AAEC 2305 - Exam 2 Redo Questions with Correct Answers Latest Update 2025/2026
Firm - Answers group of people that produces a service to meet demand
entrepreneur - Answers The head of the firm, take all the hits
households - Answers The consuming units in an economy
product/output market - Answers firms supply the demand
input/factor markets - Answers firms buy the inputs
goods/services - Answers flow clockwise
payments - Answers flow counterclockwise
Labor Market - Answers Households work for their wages
Capital Market - Answers households supply savings
3 key factors of Production - Answers Land, Labor, Capital
Land Market - Answers People are renting land or buildings to others
Quantity Demanded - Answers # of units a household will buy in a period
Ceteris Paribus - Answers changes in price affect the quantity demanded per period
Demand Schedule - Answers how much of a product a household is willing to buy in a period
Demand Curve - Answers a graph illustrating how much of a product a household will buy
Income - Answers All forms of earnings in a household
Wealth/Net Income - Answers Value - Debt
Law of Demand - Answers the claim that, other things being equal, the quantity demanded of a
good falls when the price of the good rises
Demand Curve Slope - Answers Negative
Normal Goods - Answers Upper income, steak
Inferior Goods - Answers Lower Income, Ramen
Substitutes - Answers two goods for which an increase in the price of one leads to an increase
in the demand for the other
Complements - Answers goods that go together
Firm - Answers group of people that produces a service to meet demand
entrepreneur - Answers The head of the firm, take all the hits
households - Answers The consuming units in an economy
product/output market - Answers firms supply the demand
input/factor markets - Answers firms buy the inputs
goods/services - Answers flow clockwise
payments - Answers flow counterclockwise
Labor Market - Answers Households work for their wages
Capital Market - Answers households supply savings
3 key factors of Production - Answers Land, Labor, Capital
Land Market - Answers People are renting land or buildings to others
Quantity Demanded - Answers # of units a household will buy in a period
Ceteris Paribus - Answers changes in price affect the quantity demanded per period
Demand Schedule - Answers how much of a product a household is willing to buy in a period
Demand Curve - Answers a graph illustrating how much of a product a household will buy
Income - Answers All forms of earnings in a household
Wealth/Net Income - Answers Value - Debt
Law of Demand - Answers the claim that, other things being equal, the quantity demanded of a
good falls when the price of the good rises
Demand Curve Slope - Answers Negative
Normal Goods - Answers Upper income, steak
Inferior Goods - Answers Lower Income, Ramen
Substitutes - Answers two goods for which an increase in the price of one leads to an increase
in the demand for the other
Complements - Answers goods that go together
