EC111 Final Exam questions n answers rated A+ 2025/2026

EC111 Final Exam questions n
answers rated A+ 2025/2026

Types of Resources - correct answer ✔✔- Labor

- Capital (Equipment)

- Natural Resources

- Entrepreneurial Ability



Positive Economics - correct answer ✔✔- Assertion of fact

- Law

- What is



Normative Economics - correct answer ✔✔- Opinion

- Belief

- What should be



Law of Comparative Advantage - correct answer ✔✔If economies specialize and produce where
they have the lowest opportunity cost, both economies can be better off.



The Three Big Questions - correct answer ✔✔1.) What to produce? (How much?)

2.) How to produce?

3.) How to distribute?



Types of Economic Systems - correct answer ✔✔1.) Capitalism (market-based, laissez-faire)

2.) Command economy (communism)

, 3.) Mixed economy



Law of Demand - correct answer ✔✔An inverse relationship between price and quantity
demanded



What causes changes in demand? - correct answer ✔✔- consumer incomes

- changes in prices of other goods

- preference/taste

- expectations

- #/composition of consumers



Law of Supply - correct answer ✔✔A direct relationship between price and quantity supplied



What causes changes in supply? - correct answer ✔✔- cost of production/price of resources

- change in technology

- change in price of other products

- # of producers

- producer expectations

- government interventions



Elasticity - correct answer ✔✔Measure of responsiveness



Determinants of Elasticity of Quantity Demanded - correct answer ✔✔- addiction

- necessity vs. luxury

- availability of substitutes

- adjustment period