ECP3704 FINAL 2025 QUESTIONS| WITH
ALREADY SOLVED CORRECTLY
ANSWERS!! | ASSURED SUCCESS
The income effect means that when the price of a good rises.... - 🧠
ANSWER ✔✔the buying power of your income falls.
The substitution effect - 🧠 ANSWER ✔✔reduces the quantity demanded of
a good when its price increases.
The ______ of an uncertain payoff is defined as the weighted average of all
possible outcomes, where the probability of each outcome is used as the
weights - 🧠 ANSWER ✔✔Expected value
If employees' activities follow the economists' view of behavior, managers
will be most effective if they can - 🧠 ANSWER ✔✔influence the costs and
benefits of employee actions.
Assume that the quantity of apples is measured on the horizontal axis and
the quantity of oranges is measured on the vertical axis. If the budget line
1
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, rotates upward while keeping the same horizontal intercept, it implies that -
🧠 ANSWER ✔✔the price of oranges has decreased.
The budget line - 🧠 ANSWER ✔✔shows all the combinations of goods that
require the same total expenditure.
If available income decreases, then - 🧠 ANSWER ✔✔the budget line will
shift inward.
Marginal costs - 🧠 ANSWER ✔✔
If supply increases, then the - 🧠 ANSWER ✔✔Equilibrium price goes down
A decrease in demand means that quantity demanded falls - 🧠 ANSWER
✔✔at all prices
If supply increases and demand remains unchanged, equilibrium quantity
will _______ and equilibrium price will ______________. - 🧠 ANSWER
✔✔rise, fall
The law of demand indicates that as the price of a good increases, the
quantity that - 🧠 ANSWER ✔✔Buyers are able to purchase decreases
All else held constant, as additional firms enter an industry - 🧠 ANSWER
✔✔More output is available at each given price
2
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
ALREADY SOLVED CORRECTLY
ANSWERS!! | ASSURED SUCCESS
The income effect means that when the price of a good rises.... - 🧠
ANSWER ✔✔the buying power of your income falls.
The substitution effect - 🧠 ANSWER ✔✔reduces the quantity demanded of
a good when its price increases.
The ______ of an uncertain payoff is defined as the weighted average of all
possible outcomes, where the probability of each outcome is used as the
weights - 🧠 ANSWER ✔✔Expected value
If employees' activities follow the economists' view of behavior, managers
will be most effective if they can - 🧠 ANSWER ✔✔influence the costs and
benefits of employee actions.
Assume that the quantity of apples is measured on the horizontal axis and
the quantity of oranges is measured on the vertical axis. If the budget line
1
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, rotates upward while keeping the same horizontal intercept, it implies that -
🧠 ANSWER ✔✔the price of oranges has decreased.
The budget line - 🧠 ANSWER ✔✔shows all the combinations of goods that
require the same total expenditure.
If available income decreases, then - 🧠 ANSWER ✔✔the budget line will
shift inward.
Marginal costs - 🧠 ANSWER ✔✔
If supply increases, then the - 🧠 ANSWER ✔✔Equilibrium price goes down
A decrease in demand means that quantity demanded falls - 🧠 ANSWER
✔✔at all prices
If supply increases and demand remains unchanged, equilibrium quantity
will _______ and equilibrium price will ______________. - 🧠 ANSWER
✔✔rise, fall
The law of demand indicates that as the price of a good increases, the
quantity that - 🧠 ANSWER ✔✔Buyers are able to purchase decreases
All else held constant, as additional firms enter an industry - 🧠 ANSWER
✔✔More output is available at each given price
2
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
