Economics Macro Bergin Blinn College
Final Review Exam Q&A 100% Solved
Economics - ✔✔is defined as the study of how individuals decide to use their
scarce resources in an attempt to satisfy their unlimited wants
Scarcity - ✔✔limited or insufficient resources being unable to satisfy unlimited
wants
Ceteris paribus - ✔✔in economics means holding other things constant.
Law of demand - ✔✔the lower the price of a good the greater the quantity
demanded. It shows the inverse relationship between the price of a good and
the quantity demanded.
Law of supply - ✔✔states that the lower the price of a good, the smaller the
quantity supplied
a. If the product's price increases the quantity supplied increases.
b. If the product's price decreases the quantity supplied decreases.
Macroeconomics - ✔✔the study of behavior and performance of the total
economy. It includes price levels, economic growth, unemployment, and
economic fluctuations.
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©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
,increase in supply, lower equilibrium price, higher equilibrium quantity - ✔✔A
new hormone will increase the amount of eggs each hen produces. Remember
the supply shift word SPENT. Hormones would come under "T" for technology.
If this hormone is used in many chicken farms, the effect on the egg market is
labor, capital, natural resources or land, entrepreneurial skills - ✔✔Four
categories of resources
Marginal propensity to consume - ✔✔the fractional change in extra disposable
income that is spent on consumption
mixed economic system - ✔✔The economy of the U.S. is best described as a
Command economy - ✔✔a. rely on central planning board
b. Decisions about what is produced are largely determined by a government
official or a committee associated with the central planning organization.
c. Example: Cuba, North Korea, Iran
Market economy - ✔✔(pure capitalism) resources are allocated by
a. individual decision makers responding to market prices
b. Private ownership of resources
c. use of prices to coordinate economic activity
d. unregulated/free markets
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©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
, Consumer sovereignty - ✔✔explains how individual consumers in the market
place determine what is to be produced.
Complementary goods - ✔✔are products that go good together such as peanut
butter and jelly.
substitutes - ✔✔if an increase in the price of one causes an increase in the
demand for the other good. Example: Coke and Pepsi, white bread and wheat
bread, butter and margarine
Physical Capital - ✔✔is the equipment and structures used to produce goods
and services.
a. Office buildings, tools, machines and factories
human capital - ✔✔the productive knowledge, education and skill people
receive from education and on-the-job training
cause a demand curve to shift - ✔✔a. If our income increases, the demand curve
will shift to the right.
b. If income decreases, the demand curve shifts to the left.
PYNTE - ✔✔price of related goods, income, number of demanders, taste,
expectations
3|Page
©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
Final Review Exam Q&A 100% Solved
Economics - ✔✔is defined as the study of how individuals decide to use their
scarce resources in an attempt to satisfy their unlimited wants
Scarcity - ✔✔limited or insufficient resources being unable to satisfy unlimited
wants
Ceteris paribus - ✔✔in economics means holding other things constant.
Law of demand - ✔✔the lower the price of a good the greater the quantity
demanded. It shows the inverse relationship between the price of a good and
the quantity demanded.
Law of supply - ✔✔states that the lower the price of a good, the smaller the
quantity supplied
a. If the product's price increases the quantity supplied increases.
b. If the product's price decreases the quantity supplied decreases.
Macroeconomics - ✔✔the study of behavior and performance of the total
economy. It includes price levels, economic growth, unemployment, and
economic fluctuations.
1|Page
©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
,increase in supply, lower equilibrium price, higher equilibrium quantity - ✔✔A
new hormone will increase the amount of eggs each hen produces. Remember
the supply shift word SPENT. Hormones would come under "T" for technology.
If this hormone is used in many chicken farms, the effect on the egg market is
labor, capital, natural resources or land, entrepreneurial skills - ✔✔Four
categories of resources
Marginal propensity to consume - ✔✔the fractional change in extra disposable
income that is spent on consumption
mixed economic system - ✔✔The economy of the U.S. is best described as a
Command economy - ✔✔a. rely on central planning board
b. Decisions about what is produced are largely determined by a government
official or a committee associated with the central planning organization.
c. Example: Cuba, North Korea, Iran
Market economy - ✔✔(pure capitalism) resources are allocated by
a. individual decision makers responding to market prices
b. Private ownership of resources
c. use of prices to coordinate economic activity
d. unregulated/free markets
2|Page
©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
, Consumer sovereignty - ✔✔explains how individual consumers in the market
place determine what is to be produced.
Complementary goods - ✔✔are products that go good together such as peanut
butter and jelly.
substitutes - ✔✔if an increase in the price of one causes an increase in the
demand for the other good. Example: Coke and Pepsi, white bread and wheat
bread, butter and margarine
Physical Capital - ✔✔is the equipment and structures used to produce goods
and services.
a. Office buildings, tools, machines and factories
human capital - ✔✔the productive knowledge, education and skill people
receive from education and on-the-job training
cause a demand curve to shift - ✔✔a. If our income increases, the demand curve
will shift to the right.
b. If income decreases, the demand curve shifts to the left.
PYNTE - ✔✔price of related goods, income, number of demanders, taste,
expectations
3|Page
©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
