ECN 212 PRACTICE SOLUTION PACK
2026 COMPLETE TESTED QUESTIONS
AND CORRECT ANSWERS GRADED
A+
◉ Wants are. Answer: unlimited
◉ 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
◉ 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
,◉ 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
◉ 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
◉ Which situation reflects a concern about equality rather than
efficiency? A. Reducing unemployment B. Producing more goods with
fewer resources C. Narrowing the income gap D. Increasing GDP.
Answer: C. Narrowing the income gap
◉ Positive: Describes what __.. Answer: is
◉ Normative: Describes what __________. Answer: should be
◉ Positive can be tested with _____.. Answer: data
, ◉ Normative involves _____.. Answer: values or opinions
◉ Label each as positive or normative. Inflation increased last year..
Answer: positive
◉ Label each as positive or normative. Inflation is too high.. Answer:
normative
◉ Label each as positive or normative. Minimum wage should be
higher.. Answer: normative
◉ Label each as positive or normative. Raising minimum wage
increases labor costs.. Answer: positive
◉ Which of the following is a positive statement? A. College tuition
should be lower B. Rent control is unfair to landlords C. Raising interest
rates reduces investment D. The government must fix inequality.
Answer: C. Raising interest rates reduces investment
◉ Which word most strongly signals a normative statement? A.
Increases B. Causes C. Reduces D. Should. Answer: D. Should
◉ If two economists completely disagree about a statement, is it more
likely positive or normative?. Answer: normative
2026 COMPLETE TESTED QUESTIONS
AND CORRECT ANSWERS GRADED
A+
◉ Wants are. Answer: unlimited
◉ 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
◉ 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
,◉ 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
◉ 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
◉ Which situation reflects a concern about equality rather than
efficiency? A. Reducing unemployment B. Producing more goods with
fewer resources C. Narrowing the income gap D. Increasing GDP.
Answer: C. Narrowing the income gap
◉ Positive: Describes what __.. Answer: is
◉ Normative: Describes what __________. Answer: should be
◉ Positive can be tested with _____.. Answer: data
, ◉ Normative involves _____.. Answer: values or opinions
◉ Label each as positive or normative. Inflation increased last year..
Answer: positive
◉ Label each as positive or normative. Inflation is too high.. Answer:
normative
◉ Label each as positive or normative. Minimum wage should be
higher.. Answer: normative
◉ Label each as positive or normative. Raising minimum wage
increases labor costs.. Answer: positive
◉ Which of the following is a positive statement? A. College tuition
should be lower B. Rent control is unfair to landlords C. Raising interest
rates reduces investment D. The government must fix inequality.
Answer: C. Raising interest rates reduces investment
◉ Which word most strongly signals a normative statement? A.
Increases B. Causes C. Reduces D. Should. Answer: D. Should
◉ If two economists completely disagree about a statement, is it more
likely positive or normative?. Answer: normative
