ECON EXAM 2025 WITH 100%
CORRECT ANSWERS
You are looking at the market (supply and demand) for hot dog buns. You see in the paper that
the price of hot dogs has increased significantly. As a result, in the market for hot dog buns we
would expect to see... - CORRECT ANSWER✔✔Demand shift left, producing a lower equilibrium
price, and higher equilibrium quantity
Consider these three headlines...
I. Microsoft Lowers the Price of Windows 10
II. U.S. Economy Enters Recession
III. Mergers in the Banking Industry Limit Choices for Customers
Macroeconomics v. Microeconomics - CORRECT ANSWER✔✔
Consider these two statements...
I. The current unemployment rate is 4.3 %
II. The current unemployment rate would be lower if we did not pay unemployment benefits
Normative v. Positive - CORRECT ANSWER✔✔Both are positive statements
You are looking at a country's production possibilities frontier (PPF). The PPF is a straight-line (as
opposed to a curve. If the PPF shifts outward what does the outward shift represent? (assume
the slope of the PPF does not change as it shifts). - CORRECT ANSWER✔✔Economic Growth
Which of the following is correct?
, a) change in tech could either shift the demand or the supply curve
b) change in income could shift either the demand curve or the supply curve
c) a change in the price of inputs could shift either the demand curve or the supply curve
d) a change in expectations could shift either the demand cure or the supply curve - CORRECT
ANSWER✔✔d) a change in expectations could shift either the demand cure or the supply curve
SEE GRAPH UNDER EXAM 1
Which of the following would cause a movement from point J to point K? - CORRECT
ANSWER✔✔This is a normal good and buyer's incomes increased (demand shift right)
SEE GRAPH UNDER EXAM 1
Which of the following could cause a movement from point K to point J? - CORRECT
ANSWER✔✔This is the demand for gasoline and buyers expect the price of gasoline to decrease
in the near future (demand shift left)
Which of the following could cause a movement from point point H to point J? - CORRECT
ANSWER✔✔The price of the good decreased (price change)
Imagine a normal, upward sloping supply curve passing through point J. Which of the following
would cause the supply curve to shift in such a way that we'd end up at pint H? - CORRECT
ANSWER✔✔The number of sellers of this product decreased
This graph essential depicts the Law of Demand. Write down the Law of Demand. - CORRECT
ANSWER✔✔IF the price of a good or service increases, the demand will decrease. If the price of
a good or service decreases, the demand will increase.
CORRECT ANSWERS
You are looking at the market (supply and demand) for hot dog buns. You see in the paper that
the price of hot dogs has increased significantly. As a result, in the market for hot dog buns we
would expect to see... - CORRECT ANSWER✔✔Demand shift left, producing a lower equilibrium
price, and higher equilibrium quantity
Consider these three headlines...
I. Microsoft Lowers the Price of Windows 10
II. U.S. Economy Enters Recession
III. Mergers in the Banking Industry Limit Choices for Customers
Macroeconomics v. Microeconomics - CORRECT ANSWER✔✔
Consider these two statements...
I. The current unemployment rate is 4.3 %
II. The current unemployment rate would be lower if we did not pay unemployment benefits
Normative v. Positive - CORRECT ANSWER✔✔Both are positive statements
You are looking at a country's production possibilities frontier (PPF). The PPF is a straight-line (as
opposed to a curve. If the PPF shifts outward what does the outward shift represent? (assume
the slope of the PPF does not change as it shifts). - CORRECT ANSWER✔✔Economic Growth
Which of the following is correct?
, a) change in tech could either shift the demand or the supply curve
b) change in income could shift either the demand curve or the supply curve
c) a change in the price of inputs could shift either the demand curve or the supply curve
d) a change in expectations could shift either the demand cure or the supply curve - CORRECT
ANSWER✔✔d) a change in expectations could shift either the demand cure or the supply curve
SEE GRAPH UNDER EXAM 1
Which of the following would cause a movement from point J to point K? - CORRECT
ANSWER✔✔This is a normal good and buyer's incomes increased (demand shift right)
SEE GRAPH UNDER EXAM 1
Which of the following could cause a movement from point K to point J? - CORRECT
ANSWER✔✔This is the demand for gasoline and buyers expect the price of gasoline to decrease
in the near future (demand shift left)
Which of the following could cause a movement from point point H to point J? - CORRECT
ANSWER✔✔The price of the good decreased (price change)
Imagine a normal, upward sloping supply curve passing through point J. Which of the following
would cause the supply curve to shift in such a way that we'd end up at pint H? - CORRECT
ANSWER✔✔The number of sellers of this product decreased
This graph essential depicts the Law of Demand. Write down the Law of Demand. - CORRECT
ANSWER✔✔IF the price of a good or service increases, the demand will decrease. If the price of
a good or service decreases, the demand will increase.
