MICROECONOMICS MAIN EXAM
PREPATION TUTORIAL QUESTIONS
WITH CORRECT ANSWERS FOR
ASSURED A+ PASS GUARANTEED
UPDATED 2025/2026
1) margin - ANSWER ✓ is the current level of an activity.
2) choice at the margin - ANSWER ✓ a decision to do a little more or
a little less of something.
3) Ceteris paribus - ANSWER ✓ a Latin phrase that means "all other
things unchanged."
4) fallacy of false cause - ANSWER ✓ Reaching the incorrect
conclusion that one event causes another because the two events
tend to occur together
5) positive statement - ANSWER ✓ A statement of fact or a
hypothesis
6) normative statement - ANSWER ✓ one that makes a value
judgment.
7) quantity demanded of a good or service - ANSWER ✓ is the
quantity buyers are willing and able to buy at a particular price
during a particular period, all other things unchanged.
, 8) demand schedule - ANSWER ✓ a table that shows the quantities
of a good or service demanded at different prices during a
particular period, all other things unchanged.
9) demand curve - ANSWER ✓ a graphical representation of a
demand schedule.
10) Scarcity - ANSWER ✓ the condition of having to choose
among alternatives
11) scarce good - ANSWER ✓ one for which the choice of one
alternative requires that another be given up
12) free good - ANSWER ✓ one for which the choice of one use
does not require that we give up another.
13) opportunity cost - ANSWER ✓ the value of the best
alternative forgone in making any choice.
14) change in quantity demanded - ANSWER ✓ A movement
along a demand curve that results from a change in price
15) law of demand - ANSWER ✓ for virtually all goods and
services, a higher price leads to a reduction in quantity demanded
and a lower price leads to an increase in quantity demanded.
16) change in demand - ANSWER ✓ A shift in a demand curve
17) demand shifter - ANSWER ✓ A variable that can change the
quantity of a good or service demanded at each price
18) complements - ANSWER ✓ if a reduction in the price of one
good increases the demand for another, the two goods are called
PREPATION TUTORIAL QUESTIONS
WITH CORRECT ANSWERS FOR
ASSURED A+ PASS GUARANTEED
UPDATED 2025/2026
1) margin - ANSWER ✓ is the current level of an activity.
2) choice at the margin - ANSWER ✓ a decision to do a little more or
a little less of something.
3) Ceteris paribus - ANSWER ✓ a Latin phrase that means "all other
things unchanged."
4) fallacy of false cause - ANSWER ✓ Reaching the incorrect
conclusion that one event causes another because the two events
tend to occur together
5) positive statement - ANSWER ✓ A statement of fact or a
hypothesis
6) normative statement - ANSWER ✓ one that makes a value
judgment.
7) quantity demanded of a good or service - ANSWER ✓ is the
quantity buyers are willing and able to buy at a particular price
during a particular period, all other things unchanged.
, 8) demand schedule - ANSWER ✓ a table that shows the quantities
of a good or service demanded at different prices during a
particular period, all other things unchanged.
9) demand curve - ANSWER ✓ a graphical representation of a
demand schedule.
10) Scarcity - ANSWER ✓ the condition of having to choose
among alternatives
11) scarce good - ANSWER ✓ one for which the choice of one
alternative requires that another be given up
12) free good - ANSWER ✓ one for which the choice of one use
does not require that we give up another.
13) opportunity cost - ANSWER ✓ the value of the best
alternative forgone in making any choice.
14) change in quantity demanded - ANSWER ✓ A movement
along a demand curve that results from a change in price
15) law of demand - ANSWER ✓ for virtually all goods and
services, a higher price leads to a reduction in quantity demanded
and a lower price leads to an increase in quantity demanded.
16) change in demand - ANSWER ✓ A shift in a demand curve
17) demand shifter - ANSWER ✓ A variable that can change the
quantity of a good or service demanded at each price
18) complements - ANSWER ✓ if a reduction in the price of one
good increases the demand for another, the two goods are called
