ECN 212 ACTUAL EXAM PAPER 2026
QUESTIONS WITH ANSWERS GRADED
A+
◍ Resources are.
Answer: limited
◍ Which situation exemplifies a shift in supply due to changes in technology?.
Answer: Introduction of a new manufacturing process increasing production
efficiency.
◍ Which of the following describes an oligopoly.
Answer: A market with a limited number of firms competing
◍ Consumer choice theory primarily explores which aspect of economic
behavior?.
Answer: How consumers maximize utility within budget constraints
◍ What defines a surplus in a market?.
Answer: A situation in which quantity supplied is greater than quantity
demanded
◍ In which scenario is consumer choice theory applied?.
Answer: When examining how consumers select products within their
budget
◍ If cheesecake is considered a luxury good, what is likely to happen when
your income increases?.
Answer: You buy more cheesecake and increase your income share spent on
it
◍ Wants are.
Answer: unlimited
,◍ What typically happens to the demand for luxury goods when consumer
incomes rise?.
Answer: Demand increases
◍ What shape is used to calculate deadweight loss?.
Answer: Triangle
◍ Limited and unlimited wants creates.
Answer: scarcity
◍ scarcity forces.
Answer: choices
◍ choices create.
Answer: tradeoffs
◍ trade offs create.
Answer: opportunity cost
◍ Which statement best explains why scarcity exists?
A. Prices are too high
B. People want too much
C. Resources are limited relative to wants
D. Incentives eliminate choices.
Answer: C. Resources are limited relative to wants
◍ What does income elasticity of demand primarily measure?.
Answer: The change in quantity demanded as income changes
◍ How is a common resource characterized?.
Answer: Non-excludable and rivalrous
◍ Which of the following must be true in a world with scarcity?
A. All wants can be satisfied
B. Trade-offs do not exist
C. Opportunity costs exist
D. Resources are unlimited.
Answer: C. Opportunity costs exist
, ◍ If the overall demand in the economy rises, how is the market for inferior
goods likely to be affected?.
Answer: Price is ambiguous and quantity increases
◍ According to the law of supply, what happens when the price of a good
increases?.
Answer: The quantity supplied will also increase
◍ Efficiency.
Answer: getting the most output from limited resources, Getting the
maximum benefit from available resources.
◍ Equality.
Answer: how evenly output/resources are distributed, Distributing economic
benefits fairly across society.
◍ Is this pertaining to equality or efficiency? The economy grows overall →
Wealth concentrates among a few people →.
Answer: efficiency, equality
◍ What is one consequence of externalities?.
Answer: Market inefficiency
◍ What does a demand curve illustrate?.
Answer: The relationship between price and quantity demanded
◍ A policy increases total output in the economy but results in income being
more unevenly distributed. This policy most clearly increases:
A. Equality only
B. Efficiency only
C. Both equality and efficiency
D. Neither equality nor efficiency.
Answer: B. Efficiency only
◍ What happens in the market for rice if the increase in minimum wage has a
greater impact than the decrease in price of spam?.
Answer: Price increases and quantity decreases
QUESTIONS WITH ANSWERS GRADED
A+
◍ Resources are.
Answer: limited
◍ Which situation exemplifies a shift in supply due to changes in technology?.
Answer: Introduction of a new manufacturing process increasing production
efficiency.
◍ Which of the following describes an oligopoly.
Answer: A market with a limited number of firms competing
◍ Consumer choice theory primarily explores which aspect of economic
behavior?.
Answer: How consumers maximize utility within budget constraints
◍ What defines a surplus in a market?.
Answer: A situation in which quantity supplied is greater than quantity
demanded
◍ In which scenario is consumer choice theory applied?.
Answer: When examining how consumers select products within their
budget
◍ If cheesecake is considered a luxury good, what is likely to happen when
your income increases?.
Answer: You buy more cheesecake and increase your income share spent on
it
◍ Wants are.
Answer: unlimited
,◍ What typically happens to the demand for luxury goods when consumer
incomes rise?.
Answer: Demand increases
◍ What shape is used to calculate deadweight loss?.
Answer: Triangle
◍ Limited and unlimited wants creates.
Answer: scarcity
◍ scarcity forces.
Answer: choices
◍ choices create.
Answer: tradeoffs
◍ trade offs create.
Answer: opportunity cost
◍ Which statement best explains why scarcity exists?
A. Prices are too high
B. People want too much
C. Resources are limited relative to wants
D. Incentives eliminate choices.
Answer: C. Resources are limited relative to wants
◍ What does income elasticity of demand primarily measure?.
Answer: The change in quantity demanded as income changes
◍ How is a common resource characterized?.
Answer: Non-excludable and rivalrous
◍ Which of the following must be true in a world with scarcity?
A. All wants can be satisfied
B. Trade-offs do not exist
C. Opportunity costs exist
D. Resources are unlimited.
Answer: C. Opportunity costs exist
, ◍ If the overall demand in the economy rises, how is the market for inferior
goods likely to be affected?.
Answer: Price is ambiguous and quantity increases
◍ According to the law of supply, what happens when the price of a good
increases?.
Answer: The quantity supplied will also increase
◍ Efficiency.
Answer: getting the most output from limited resources, Getting the
maximum benefit from available resources.
◍ Equality.
Answer: how evenly output/resources are distributed, Distributing economic
benefits fairly across society.
◍ Is this pertaining to equality or efficiency? The economy grows overall →
Wealth concentrates among a few people →.
Answer: efficiency, equality
◍ What is one consequence of externalities?.
Answer: Market inefficiency
◍ What does a demand curve illustrate?.
Answer: The relationship between price and quantity demanded
◍ A policy increases total output in the economy but results in income being
more unevenly distributed. This policy most clearly increases:
A. Equality only
B. Efficiency only
C. Both equality and efficiency
D. Neither equality nor efficiency.
Answer: B. Efficiency only
◍ What happens in the market for rice if the increase in minimum wage has a
greater impact than the decrease in price of spam?.
Answer: Price increases and quantity decreases
