Econ 101 [ACTUAL EXAM ] LATEST
VERSION [QUESTIONS AND ANSWERS]
DETAILED AND VERIFIED FOR GUARANTEED
PASS- LATEST UPDATE 2025 GRADED A
(BRAND NEW!!)
The market demand for a product will shift to the right when the price
of a substitute good increases/decreases; the price of a
complementary good increases/decreases; consumer income
increases/decreases; the population increases/decreases. -
CORRECT ANSWER ✔✔✔✔✔ increases; decreases; increases;
increases
An increase in demand for a product increases/decreases the
equilibrium price and increases/decreases the equilibrium quantity. -
CORRECT ANSWER ✔✔✔✔✔ increases; decreases
A change in supply causes a movement along/shift of the supply
curve. - CORRECT ANSWER ✔✔✔✔✔ shift of
A change in the quantity supplied causes a movement along/shift of
the supple curve. - CORRECT ANSWER ✔✔✔✔✔ movement along
Which of the following variables change as we move along the supply
curve for pencils?
-quantity of pencils supplied
-price of wood
-price of pencils
-production technology - CORRECT ANSWER ✔✔✔✔✔ -quantity of
pencils supplied
,-price of pencils
If both demand and supply increase simultaneously, the equilibrium
price will increase if the change in demand/supply is relatively large. -
CORRECT ANSWER ✔✔✔✔✔ demand
If supply increases while demand decreases, the equilibrium price will
increase/decrease. - CORRECT ANSWER ✔✔✔✔✔ decrease
If supply increases while demand decreases, the equilibrium quantity
will decrease if the change in demand/supply is relatively large. -
CORRECT ANSWER ✔✔✔✔✔ demand
When demand/supply changes, the equilibrium price and the
equilibrium quantity change in the same direction. - CORRECT
ANSWER ✔✔✔✔✔ demand
When demand/supply changes, the equilibrium price and the
equilibrium quantity change in opposite directions. - CORRECT
ANSWER ✔✔✔✔✔ supply
(T/F) As your income increases, demand for all goods increases. -
CORRECT ANSWER ✔✔✔✔✔ Fasle; inferior goods (ex: Ramen
noodles--when income increases, you generally buy less ramen
noodles.)
Demand and Supply--Law of Demand and Supply - CORRECT
ANSWER ✔✔✔✔✔ Negative/positive relationship between quantity
demanded/supplied, ceteris paribus.
Perfect Competition - CORRECT ANSWER ✔✔✔✔✔ Prices are given,
large numbers of buyers and sellers, product homogeneity, no
barriers to entry.
Equilibrium - CORRECT ANSWER ✔✔✔✔✔ Price-quantity pair for
which both buyers and sellers are satisfied.
, Excess demand & Supply (Shortage & Surplus) - CORRECT ANSWER
✔✔✔✔✔ Automatic adjustment towards equilibrium.
What causes a movement along the demand curve? - CORRECT
ANSWER ✔✔✔✔✔ A change in price
What causes a shift of the demand curve? - CORRECT ANSWER
✔✔✔✔✔ ^ consumer income
^ population (increases demand)
^change in taste/preference
substitute goods (price ^)
complementary goods (price decrease)
The market demand curve is the horizontal/vertical sum of the
individual demand curves. - CORRECT ANSWER ✔✔✔✔✔ horizontal
A decrease in the supply of a product increases/decreases the
equilibrium price and increases/decreases the equilibrium quantity. -
CORRECT ANSWER ✔✔✔✔✔ increases; decreases
A change in demand causes a movement along/shift of the demand
curve. - CORRECT ANSWER ✔✔✔✔✔ shift of
A change in quantity causes a movement along/shift of the demand
curve. - CORRECT ANSWER ✔✔✔✔✔ movement along
Different people eat different amounts of food when they go to buffet
restaurants, even though they all pay the same price. Explain how this
relates to the marginal principle. - CORRECT ANSWER ✔✔✔✔✔ The
marginal monetary cost of eating more is zero, so people will eat until
they would not enjoy eating another bite. There is an implicit cost of
eating more once you are full (extra weight and physical discomfort).
Therefore, people will eat until marginal benefit equals marginal cost,
and this will occur at different amounts of food for different people.
When a firm hired its tenth worker, its factory output increased by
four units per month. Would you expect the firm's output to increase
by eight more units/month if the firm hired two more workers? -
VERSION [QUESTIONS AND ANSWERS]
DETAILED AND VERIFIED FOR GUARANTEED
PASS- LATEST UPDATE 2025 GRADED A
(BRAND NEW!!)
The market demand for a product will shift to the right when the price
of a substitute good increases/decreases; the price of a
complementary good increases/decreases; consumer income
increases/decreases; the population increases/decreases. -
CORRECT ANSWER ✔✔✔✔✔ increases; decreases; increases;
increases
An increase in demand for a product increases/decreases the
equilibrium price and increases/decreases the equilibrium quantity. -
CORRECT ANSWER ✔✔✔✔✔ increases; decreases
A change in supply causes a movement along/shift of the supply
curve. - CORRECT ANSWER ✔✔✔✔✔ shift of
A change in the quantity supplied causes a movement along/shift of
the supple curve. - CORRECT ANSWER ✔✔✔✔✔ movement along
Which of the following variables change as we move along the supply
curve for pencils?
-quantity of pencils supplied
-price of wood
-price of pencils
-production technology - CORRECT ANSWER ✔✔✔✔✔ -quantity of
pencils supplied
,-price of pencils
If both demand and supply increase simultaneously, the equilibrium
price will increase if the change in demand/supply is relatively large. -
CORRECT ANSWER ✔✔✔✔✔ demand
If supply increases while demand decreases, the equilibrium price will
increase/decrease. - CORRECT ANSWER ✔✔✔✔✔ decrease
If supply increases while demand decreases, the equilibrium quantity
will decrease if the change in demand/supply is relatively large. -
CORRECT ANSWER ✔✔✔✔✔ demand
When demand/supply changes, the equilibrium price and the
equilibrium quantity change in the same direction. - CORRECT
ANSWER ✔✔✔✔✔ demand
When demand/supply changes, the equilibrium price and the
equilibrium quantity change in opposite directions. - CORRECT
ANSWER ✔✔✔✔✔ supply
(T/F) As your income increases, demand for all goods increases. -
CORRECT ANSWER ✔✔✔✔✔ Fasle; inferior goods (ex: Ramen
noodles--when income increases, you generally buy less ramen
noodles.)
Demand and Supply--Law of Demand and Supply - CORRECT
ANSWER ✔✔✔✔✔ Negative/positive relationship between quantity
demanded/supplied, ceteris paribus.
Perfect Competition - CORRECT ANSWER ✔✔✔✔✔ Prices are given,
large numbers of buyers and sellers, product homogeneity, no
barriers to entry.
Equilibrium - CORRECT ANSWER ✔✔✔✔✔ Price-quantity pair for
which both buyers and sellers are satisfied.
, Excess demand & Supply (Shortage & Surplus) - CORRECT ANSWER
✔✔✔✔✔ Automatic adjustment towards equilibrium.
What causes a movement along the demand curve? - CORRECT
ANSWER ✔✔✔✔✔ A change in price
What causes a shift of the demand curve? - CORRECT ANSWER
✔✔✔✔✔ ^ consumer income
^ population (increases demand)
^change in taste/preference
substitute goods (price ^)
complementary goods (price decrease)
The market demand curve is the horizontal/vertical sum of the
individual demand curves. - CORRECT ANSWER ✔✔✔✔✔ horizontal
A decrease in the supply of a product increases/decreases the
equilibrium price and increases/decreases the equilibrium quantity. -
CORRECT ANSWER ✔✔✔✔✔ increases; decreases
A change in demand causes a movement along/shift of the demand
curve. - CORRECT ANSWER ✔✔✔✔✔ shift of
A change in quantity causes a movement along/shift of the demand
curve. - CORRECT ANSWER ✔✔✔✔✔ movement along
Different people eat different amounts of food when they go to buffet
restaurants, even though they all pay the same price. Explain how this
relates to the marginal principle. - CORRECT ANSWER ✔✔✔✔✔ The
marginal monetary cost of eating more is zero, so people will eat until
they would not enjoy eating another bite. There is an implicit cost of
eating more once you are full (extra weight and physical discomfort).
Therefore, people will eat until marginal benefit equals marginal cost,
and this will occur at different amounts of food for different people.
When a firm hired its tenth worker, its factory output increased by
four units per month. Would you expect the firm's output to increase
by eight more units/month if the firm hired two more workers? -
