Microeconomics (EC 201) Final Exam
Questions and Answers (Top Grade
Assured) 2026 Update
Which of the following statements is true?
a. Resources are no longer scarce in industrialized nations
like the United States.
b. Bc environmental protection results in social benefits, the
OC of devoting more resources to protecting the environment
will be zero.
c. Devoting fewer resources to the production of military
goods allows for an increase in the production of other goods
and services.
d. A reduction in defense spending implies a decrease in a
nation's productive resources. - Correct Answers ✅c.
Devoting fewer resources to the production of military goods
allows for an increase in the production of other goods and
services.
Which of the following can decrease the OC of attending
college?
a. A decrease in the cost of renting an apartment.
b. A decrease in the wages and job opportunities available to
HS graduates.
c. An increase in salaries offered to college grads.
,Microeconomics (EC 201) Final Exam
Questions and Answers (Top Grade
Assured) 2026 Update
d. An decrease in price of food. - Correct Answers ✅b. A
decrease in the wages and job opportunities available to HS
graduates.
If all productive resources are fully and efficiently employed
in a nation and technology is fixed this year, then
a. it is possible to increase national production of medical
services this year.
b. it is possible to increase national production of medical
services without decreasing the production of other goods or
services this year.
c. it is possible to increase the production of medical services,
but only by decreasing the production the production of other
goods.
d. the production of medical services cannot be increased or
decreased during the year. - Correct Answers ✅d. the
production of medical services cannot be increased or
decreased during the year.
A production possibilities curve shows
a. how the amount of resources available to a nation varies
over time.
, Microeconomics (EC 201) Final Exam
Questions and Answers (Top Grade
Assured) 2026 Update
b. how a fixed amount of output can be produced with
varying amounts of economic resources.
c. feasible combinations of two different goods that can be
produced with available resources and given current
technology.
d. how a consumer's budget can be allocated to buy two
different goods. - Correct Answers ✅c. feasible
combinations of two different goods that can be produced
with available resources and given current technology.
The law of increasing OC states that
a. the OC of each additional unit of output of a good over a
period of time decreases as more of that good is produced.
b. increasing resource prices are inevitable bc of scarcity.
c. the OC of each additional unit of output of a good over a
period of time increases as more of that good is produced.
d. resources are easily adaptable to the production of any
good, economic growth is always associated with inflation. -
Correct Answers ✅c. the OC of each additional unit of
output of a good over a period of time INCREASES as more of
that good is produced.
(The stakes get higher.)
Questions and Answers (Top Grade
Assured) 2026 Update
Which of the following statements is true?
a. Resources are no longer scarce in industrialized nations
like the United States.
b. Bc environmental protection results in social benefits, the
OC of devoting more resources to protecting the environment
will be zero.
c. Devoting fewer resources to the production of military
goods allows for an increase in the production of other goods
and services.
d. A reduction in defense spending implies a decrease in a
nation's productive resources. - Correct Answers ✅c.
Devoting fewer resources to the production of military goods
allows for an increase in the production of other goods and
services.
Which of the following can decrease the OC of attending
college?
a. A decrease in the cost of renting an apartment.
b. A decrease in the wages and job opportunities available to
HS graduates.
c. An increase in salaries offered to college grads.
,Microeconomics (EC 201) Final Exam
Questions and Answers (Top Grade
Assured) 2026 Update
d. An decrease in price of food. - Correct Answers ✅b. A
decrease in the wages and job opportunities available to HS
graduates.
If all productive resources are fully and efficiently employed
in a nation and technology is fixed this year, then
a. it is possible to increase national production of medical
services this year.
b. it is possible to increase national production of medical
services without decreasing the production of other goods or
services this year.
c. it is possible to increase the production of medical services,
but only by decreasing the production the production of other
goods.
d. the production of medical services cannot be increased or
decreased during the year. - Correct Answers ✅d. the
production of medical services cannot be increased or
decreased during the year.
A production possibilities curve shows
a. how the amount of resources available to a nation varies
over time.
, Microeconomics (EC 201) Final Exam
Questions and Answers (Top Grade
Assured) 2026 Update
b. how a fixed amount of output can be produced with
varying amounts of economic resources.
c. feasible combinations of two different goods that can be
produced with available resources and given current
technology.
d. how a consumer's budget can be allocated to buy two
different goods. - Correct Answers ✅c. feasible
combinations of two different goods that can be produced
with available resources and given current technology.
The law of increasing OC states that
a. the OC of each additional unit of output of a good over a
period of time decreases as more of that good is produced.
b. increasing resource prices are inevitable bc of scarcity.
c. the OC of each additional unit of output of a good over a
period of time increases as more of that good is produced.
d. resources are easily adaptable to the production of any
good, economic growth is always associated with inflation. -
Correct Answers ✅c. the OC of each additional unit of
output of a good over a period of time INCREASES as more of
that good is produced.
(The stakes get higher.)
