Economics 1014 Final – Mizzou Study
Guide Exam And 100% Actual
Answers 2025-2026 Updated.
Incentives - Answer Are rewards and penalties that motivate behavior
Opportunity Cost - Answer A choice is the value of the opportunities lost
Inflation - Answer An increase in the general level of prices
Absolute Advantage - Answer The ability to produce the same good using fewer inputs than
another producer
Comparative Advantage - Answer The ability to produce a good or service at a lower
opportunity cost than another producer
Demand Curve - Answer A function that shows the quantity demanded at different prices
Important Demand Curve Shifters - Answer 1.) Income
2.) Population
3.) Price of substitutes
4.) Price of complements
5.) Expectations
6.) Tastes
Determining the Elasticity of Demand - Less Elastic - Answer 1.) Fewer substitutes
2.) Short time
3.)Necessities
4.)Small part of budget
Determining the Elasticity of Demand - More Elastic - Answer 1.) More Substitutes
, Quantity Demanded - Answer The quantity that buyers are willing and able to buy at a
particular price
Consumer Surplus - Answer The consumer's gain from exchange, or the difference between
the maximum price a consumer is willing to pay for a certain quantity and the market price
Total Consumer Surplus - Answer The consumer's gain from exchange, or the difference
between the maximum price a consumer is willing to pay for a certain quantity and the market
price
Normal Good - Answer A good for which demand increases when income increases
Inferior Good - Answer A good for which demand decreases when income increases
Substitutes - Answer Two goods for which a decrease in the price of one leads to a decrease
in demand for the other
Complements - Answer Two goods for which a decrease in the price of one leads to an
increase in the demand for the other
Supply Curve - Answer A function that shows the quantity supplied at different prices
Important Supply Curve Shifters - Answer 1.) Technological innovations and changes in the
price of inputs
2.) Taxes and subsidies
3.) Expectations
4.) Entry or exit of producers
5.) Changes in opportunity costs
Determining the Elasticity of Supply - Less Elastic - Answer 1.) Difficult to increase production
at constant unit cost
2.) Large share of market for inputs
3.) Global supply
Guide Exam And 100% Actual
Answers 2025-2026 Updated.
Incentives - Answer Are rewards and penalties that motivate behavior
Opportunity Cost - Answer A choice is the value of the opportunities lost
Inflation - Answer An increase in the general level of prices
Absolute Advantage - Answer The ability to produce the same good using fewer inputs than
another producer
Comparative Advantage - Answer The ability to produce a good or service at a lower
opportunity cost than another producer
Demand Curve - Answer A function that shows the quantity demanded at different prices
Important Demand Curve Shifters - Answer 1.) Income
2.) Population
3.) Price of substitutes
4.) Price of complements
5.) Expectations
6.) Tastes
Determining the Elasticity of Demand - Less Elastic - Answer 1.) Fewer substitutes
2.) Short time
3.)Necessities
4.)Small part of budget
Determining the Elasticity of Demand - More Elastic - Answer 1.) More Substitutes
, Quantity Demanded - Answer The quantity that buyers are willing and able to buy at a
particular price
Consumer Surplus - Answer The consumer's gain from exchange, or the difference between
the maximum price a consumer is willing to pay for a certain quantity and the market price
Total Consumer Surplus - Answer The consumer's gain from exchange, or the difference
between the maximum price a consumer is willing to pay for a certain quantity and the market
price
Normal Good - Answer A good for which demand increases when income increases
Inferior Good - Answer A good for which demand decreases when income increases
Substitutes - Answer Two goods for which a decrease in the price of one leads to a decrease
in demand for the other
Complements - Answer Two goods for which a decrease in the price of one leads to an
increase in the demand for the other
Supply Curve - Answer A function that shows the quantity supplied at different prices
Important Supply Curve Shifters - Answer 1.) Technological innovations and changes in the
price of inputs
2.) Taxes and subsidies
3.) Expectations
4.) Entry or exit of producers
5.) Changes in opportunity costs
Determining the Elasticity of Supply - Less Elastic - Answer 1.) Difficult to increase production
at constant unit cost
2.) Large share of market for inputs
3.) Global supply
