ECON 202 OLE MISS MCGINNESS FINAL ACTUAL EXAM 2026/2027 | ALL QUESTIONS
AND CORRECT DETAILED ANSWERS | ALREADY A GRADED WITH EXPERT FEEDBACK
| NEW AND REVISED
University of Mississippi (Ole Miss) ECON 202 Principles of Macroeconomics Final
Examination – Professor McGinness
Core Domains: Supply & Demand Analysis, Market Equilibrium & Welfare, Elasticity Concepts,
Production & Cost Theory, Perfect Competition, Monopoly & Monopolistic Competition, Oligopoly &
Game Theory, Labor Markets & Resource Pricing, Externalities & Public Goods, and Macroeconomic
Foundations | Undergraduate Economics Focus | Comprehensive Final Assessment
Exam Structure
The ECON 202 Ole Miss McGinness Final Exam for the 2026/2027 academic cycle is a comprehensive,
80-question proctored assessment covering microeconomic and macroeconomic principles. The exam
includes multiple-choice questions, graphical analysis, and scenario-based applications designed to
evaluate mastery of economic theory and real-world problem-solving skills.
Introduction
This ECON 202 Ole Miss McGinness Final Exam guide for the 2026/2027 academic year provides the
newly revised, expert-graded actual exam questions with correct detailed answers. It ensures
comprehensive preparation by covering fundamental economic concepts, market structures, production
theory, labor economics, and the application of economic reasoning to policy issues—essential for success
in Professor McGinness's course and a solid foundation in economic principles.
Answer Format
All correct economic principles, graphical interpretations, and analytical conclusions must be presented in
bold and green, followed by expert rationales that explain the underlying economic theory,
mathematical relationships, and real-world applications that justify each answer, incorporating Professor
McGinness's teaching emphasis on intuitive understanding and practical application.
80 Multiple Choice Questions (MCQ)
1. Supply & Demand Analysis
1. If the price of a complement good decreases, what happens to the demand curve for the
primary good?
A. Shifts left
, B. Shifts right
C. Moves along the curve downward
D. Moves along the curve upward
B. Shifts right
When the price of a complement good decreases, the quantity demanded of the primary good increases,
shifting its demand curve to the right. For example, if the price of printers (a complement to ink
cartridges) falls, demand for ink cartridges rises.
2. Which of the following would cause a movement along the demand curve for a normal
good?
A. Change in consumer income
B. Change in the price of a substitute
C. Change in the price of the good itself
D. Change in consumer preferences
C. Change in the price of the good itself
A change in the price of the good itself causes a movement along the demand curve (change in quantity
demanded), while changes in income, preferences, or prices of related goods shift the entire curve.
3. If the market price is above the equilibrium price, what is the result?
A. Shortage
B. Surplus
C. Equilibrium
, D. Price ceiling
B. Surplus
Price
^
| S
| \
| \
| * Surplus
| \
| \
|______D__________> Quantity
When the market price is above equilibrium, quantity supplied exceeds quantity demanded, creating a
surplus.
4. Which of the following is NOT a determinant of supply?
A. Technology
B. Input prices
C. Consumer preferences
D. Number of sellers
C. Consumer preferences
Consumer preferences affect demand, not supply. Supply is determined by production costs, technology,
input prices, and the number of sellers.
5. If the government imposes a price floor below the equilibrium price, what is the effect on
the market?
A. Shortage
, B. Surplus
C. No effect
D. Black market
C. No effect
A price floor below the equilibrium price has no effect because the market price is already above the
floor. Price floors only matter if set above equilibrium.
2. Elasticity Concepts
6. If the price elasticity of demand is 0.5, a 10% increase in price will lead to a:
A. 50% decrease in quantity demanded
B. 5% decrease in quantity demanded
C. 0.5% decrease in quantity demanded
D. 20% decrease in quantity demanded
B. 5% decrease in quantity demanded
Price elasticity of demand (PED) = % change in quantity demanded / % change in price. Here, 0.5 = x /
10%, so x = 5%.
7. Which of the following goods is most likely to have an inelastic demand?
A. Luxury cars
B. Insulin
C. Vacation packages
D. Designer clothing
AND CORRECT DETAILED ANSWERS | ALREADY A GRADED WITH EXPERT FEEDBACK
| NEW AND REVISED
University of Mississippi (Ole Miss) ECON 202 Principles of Macroeconomics Final
Examination – Professor McGinness
Core Domains: Supply & Demand Analysis, Market Equilibrium & Welfare, Elasticity Concepts,
Production & Cost Theory, Perfect Competition, Monopoly & Monopolistic Competition, Oligopoly &
Game Theory, Labor Markets & Resource Pricing, Externalities & Public Goods, and Macroeconomic
Foundations | Undergraduate Economics Focus | Comprehensive Final Assessment
Exam Structure
The ECON 202 Ole Miss McGinness Final Exam for the 2026/2027 academic cycle is a comprehensive,
80-question proctored assessment covering microeconomic and macroeconomic principles. The exam
includes multiple-choice questions, graphical analysis, and scenario-based applications designed to
evaluate mastery of economic theory and real-world problem-solving skills.
Introduction
This ECON 202 Ole Miss McGinness Final Exam guide for the 2026/2027 academic year provides the
newly revised, expert-graded actual exam questions with correct detailed answers. It ensures
comprehensive preparation by covering fundamental economic concepts, market structures, production
theory, labor economics, and the application of economic reasoning to policy issues—essential for success
in Professor McGinness's course and a solid foundation in economic principles.
Answer Format
All correct economic principles, graphical interpretations, and analytical conclusions must be presented in
bold and green, followed by expert rationales that explain the underlying economic theory,
mathematical relationships, and real-world applications that justify each answer, incorporating Professor
McGinness's teaching emphasis on intuitive understanding and practical application.
80 Multiple Choice Questions (MCQ)
1. Supply & Demand Analysis
1. If the price of a complement good decreases, what happens to the demand curve for the
primary good?
A. Shifts left
, B. Shifts right
C. Moves along the curve downward
D. Moves along the curve upward
B. Shifts right
When the price of a complement good decreases, the quantity demanded of the primary good increases,
shifting its demand curve to the right. For example, if the price of printers (a complement to ink
cartridges) falls, demand for ink cartridges rises.
2. Which of the following would cause a movement along the demand curve for a normal
good?
A. Change in consumer income
B. Change in the price of a substitute
C. Change in the price of the good itself
D. Change in consumer preferences
C. Change in the price of the good itself
A change in the price of the good itself causes a movement along the demand curve (change in quantity
demanded), while changes in income, preferences, or prices of related goods shift the entire curve.
3. If the market price is above the equilibrium price, what is the result?
A. Shortage
B. Surplus
C. Equilibrium
, D. Price ceiling
B. Surplus
Price
^
| S
| \
| \
| * Surplus
| \
| \
|______D__________> Quantity
When the market price is above equilibrium, quantity supplied exceeds quantity demanded, creating a
surplus.
4. Which of the following is NOT a determinant of supply?
A. Technology
B. Input prices
C. Consumer preferences
D. Number of sellers
C. Consumer preferences
Consumer preferences affect demand, not supply. Supply is determined by production costs, technology,
input prices, and the number of sellers.
5. If the government imposes a price floor below the equilibrium price, what is the effect on
the market?
A. Shortage
, B. Surplus
C. No effect
D. Black market
C. No effect
A price floor below the equilibrium price has no effect because the market price is already above the
floor. Price floors only matter if set above equilibrium.
2. Elasticity Concepts
6. If the price elasticity of demand is 0.5, a 10% increase in price will lead to a:
A. 50% decrease in quantity demanded
B. 5% decrease in quantity demanded
C. 0.5% decrease in quantity demanded
D. 20% decrease in quantity demanded
B. 5% decrease in quantity demanded
Price elasticity of demand (PED) = % change in quantity demanded / % change in price. Here, 0.5 = x /
10%, so x = 5%.
7. Which of the following goods is most likely to have an inelastic demand?
A. Luxury cars
B. Insulin
C. Vacation packages
D. Designer clothing
