ECON 213
Principles of Microeconomics
Finals Exam (Qns & Ans)
2025
General Instructions
1. Read All Questions Carefully: Make sure you understand each question.
2. Time Management: You have a specific amount of time to complete the exam.
Keep an eye on the clock and pace yourself.
3. Allowed Materials: Only use materials that are explicitly allowed. Unauthorized
materials can lead to disqualification.
4. ANS Format: Follow the required format for your ANS. For example, multiple-
choice questions might need you to select the best ANS, while essay questions
require detailed responses.
5. Academic Integrity: Adhere to the university's honor code. Any form of cheating or
plagiarism is strictly prohibited.
6. Technical Requirements: Ensure your computer and internet connection are
stable. For online exams, you might need a webcam and microphone for proctoring
purposes.
7. Submission: Submit your ANS before the time expires. Late submissions might
not be accepted.
©2024/2025
,1. Which of the following best describes the concept of price
elasticity of demand?
a) The responsiveness of supply to changes in price
b) The responsiveness of demand to changes in price
c) The responsiveness of demand to changes in income
d) The responsiveness of supply to changes in income
Correct ANS: b
Rationale: Price elasticity of demand measures how the
quantity demanded of a good responds to a change in its price.
2. If a firm is operating in a perfectly competitive market, which
of the following is true regarding its demand curve?
a) The demand curve is downward sloping.
b) The demand curve is perfectly elastic.
c) The demand curve is perfectly inelastic.
d) The demand curve is upward sloping.
Correct ANS: b
Rationale: In perfect competition, firms are price takers,
meaning they can sell any quantity at the market price; hence,
their demand curve is perfectly elastic.
©2024/2025
, 3. Which of the following factors can lead to a rightward shift in
the supply curve?
a) Increase in production costs
b) Technological advancements
c) Decrease in the number of suppliers
d) Introduction of tariffs
Correct ANS: b
Rationale: Technological advancements typically lower
production costs, making it easier for firms to supply more at
every price level.
4. In the case of a monopoly, what typically happens to
consumer surplus?
a) It increases
b) It decreases
c) It remains unchanged
d) It becomes zero
Correct ANS: b
Rationale: Monopolists usually set higher prices compared to
competitive markets, decreasing the consumer surplus.
©2024/2025
Principles of Microeconomics
Finals Exam (Qns & Ans)
2025
General Instructions
1. Read All Questions Carefully: Make sure you understand each question.
2. Time Management: You have a specific amount of time to complete the exam.
Keep an eye on the clock and pace yourself.
3. Allowed Materials: Only use materials that are explicitly allowed. Unauthorized
materials can lead to disqualification.
4. ANS Format: Follow the required format for your ANS. For example, multiple-
choice questions might need you to select the best ANS, while essay questions
require detailed responses.
5. Academic Integrity: Adhere to the university's honor code. Any form of cheating or
plagiarism is strictly prohibited.
6. Technical Requirements: Ensure your computer and internet connection are
stable. For online exams, you might need a webcam and microphone for proctoring
purposes.
7. Submission: Submit your ANS before the time expires. Late submissions might
not be accepted.
©2024/2025
,1. Which of the following best describes the concept of price
elasticity of demand?
a) The responsiveness of supply to changes in price
b) The responsiveness of demand to changes in price
c) The responsiveness of demand to changes in income
d) The responsiveness of supply to changes in income
Correct ANS: b
Rationale: Price elasticity of demand measures how the
quantity demanded of a good responds to a change in its price.
2. If a firm is operating in a perfectly competitive market, which
of the following is true regarding its demand curve?
a) The demand curve is downward sloping.
b) The demand curve is perfectly elastic.
c) The demand curve is perfectly inelastic.
d) The demand curve is upward sloping.
Correct ANS: b
Rationale: In perfect competition, firms are price takers,
meaning they can sell any quantity at the market price; hence,
their demand curve is perfectly elastic.
©2024/2025
, 3. Which of the following factors can lead to a rightward shift in
the supply curve?
a) Increase in production costs
b) Technological advancements
c) Decrease in the number of suppliers
d) Introduction of tariffs
Correct ANS: b
Rationale: Technological advancements typically lower
production costs, making it easier for firms to supply more at
every price level.
4. In the case of a monopoly, what typically happens to
consumer surplus?
a) It increases
b) It decreases
c) It remains unchanged
d) It becomes zero
Correct ANS: b
Rationale: Monopolists usually set higher prices compared to
competitive markets, decreasing the consumer surplus.
©2024/2025
