Microeconomics Exam 2025 With
100%Correct Answers
Scarcity - CORRECT ANSWER✔✔the condition of having to choose among alternatives
scarce good - CORRECT ANSWER✔✔one for which the choice of one alternative requires that
another be given up
free good - CORRECT ANSWER✔✔one for which the choice of one use does not require that we
give up another.
opportunity cost - CORRECT ANSWER✔✔the value of the best alternative forgone in making any
choice.
margin - CORRECT ANSWER✔✔is the current level of an activity.
choice at the margin - CORRECT ANSWER✔✔a decision to do a little more or a little less of
something.
Ceteris paribus - CORRECT ANSWER✔✔a Latin phrase that means "all other things unchanged."
fallacy of false cause - CORRECT ANSWER✔✔Reaching the incorrect conclusion that one event
causes another because the two events tend to occur together
positive statement - CORRECT ANSWER✔✔A statement of fact or a hypothesis
, normative statement - CORRECT ANSWER✔✔one that makes a value judgment.
quantity demanded of a good or service - CORRECT ANSWER✔✔is the quantity buyers are
willing and able to buy at a particular price during a particular period, all other things
unchanged.
demand schedule - CORRECT ANSWER✔✔a table that shows the quantities of a good or service
demanded at different prices during a particular period, all other things unchanged.
demand curve - CORRECT ANSWER✔✔a graphical representation of a demand schedule.
change in quantity demanded - CORRECT ANSWER✔✔A movement along a demand curve that
results from a change in price
law of demand - CORRECT 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.
change in demand - CORRECT ANSWER✔✔A shift in a demand curve
demand shifter - CORRECT ANSWER✔✔A variable that can change the quantity of a good or
service demanded at each price
complements - CORRECT ANSWER✔✔if a reduction in the price of one good increases the
demand for another, the two goods are called
substitutes - CORRECT ANSWER✔✔If a reduction in the price of one good reduces the demand
for another, the two goods are called
100%Correct Answers
Scarcity - CORRECT ANSWER✔✔the condition of having to choose among alternatives
scarce good - CORRECT ANSWER✔✔one for which the choice of one alternative requires that
another be given up
free good - CORRECT ANSWER✔✔one for which the choice of one use does not require that we
give up another.
opportunity cost - CORRECT ANSWER✔✔the value of the best alternative forgone in making any
choice.
margin - CORRECT ANSWER✔✔is the current level of an activity.
choice at the margin - CORRECT ANSWER✔✔a decision to do a little more or a little less of
something.
Ceteris paribus - CORRECT ANSWER✔✔a Latin phrase that means "all other things unchanged."
fallacy of false cause - CORRECT ANSWER✔✔Reaching the incorrect conclusion that one event
causes another because the two events tend to occur together
positive statement - CORRECT ANSWER✔✔A statement of fact or a hypothesis
, normative statement - CORRECT ANSWER✔✔one that makes a value judgment.
quantity demanded of a good or service - CORRECT ANSWER✔✔is the quantity buyers are
willing and able to buy at a particular price during a particular period, all other things
unchanged.
demand schedule - CORRECT ANSWER✔✔a table that shows the quantities of a good or service
demanded at different prices during a particular period, all other things unchanged.
demand curve - CORRECT ANSWER✔✔a graphical representation of a demand schedule.
change in quantity demanded - CORRECT ANSWER✔✔A movement along a demand curve that
results from a change in price
law of demand - CORRECT 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.
change in demand - CORRECT ANSWER✔✔A shift in a demand curve
demand shifter - CORRECT ANSWER✔✔A variable that can change the quantity of a good or
service demanded at each price
complements - CORRECT ANSWER✔✔if a reduction in the price of one good increases the
demand for another, the two goods are called
substitutes - CORRECT ANSWER✔✔If a reduction in the price of one good reduces the demand
for another, the two goods are called
