Econ 202
Econ 202 Final Exam Questions and
Answers Graded A+ 2026
What is economics? -Correct Answer ✔-The study of how people make choices.
Macroeconomics -Correct Answer ✔-Looks at the economy as a whole, focusing on
issues such as growth, unemployment, inflation, and business cycles
Microeconomics -Correct Answer ✔-the branch of economics that studies the economy
of consumers or households or individual firms
Scarcity -Correct Answer ✔-limited quantities of resources to meet unlimited wants
Opportunity Cost -Correct Answer ✔-the thing you give up when you decide to do or
have something else
Positive Economics -Correct Answer ✔-the part of economics involving what are
established facts; the analysis of facts or data to establish scientific generalizations
about economic behavior
Normative Economics -Correct Answer ✔-Judgments about "what ought to be" in
economic matters.
Specialization -Correct Answer ✔-Workers concentrate on producing those goods and
services for which they have a competitive advantage
The Factors of Production -Correct Answer ✔-Land, labor*, and capital-- the 3 things
required for any kind of economic production. *Entrepreneurs (risk-takers)
The Role of Money in Production -Correct Answer ✔-Helps speed up transactions in the
economy. Instead of trading someone for another product they might not necessaryily
need. Keeps economy running.
The Supply of Factors of Production -Correct Answer ✔-How much land, labor and
capital one owns or is able to use to produce
Assumptions Underlying the Production Possibilities Curve -Correct Answer ✔-
Economic Efficiency (Whether all resources are being used to their fullest advantage for
the demand of the economy), Fully Employed Resources (Whether or not all the
resources are being used without and waste), A finite amount of factors of production
(You only have so much land, labor and capital to use and can't produce outside of that
range)
Econ 202
, Econ 202
Technology and the Production Possibilities Curve -Correct Answer ✔-Advances in
technology mean the production possibilities curve shifts outward and more units of one
or more resources can now be made
Production and Economic Growth -Correct Answer ✔-More things are produced and
therefore more things are bought.
Comparative advantage and the combinations of goods on the production possibilities
curve -Correct Answer ✔-Comparative advantage causes nations to operate on their
production possibilities curves
Points Representing Combinations of Goods Produced and what they Represent in
relationship to the production possibilities curve -Correct Answer ✔-Points on the
production possibilities curve represent an economy producing as much as they can.
Points under the curve represent producing less than is possible and points above
represent a quantity that is not possible to produce with the current Factors of
Production
The Law of Demand -Correct Answer ✔-other things remaining equal, people will
purchase a smaller quantity of the goods or services they want as the cost of
purchasing one more unit of them increases
Price vs. Quantity Inverse Relationship -Correct Answer ✔-As the price rises, quantity
demanded goes down. As the price decreases, the quantity demanded goes up.
Other Factors Affecting Demand -Correct Answer ✔-Prices of Substitutes(PS^, D^),
Price Expectations(PE^, D^), Prices of complements (PC^, Dv), Income (Y^, D^), Tastes
and Preferences(TP^, D^). (inverse applies to all)
A Change in Demand -Correct Answer ✔-This means a shift of the ENTIRE demand
curve. Caused by any change in a determinant EXCEPT price which only changes
quantity demanded.
A Change in The Quantity Demanded -Correct Answer ✔-This means a shift along the
demand curve. A change in the quantity demanded is caused by a change in price.
Price Controls -Correct Answer ✔-government-mandated minimum or maximum prices
that may be charged for goods and services. Designed to keep prices down. Price floors
(no lower than) and price ceilings (no higher than).
Market Equilibrium -Correct Answer ✔-a situation in which quantity demanded equals
quantity supplied
Econ 202
Econ 202 Final Exam Questions and
Answers Graded A+ 2026
What is economics? -Correct Answer ✔-The study of how people make choices.
Macroeconomics -Correct Answer ✔-Looks at the economy as a whole, focusing on
issues such as growth, unemployment, inflation, and business cycles
Microeconomics -Correct Answer ✔-the branch of economics that studies the economy
of consumers or households or individual firms
Scarcity -Correct Answer ✔-limited quantities of resources to meet unlimited wants
Opportunity Cost -Correct Answer ✔-the thing you give up when you decide to do or
have something else
Positive Economics -Correct Answer ✔-the part of economics involving what are
established facts; the analysis of facts or data to establish scientific generalizations
about economic behavior
Normative Economics -Correct Answer ✔-Judgments about "what ought to be" in
economic matters.
Specialization -Correct Answer ✔-Workers concentrate on producing those goods and
services for which they have a competitive advantage
The Factors of Production -Correct Answer ✔-Land, labor*, and capital-- the 3 things
required for any kind of economic production. *Entrepreneurs (risk-takers)
The Role of Money in Production -Correct Answer ✔-Helps speed up transactions in the
economy. Instead of trading someone for another product they might not necessaryily
need. Keeps economy running.
The Supply of Factors of Production -Correct Answer ✔-How much land, labor and
capital one owns or is able to use to produce
Assumptions Underlying the Production Possibilities Curve -Correct Answer ✔-
Economic Efficiency (Whether all resources are being used to their fullest advantage for
the demand of the economy), Fully Employed Resources (Whether or not all the
resources are being used without and waste), A finite amount of factors of production
(You only have so much land, labor and capital to use and can't produce outside of that
range)
Econ 202
, Econ 202
Technology and the Production Possibilities Curve -Correct Answer ✔-Advances in
technology mean the production possibilities curve shifts outward and more units of one
or more resources can now be made
Production and Economic Growth -Correct Answer ✔-More things are produced and
therefore more things are bought.
Comparative advantage and the combinations of goods on the production possibilities
curve -Correct Answer ✔-Comparative advantage causes nations to operate on their
production possibilities curves
Points Representing Combinations of Goods Produced and what they Represent in
relationship to the production possibilities curve -Correct Answer ✔-Points on the
production possibilities curve represent an economy producing as much as they can.
Points under the curve represent producing less than is possible and points above
represent a quantity that is not possible to produce with the current Factors of
Production
The Law of Demand -Correct Answer ✔-other things remaining equal, people will
purchase a smaller quantity of the goods or services they want as the cost of
purchasing one more unit of them increases
Price vs. Quantity Inverse Relationship -Correct Answer ✔-As the price rises, quantity
demanded goes down. As the price decreases, the quantity demanded goes up.
Other Factors Affecting Demand -Correct Answer ✔-Prices of Substitutes(PS^, D^),
Price Expectations(PE^, D^), Prices of complements (PC^, Dv), Income (Y^, D^), Tastes
and Preferences(TP^, D^). (inverse applies to all)
A Change in Demand -Correct Answer ✔-This means a shift of the ENTIRE demand
curve. Caused by any change in a determinant EXCEPT price which only changes
quantity demanded.
A Change in The Quantity Demanded -Correct Answer ✔-This means a shift along the
demand curve. A change in the quantity demanded is caused by a change in price.
Price Controls -Correct Answer ✔-government-mandated minimum or maximum prices
that may be charged for goods and services. Designed to keep prices down. Price floors
(no lower than) and price ceilings (no higher than).
Market Equilibrium -Correct Answer ✔-a situation in which quantity demanded equals
quantity supplied
Econ 202
