QUEEN’S ECON 110 EXAM-SPRING 2026/2027
WITH ACTUAL CORRECT QUESTIONS AND
VERIFIED DETAILED RATIONALES
ANSWERS |CURRENTLY TESTING
QUESTIONS AND SOLUTIONS|ALREADY
GRADED A+|NEWEST|JUST RELEASED!!|
BRAND NEW VERSION!!| GUARANTEED
PASS
If a seller in a competitive market chooses to charge more than the going price, then
buyers will make purchases from other sellers
refer to figure. The movement from point A to point B on the graph is caused by
a decrease in price
which of the following changes would not shift the demand curve for a good or service
a change in the price of a good or service
when we move along a given supply curve
all nonprice determinants of supply are held constant.
a baker recently has come to expect higher prices for bread in the near future. we would expect
the baker to supply less bread now than she was supplying previously
refer to figure above. at a price of $10 there would be a
shortage of 600 units
refer to figure above. which of the following movments would illustrate the effect of an increase
in the incomes of parents with school-aged children on the market for soccer lessons?
1|Page
,point C to Point B
Who gets scarce resources in a market economy
whoever is willing and able to pay the price
Economists often find it worthwhile to make assumptions that do not necessarily describe the
real world. t/f
true
If a major union goes on strike, then the country would be operating inside its production
possibilities frontier. t/f
true
government policies that improve equality usually increase efficiency at the same time t/f
false
the "invisible hand: influences market behavior through trade t/f
false
some countries win in international trade, while other countries lose t/f
false
the production possibilities frontier shows the trade-off that the producer faces but does not
identify the choice the producer will make t/f
true
a price ceiling set above the equilibrium price is not binding t/f
true
a tax of $1 on buyers always decreases the equilibrium price by $1 t/f
false
2|Page
, a decrease in the price of a product an an increase in the number of buyers in the marker affect
the demand curve in the same general way t/f
false
a decrease in supply will cause an increase in price, which will cause a decrease in quantity
demanded t/f
true
In a simple circular-flow diagram, total income and total expenditure are
always equal because every transaction has a buyer and a seller.
2. If the price of a dress is three times the price of a pair of shoes, then a pair of shoes
contributes
exactly one-third as much to GDP as does a dress.
A farmer produces lemons and sells them to Fresh Juice, which makes lemon juice. The
lemons produced by the farmer are called
(d) intermediate goods.
4. U.S. GDP and U.S. GNP are related as follows:
(d)GNP = GDP - Income earned by foreigners in the U.S. + Income earned by U.S.
citizens abroad.
5. Social Security payments are
excluded form the Gdp because they do not reflect the econonmy's production
If net exports is a negative number for a particular year, then
the value of foreign goods purchased exceeded the value of goods sold to foreigners
during the year.
3|Page
WITH ACTUAL CORRECT QUESTIONS AND
VERIFIED DETAILED RATIONALES
ANSWERS |CURRENTLY TESTING
QUESTIONS AND SOLUTIONS|ALREADY
GRADED A+|NEWEST|JUST RELEASED!!|
BRAND NEW VERSION!!| GUARANTEED
PASS
If a seller in a competitive market chooses to charge more than the going price, then
buyers will make purchases from other sellers
refer to figure. The movement from point A to point B on the graph is caused by
a decrease in price
which of the following changes would not shift the demand curve for a good or service
a change in the price of a good or service
when we move along a given supply curve
all nonprice determinants of supply are held constant.
a baker recently has come to expect higher prices for bread in the near future. we would expect
the baker to supply less bread now than she was supplying previously
refer to figure above. at a price of $10 there would be a
shortage of 600 units
refer to figure above. which of the following movments would illustrate the effect of an increase
in the incomes of parents with school-aged children on the market for soccer lessons?
1|Page
,point C to Point B
Who gets scarce resources in a market economy
whoever is willing and able to pay the price
Economists often find it worthwhile to make assumptions that do not necessarily describe the
real world. t/f
true
If a major union goes on strike, then the country would be operating inside its production
possibilities frontier. t/f
true
government policies that improve equality usually increase efficiency at the same time t/f
false
the "invisible hand: influences market behavior through trade t/f
false
some countries win in international trade, while other countries lose t/f
false
the production possibilities frontier shows the trade-off that the producer faces but does not
identify the choice the producer will make t/f
true
a price ceiling set above the equilibrium price is not binding t/f
true
a tax of $1 on buyers always decreases the equilibrium price by $1 t/f
false
2|Page
, a decrease in the price of a product an an increase in the number of buyers in the marker affect
the demand curve in the same general way t/f
false
a decrease in supply will cause an increase in price, which will cause a decrease in quantity
demanded t/f
true
In a simple circular-flow diagram, total income and total expenditure are
always equal because every transaction has a buyer and a seller.
2. If the price of a dress is three times the price of a pair of shoes, then a pair of shoes
contributes
exactly one-third as much to GDP as does a dress.
A farmer produces lemons and sells them to Fresh Juice, which makes lemon juice. The
lemons produced by the farmer are called
(d) intermediate goods.
4. U.S. GDP and U.S. GNP are related as follows:
(d)GNP = GDP - Income earned by foreigners in the U.S. + Income earned by U.S.
citizens abroad.
5. Social Security payments are
excluded form the Gdp because they do not reflect the econonmy's production
If net exports is a negative number for a particular year, then
the value of foreign goods purchased exceeded the value of goods sold to foreigners
during the year.
3|Page
