1
AGEC 105 Final Questions with Answers (100% Correct
Answers)
Economics is the study of Answer: choice under conditions of scarcity
What an economic decision maker must give up when choosing one
economic activity over others is known as the Answer: opportunity
cost
High-income people will sometimes pay higher prices at convenience
stores for goods that are available at discount stores. They do this
because Answer: crowded and understaffed discount stores impose
higher time costs
When individuals come together to buy and sell goods and services,
they form a Answer: market
An agribusiness firm may undertake three alternatives:
-buy cane sugar and manufacture various sugars and sweets, making a
profit of $12 million or
-buy corn and produce ethanol, making a profit of $16 million or
© 2025 All rights reserved
, 2
-Buy wheat and produce breads, rolls, and pastries making a profit of
$13 million
The opportunity cost associated with the 3 choices is: Answer: $13
million
An increase in the price of a good results in a Answer: decrease in
quantity demanded.
When there is a change in demand, Answer: there is a shift of the
demand curve
Sam graduates from college, where he earned $2000 a year working
part-time, and takes a job as an accountant, where he now earns
$25,000 per year. After receiving his first paycheck, he gave away his
bicycle and purchased a new car. Therefore: Answer: Bicycles are not a
normal good for Sam and are likely to be inferior.
Which of the following sets of goods are most likely to be
complementary goods? Answer: Baseballs and baseball gloves.
If buyers tastes and preferences shift in favor of a good, the result is:
Answer: An increase in demand
© 2025 All rights reserved
AGEC 105 Final Questions with Answers (100% Correct
Answers)
Economics is the study of Answer: choice under conditions of scarcity
What an economic decision maker must give up when choosing one
economic activity over others is known as the Answer: opportunity
cost
High-income people will sometimes pay higher prices at convenience
stores for goods that are available at discount stores. They do this
because Answer: crowded and understaffed discount stores impose
higher time costs
When individuals come together to buy and sell goods and services,
they form a Answer: market
An agribusiness firm may undertake three alternatives:
-buy cane sugar and manufacture various sugars and sweets, making a
profit of $12 million or
-buy corn and produce ethanol, making a profit of $16 million or
© 2025 All rights reserved
, 2
-Buy wheat and produce breads, rolls, and pastries making a profit of
$13 million
The opportunity cost associated with the 3 choices is: Answer: $13
million
An increase in the price of a good results in a Answer: decrease in
quantity demanded.
When there is a change in demand, Answer: there is a shift of the
demand curve
Sam graduates from college, where he earned $2000 a year working
part-time, and takes a job as an accountant, where he now earns
$25,000 per year. After receiving his first paycheck, he gave away his
bicycle and purchased a new car. Therefore: Answer: Bicycles are not a
normal good for Sam and are likely to be inferior.
Which of the following sets of goods are most likely to be
complementary goods? Answer: Baseballs and baseball gloves.
If buyers tastes and preferences shift in favor of a good, the result is:
Answer: An increase in demand
© 2025 All rights reserved
