Econ 202 Final CSU questions well
answered 2025/2026
Economics is the study of:
a. How to determine the fairest distribution of income
b. how to solve supply and demand equations to predict market prices
c. how to increase an economies rate of growth
d. how societies allocate scarce resources to satisfy human wants - correct answer ✔✔D
If we say "A causes B, ceteris paribus," we mean:
a. A causes B, and B causes A.
b.A causes B, and everything else stays constant.
c.A causes B, if everything else stays constant.
d.A causes B, if nothing else stays constant. - correct answer ✔✔C
The "circular flow" diagram of a private market economy shows:
A. How market economies usually have "boom and bust" cycles.
B. How government redistributes resources from firms to households or vice versa.
C. How prices in certain markets tend to rise and fall in predictable cycles.
D. How households supply resources to firms in exchange for income, and how firms supply
goods and services in exchange for revenues. - correct answer ✔✔D
Consider the following information about labor requirements for the production of two goods in
two different countries. Hours of labor required to produce:
1 BARREL OF OIL ... in the U.S.: 15 hours ... in Mexico: 10 hours
,1 BUSHEL OF CORN ... in the U.S.: 30 hours ... in Mexico: 30 hours
Using this same information, which statement is correct?
A. The U.S. has an absolute advantage in oil production.
B.The U.S. has an absolute advantage in corn production.
C.Mexico has a comparative advantage in oil production.
D. The U.S. has a comparative advantage in oil production - correct answer ✔✔C
Consider the following information about labor requirements for the production of two goods in
two different countries. Hours of labor required to produce:
1 BARREL OF OIL ... in the U.S.: 15 hours ... in Mexico: 10 hours
1 BUSHEL OF CORN ... in the U.S.: 30 hours ... in Mexico: 30 hours
What is the opportunity cost of producing a bushel of corn in Mexico?
A. 1 barrel of oil.
B. 2 barrels of oil.
C. 3 barrels of oil.
D. 10 barrels of oil. - correct answer ✔✔C
Consider the following information about labor requirements for the production of two goods in
two different countries. Hours of labor required to produce:
1 BARREL OF OIL ... in the U.S.: 15 hours ... in Mexico: 10 hours
1 BUSHEL OF CORN ... in the U.S.: 30 hours ... in Mexico: 30 hours
,In this same situation, if these two countries decide to specialize and trade, then:
A.Mexico will specialize in producing corn.
B,Mexico will import oil.
C.The U.S. will import corn.
D. The U.S. will specialize in producing corn. - correct answer ✔✔D
Consider the following information about labor requirements for the production of two goods in
two different countries. Hours of labor required to produce:
1 BARREL OF OIL ... in the U.S.: 15 hours ... in Mexico: 10 hours
1 BUSHEL OF CORN ... in the U.S.: 30 hours ... in Mexico: 30 hours
This is the last question that uses this table of information. If these two countries are to trade
willingly, how many barrels of oil will be traded for each bushel of corn?
A. Between 1/3 and ½..
B. Between ½ and 2.
C. Between 2 and 3.
D. Between 10 and 15. - correct answer ✔✔C
Which is the best economic explanation of why countries usually do NOT specialize completely
in just one good, in the real world?
A. Realistically, trade is based more on relative benefits than on relative costs.
B. As countries become more affluent, the scarcity problem disappears, so there is less
reason to trade.
C. The marginal opportunity cost starts to become too high as they produce more and more
, of a particular good.
D. In the real world, most countries' production possibilities curves are straight lines instead
of bowed out curves. - correct answer ✔✔C
In the relationship illustrated by a demand curve, which variable is the dependent variable?
A.The price of the good
B.Consumer income
C. Consumer preferences
D.Quantity demanded of the good - correct answer ✔✔D
Other things constant, which of the following would cause the demand curve for a normal good
to shift to the right?
A. A decrease in the price of the good.
B. A decrease in consumer income.
C. An increase in the supply of the good.
D. An increase in the price of a substitute good. - correct answer ✔✔D
The consumers' demand curve for a good does NOT depend on:
A Consumer tastes
B Consumer income
C Prices of resources used to make the good
D Prices of substitute goods - correct answer ✔✔C
If the demand curve for a good shifts to the left, equilibrium price will:
A. fall and cause quantity supplied to fall.
B.fall and cause quantity supplied to rise.
answered 2025/2026
Economics is the study of:
a. How to determine the fairest distribution of income
b. how to solve supply and demand equations to predict market prices
c. how to increase an economies rate of growth
d. how societies allocate scarce resources to satisfy human wants - correct answer ✔✔D
If we say "A causes B, ceteris paribus," we mean:
a. A causes B, and B causes A.
b.A causes B, and everything else stays constant.
c.A causes B, if everything else stays constant.
d.A causes B, if nothing else stays constant. - correct answer ✔✔C
The "circular flow" diagram of a private market economy shows:
A. How market economies usually have "boom and bust" cycles.
B. How government redistributes resources from firms to households or vice versa.
C. How prices in certain markets tend to rise and fall in predictable cycles.
D. How households supply resources to firms in exchange for income, and how firms supply
goods and services in exchange for revenues. - correct answer ✔✔D
Consider the following information about labor requirements for the production of two goods in
two different countries. Hours of labor required to produce:
1 BARREL OF OIL ... in the U.S.: 15 hours ... in Mexico: 10 hours
,1 BUSHEL OF CORN ... in the U.S.: 30 hours ... in Mexico: 30 hours
Using this same information, which statement is correct?
A. The U.S. has an absolute advantage in oil production.
B.The U.S. has an absolute advantage in corn production.
C.Mexico has a comparative advantage in oil production.
D. The U.S. has a comparative advantage in oil production - correct answer ✔✔C
Consider the following information about labor requirements for the production of two goods in
two different countries. Hours of labor required to produce:
1 BARREL OF OIL ... in the U.S.: 15 hours ... in Mexico: 10 hours
1 BUSHEL OF CORN ... in the U.S.: 30 hours ... in Mexico: 30 hours
What is the opportunity cost of producing a bushel of corn in Mexico?
A. 1 barrel of oil.
B. 2 barrels of oil.
C. 3 barrels of oil.
D. 10 barrels of oil. - correct answer ✔✔C
Consider the following information about labor requirements for the production of two goods in
two different countries. Hours of labor required to produce:
1 BARREL OF OIL ... in the U.S.: 15 hours ... in Mexico: 10 hours
1 BUSHEL OF CORN ... in the U.S.: 30 hours ... in Mexico: 30 hours
,In this same situation, if these two countries decide to specialize and trade, then:
A.Mexico will specialize in producing corn.
B,Mexico will import oil.
C.The U.S. will import corn.
D. The U.S. will specialize in producing corn. - correct answer ✔✔D
Consider the following information about labor requirements for the production of two goods in
two different countries. Hours of labor required to produce:
1 BARREL OF OIL ... in the U.S.: 15 hours ... in Mexico: 10 hours
1 BUSHEL OF CORN ... in the U.S.: 30 hours ... in Mexico: 30 hours
This is the last question that uses this table of information. If these two countries are to trade
willingly, how many barrels of oil will be traded for each bushel of corn?
A. Between 1/3 and ½..
B. Between ½ and 2.
C. Between 2 and 3.
D. Between 10 and 15. - correct answer ✔✔C
Which is the best economic explanation of why countries usually do NOT specialize completely
in just one good, in the real world?
A. Realistically, trade is based more on relative benefits than on relative costs.
B. As countries become more affluent, the scarcity problem disappears, so there is less
reason to trade.
C. The marginal opportunity cost starts to become too high as they produce more and more
, of a particular good.
D. In the real world, most countries' production possibilities curves are straight lines instead
of bowed out curves. - correct answer ✔✔C
In the relationship illustrated by a demand curve, which variable is the dependent variable?
A.The price of the good
B.Consumer income
C. Consumer preferences
D.Quantity demanded of the good - correct answer ✔✔D
Other things constant, which of the following would cause the demand curve for a normal good
to shift to the right?
A. A decrease in the price of the good.
B. A decrease in consumer income.
C. An increase in the supply of the good.
D. An increase in the price of a substitute good. - correct answer ✔✔D
The consumers' demand curve for a good does NOT depend on:
A Consumer tastes
B Consumer income
C Prices of resources used to make the good
D Prices of substitute goods - correct answer ✔✔C
If the demand curve for a good shifts to the left, equilibrium price will:
A. fall and cause quantity supplied to fall.
B.fall and cause quantity supplied to rise.
