UCF ECO2023 FINAL EXAM AND ALL
ACTUAL ANSWERS 2026-2027
UPDATED.
The four types of economic goods - Answer Private
Public
Club
Common Property Resources (Common Property)
A good would be considered non-excludable in consumption if: - Answer Individuals who do
not pay for the good can not be kept from enjoying its benefits
What best represents a common property resource (Common property good)? - Answer An
aquifer used by farmers and ranchers
It is reasonable to expect that - Answer i. demand curves for a given good differ between
consumers
iii. an individual has different demand curves for different goods
In moving up or down a demand curve for a particular good: - Answer All non-price
determinants of demand are held constant.
The law of demand states that as price decreases: - Answer quantity demanded will increase,
all else held constant.
If the demand curve for a good is vertical, then: - Answer The law of demand fails to hold, and
consumer purchases are completely insensitive to changes in price.
Which of the following is not a characteristic of a perfectly competitive market? - Answer The
ability of an individual firm or individual consumer to influence the market price.
A good's choke price is the dollar amount at which none of the good will be purchased and
below which units will be purchased. If an individual's demand function for a good is given by
the linear equation Q=200-4P, then the choke price is - Answer $50
An individual's total expenditures on a good per-period (e.g., weekly) are equal to the price of
the good times the number of units of the good purchased. If an individual's demand function
,for a good is given by the linear equation Q=200-4P, then as price is lowered from the choke
price to zero his/her total expenditures: - Answer increase initially and then decrease.
An increasing concern regards the affects of sustained summer droughts (water shortages) on
the domestic supply of wheat. Noting that wheat is a primary ingredient in the production of
bread and that potatoes are a substitute for bread, if the supply of wheat declines then it is
reasonable to expect: - Answer the price of wheat to rise, the supply of bread to decrease, and
the demand for potatoes to increase.
In moving up or down an individual or market supply curve for a particular good: - Answer All
non-price determinants of supply are held constant.
The market demand for a good will decrease when there is - Answer a decrease in income if
the good is normal
Which of the following will result in an increase in the supply of a good or service? - Answer
An increase in government subsidies given to the producers of the good or providers of the
service
Using the demand and supply framework developed in class and chapter 3 of the text, one can
conclude that in order for a good to be exchanged between a seller and a buyer, it must be that:
- Answer Buyer maximum willingness-to-pay is greater than or equal to seller minimum
willingness-to-accept.
The determinants of supply are: - Answer i. factors other than price will affect the quantity of
a good or service a firm is willing and able to produce
ii. factors that affect a producers minimum willingness-to-accept (WTA) to produce various
quantities of a good
Surplus units of a good (or commodity) will arise in a market if its price is sustained: - Answer
above the equilibrium price, resulting in the quantity supplied exceeding the quantity
demanded.
If the supply of a good decreases and the demand for the good simultaneously decreases, then
the equilibrium: - Answer quantity will fall, but equilibrium price may either rise, fall, or
remain unchanged.
Consider a market for a good that is comprised of two identical producers whose supply
functions are P=40+2Q. Given this information, the market supply function is: - Answer
P=40+Q
, Consider a perfectly competitive market described by the supply function P=20+0.3Q and
demand function P=80-0.1Q. The equilibrium price and quantity are: - Answer P=$65 and
Q=150
Which of the following examples best represents a public good: - Answer a lighthouse
protecting boats from a rocky coastline.
A good is considered to by non-rival in consumption if: - Answer one individual's consumption
of the good does not affect the amount available for others to consume.
In 2011, the company Netflix began streaming movies over the internet. The monthly fee for
unlimited downloads is $7.99. Given this information, what type of economic good is a
subscription to Netflix? - Answer Club good
The distinction between club goods and common property goods is that: - Answer club goods
are excludable and non-rival, whereas common property goods are non-excludable and rival.
The distinction between public goods and private goods is that: - Answer public goods are
non-excludable and non-rival, whereas private goods are excludable and rival.
Which of the following examples best represents a common property good: - Answer a stretch
of beach allowing open-access recreational fishing
An individual who has an absolute advantage in accomplishing a particular task: - Answer Can
accomplish the task using fewer resources than others.
Suppose that for each surfboard Australia produces with its domestic resources (e.g. raw
materials and labor), it must forego the production of 25 boomerangs, whereas for each
surfboard New Zealand produces with its domestic resources, it must forego the production of
15 boomerangs. It follows that: - Answer Australia has a comparative advantage in
boomerangs.
If a country has a comparative advantage in the production of a good over another country, this
means that it has the ability to produce the good: - Answer at a lower opportunity cost than
the other country.
From a production possibilities frontier (or curve) it may be concluded that: - Answer If an
economy's resources are fully employed, then production of some goods must be sacrificed if
resources are allocated to the production of other goods.
ACTUAL ANSWERS 2026-2027
UPDATED.
The four types of economic goods - Answer Private
Public
Club
Common Property Resources (Common Property)
A good would be considered non-excludable in consumption if: - Answer Individuals who do
not pay for the good can not be kept from enjoying its benefits
What best represents a common property resource (Common property good)? - Answer An
aquifer used by farmers and ranchers
It is reasonable to expect that - Answer i. demand curves for a given good differ between
consumers
iii. an individual has different demand curves for different goods
In moving up or down a demand curve for a particular good: - Answer All non-price
determinants of demand are held constant.
The law of demand states that as price decreases: - Answer quantity demanded will increase,
all else held constant.
If the demand curve for a good is vertical, then: - Answer The law of demand fails to hold, and
consumer purchases are completely insensitive to changes in price.
Which of the following is not a characteristic of a perfectly competitive market? - Answer The
ability of an individual firm or individual consumer to influence the market price.
A good's choke price is the dollar amount at which none of the good will be purchased and
below which units will be purchased. If an individual's demand function for a good is given by
the linear equation Q=200-4P, then the choke price is - Answer $50
An individual's total expenditures on a good per-period (e.g., weekly) are equal to the price of
the good times the number of units of the good purchased. If an individual's demand function
,for a good is given by the linear equation Q=200-4P, then as price is lowered from the choke
price to zero his/her total expenditures: - Answer increase initially and then decrease.
An increasing concern regards the affects of sustained summer droughts (water shortages) on
the domestic supply of wheat. Noting that wheat is a primary ingredient in the production of
bread and that potatoes are a substitute for bread, if the supply of wheat declines then it is
reasonable to expect: - Answer the price of wheat to rise, the supply of bread to decrease, and
the demand for potatoes to increase.
In moving up or down an individual or market supply curve for a particular good: - Answer All
non-price determinants of supply are held constant.
The market demand for a good will decrease when there is - Answer a decrease in income if
the good is normal
Which of the following will result in an increase in the supply of a good or service? - Answer
An increase in government subsidies given to the producers of the good or providers of the
service
Using the demand and supply framework developed in class and chapter 3 of the text, one can
conclude that in order for a good to be exchanged between a seller and a buyer, it must be that:
- Answer Buyer maximum willingness-to-pay is greater than or equal to seller minimum
willingness-to-accept.
The determinants of supply are: - Answer i. factors other than price will affect the quantity of
a good or service a firm is willing and able to produce
ii. factors that affect a producers minimum willingness-to-accept (WTA) to produce various
quantities of a good
Surplus units of a good (or commodity) will arise in a market if its price is sustained: - Answer
above the equilibrium price, resulting in the quantity supplied exceeding the quantity
demanded.
If the supply of a good decreases and the demand for the good simultaneously decreases, then
the equilibrium: - Answer quantity will fall, but equilibrium price may either rise, fall, or
remain unchanged.
Consider a market for a good that is comprised of two identical producers whose supply
functions are P=40+2Q. Given this information, the market supply function is: - Answer
P=40+Q
, Consider a perfectly competitive market described by the supply function P=20+0.3Q and
demand function P=80-0.1Q. The equilibrium price and quantity are: - Answer P=$65 and
Q=150
Which of the following examples best represents a public good: - Answer a lighthouse
protecting boats from a rocky coastline.
A good is considered to by non-rival in consumption if: - Answer one individual's consumption
of the good does not affect the amount available for others to consume.
In 2011, the company Netflix began streaming movies over the internet. The monthly fee for
unlimited downloads is $7.99. Given this information, what type of economic good is a
subscription to Netflix? - Answer Club good
The distinction between club goods and common property goods is that: - Answer club goods
are excludable and non-rival, whereas common property goods are non-excludable and rival.
The distinction between public goods and private goods is that: - Answer public goods are
non-excludable and non-rival, whereas private goods are excludable and rival.
Which of the following examples best represents a common property good: - Answer a stretch
of beach allowing open-access recreational fishing
An individual who has an absolute advantage in accomplishing a particular task: - Answer Can
accomplish the task using fewer resources than others.
Suppose that for each surfboard Australia produces with its domestic resources (e.g. raw
materials and labor), it must forego the production of 25 boomerangs, whereas for each
surfboard New Zealand produces with its domestic resources, it must forego the production of
15 boomerangs. It follows that: - Answer Australia has a comparative advantage in
boomerangs.
If a country has a comparative advantage in the production of a good over another country, this
means that it has the ability to produce the good: - Answer at a lower opportunity cost than
the other country.
From a production possibilities frontier (or curve) it may be concluded that: - Answer If an
economy's resources are fully employed, then production of some goods must be sacrificed if
resources are allocated to the production of other goods.
