ECON 247 CERTIFICATION FINAL PAPER 2026 COMPLETE QUESTIONS AND ANSWER

ECON 247 CERTIFICATION FINAL PAPER 2026
COMPLETE QUESTIONS AND ANSWERS

◉ Equity vs Efficiency Trade-Off. Answer: Fairness may reduce total
economic surplus.


◉ Positive Analysis. Answer: Statement based on facts and cause-
and-effect.


◉ Normative Analysis. Answer: Statement based on opinions or
values.


◉ Centrally Planned Economy. Answer: Government makes
production and pricing decisions.


◉ Market Economy. Answer: Individuals and firms make economic
decisions.


◉ Mixed Market Economy. Answer: Combination of market forces
and government intervention.


◉ Market. Answer: Group of buyers and sellers exchanging goods or
services.

, ◉ Law of Demand. Answer: When price rises, quantity demanded
falls (ceteris paribus).


◉ Movement Along Demand Curve. Answer: Caused only by a
change in price.


◉ Shift of Demand Curve. Answer: Caused by a change in income,
tastes, prices of related goods, expectations, or number of buyers.


◉ Determinants of Demand. Answer: Income, tastes, related goods
prices, expectations, number of buyers.


◉ Normal Good. Answer: Income increases → demand increases.


◉ Inferior Good. Answer: Income increases → demand decreases.


◉ Substitutes (Consumption). Answer: Goods used in place of each
other (Coke & Pepsi).


◉ Complements (Consumption). Answer: Goods used together (Cars
& Gas).