AAEC 2305 Final Review Exam Questions with Correct Answers Latest Update 2025/2026
At a product's equilibrium price - Answers the product's demand curve crosses the product's
supply curve.
In 2004, hurricanes destroyed a large portion of Florida's orange and grapefruit crops. In the
market for citrus fruit - Answers the supply curve shifted to the left resulting in an increase in
the equilibrium price.
Last year, the Pottery Palace supplied 8,000 ceramic pots at $40 each. This year, the company
supplied the same quantity of ceramic pots at $55 each. Based on this evidence, The Pottery
Palace has experienced - Answers A decrease in supply
In economics, choices must be made because we live in a world of - Answers Scarcity
You have an absolute advantage whenever you - Answers Can produce more of something than
others with the same resources
Refer to Table 2-6. What is Serena's opportunity cost of making a necklace?
Bracelets - 8
Necklaces - 16 - Answers 1/2 bracelet
Refer to Table 2-6. What is Haley's opportunity cost of making a bracelet?
Bracelets - 9
Necklaces - 12 - Answers 1 1/3 necklaces
Refer to Table 2-6. What is Serena's opportunity cost of making a bracelet?
Bracelets - 8
Necklaces - 16 - Answers 2 necklaces
Refer to Table 2-6. What is Haley's opportunity cost of making a necklace?
Bracelets - 9
Necklaces - 12 - Answers 3/4 of a bracelet
, Refer to Table 2-6. Which of the following statements is true? 10 - Answers Haley has a
comparative advantage in making bracelets and Serena in making necklaces.
Refer to Table 2-6. Which of the following statements is true? 11 - Answers Haley as an
absolute advantage in making bracelets and Serena in necklaces.
It is Valentine's Day in the United States, and you give your partne one dozen roses that were
freshly picked 72 hours ago from the fields of Kenya. Who or what made this gift possible? -
Answers Markets
A demand curve shows - Answers the willingness of consumers to buy a product at different
prices.
In 2004, hurricanes damaged a large portion of Florida's orange crop. As a result of this, many
orange growers were not able to supply fruit to the market. At the pre-hurricane equilibrium
price (i.e., at the initial equilibrium price), we would expect to see - Answers A shortage of
oranges
What is the name of the short movie we watched in class that explained the market function
and the extent of the market? - Answers iPencil
What is the difference between an "increase in demand" and an "increase in quantity demanded"?
- Answers An "increase in demand" is represented by a rightward shift of the demand curve
while an "increase in quantity demanded" is represented by a movement along a given demand
curve.
If, in response to an increase in the price of chocolate the quantity of chocolate demanded
decreases, economists would describe this as - Answers a decrease in quantity demanded
Which of the following statements is true about scarcity? - Answers Scarcity refers to the
situation in which unlimited wants exceeds limited resources
When the price of a good falls, consumers buy a larger quantity because of the ________ effect
and the ________ effect. - Answers substitution; income
Refer to Figure 3-4. If the price is $10, - Answers there would be a shortage of 600 units.
Paul goes to Sportsmart to buy a new tennis racquet. He is willing to pay $200 for a new racquet,
but buys one on sale for $125. Paul's consumer surplus from the purchase is - Answers $75
Markets work well because of the information delivered by: - Answers Prices
Markets coordinate in a way that links buyers and sellers who rely primarly on: - Answers
voluntary cooperation and undirected actions
Refer to Figure 4-2. What area represents the increase in producer surplus when the market
price rises from P1 to P2? - Answers A + B
At a product's equilibrium price - Answers the product's demand curve crosses the product's
supply curve.
In 2004, hurricanes destroyed a large portion of Florida's orange and grapefruit crops. In the
market for citrus fruit - Answers the supply curve shifted to the left resulting in an increase in
the equilibrium price.
Last year, the Pottery Palace supplied 8,000 ceramic pots at $40 each. This year, the company
supplied the same quantity of ceramic pots at $55 each. Based on this evidence, The Pottery
Palace has experienced - Answers A decrease in supply
In economics, choices must be made because we live in a world of - Answers Scarcity
You have an absolute advantage whenever you - Answers Can produce more of something than
others with the same resources
Refer to Table 2-6. What is Serena's opportunity cost of making a necklace?
Bracelets - 8
Necklaces - 16 - Answers 1/2 bracelet
Refer to Table 2-6. What is Haley's opportunity cost of making a bracelet?
Bracelets - 9
Necklaces - 12 - Answers 1 1/3 necklaces
Refer to Table 2-6. What is Serena's opportunity cost of making a bracelet?
Bracelets - 8
Necklaces - 16 - Answers 2 necklaces
Refer to Table 2-6. What is Haley's opportunity cost of making a necklace?
Bracelets - 9
Necklaces - 12 - Answers 3/4 of a bracelet
, Refer to Table 2-6. Which of the following statements is true? 10 - Answers Haley has a
comparative advantage in making bracelets and Serena in making necklaces.
Refer to Table 2-6. Which of the following statements is true? 11 - Answers Haley as an
absolute advantage in making bracelets and Serena in necklaces.
It is Valentine's Day in the United States, and you give your partne one dozen roses that were
freshly picked 72 hours ago from the fields of Kenya. Who or what made this gift possible? -
Answers Markets
A demand curve shows - Answers the willingness of consumers to buy a product at different
prices.
In 2004, hurricanes damaged a large portion of Florida's orange crop. As a result of this, many
orange growers were not able to supply fruit to the market. At the pre-hurricane equilibrium
price (i.e., at the initial equilibrium price), we would expect to see - Answers A shortage of
oranges
What is the name of the short movie we watched in class that explained the market function
and the extent of the market? - Answers iPencil
What is the difference between an "increase in demand" and an "increase in quantity demanded"?
- Answers An "increase in demand" is represented by a rightward shift of the demand curve
while an "increase in quantity demanded" is represented by a movement along a given demand
curve.
If, in response to an increase in the price of chocolate the quantity of chocolate demanded
decreases, economists would describe this as - Answers a decrease in quantity demanded
Which of the following statements is true about scarcity? - Answers Scarcity refers to the
situation in which unlimited wants exceeds limited resources
When the price of a good falls, consumers buy a larger quantity because of the ________ effect
and the ________ effect. - Answers substitution; income
Refer to Figure 3-4. If the price is $10, - Answers there would be a shortage of 600 units.
Paul goes to Sportsmart to buy a new tennis racquet. He is willing to pay $200 for a new racquet,
but buys one on sale for $125. Paul's consumer surplus from the purchase is - Answers $75
Markets work well because of the information delivered by: - Answers Prices
Markets coordinate in a way that links buyers and sellers who rely primarly on: - Answers
voluntary cooperation and undirected actions
Refer to Figure 4-2. What area represents the increase in producer surplus when the market
price rises from P1 to P2? - Answers A + B
