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Economics (2026) EXAM QUESTIONS AND ALL
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Terms in this set (286)
The main concept demonstrated in Opportunity cost
the production possibilities frontier
is
When country A has a lower Comparative Advantage
opportunity cost of producing
sugar relative to country B, then
country A is said to have
A graph that shows the Production Possibilities Frontier
combinations of two goods that the
economy can produce given the
available scarce resources and
available technology is called a
,Assume a production possibilities Five Pickup Trucks
frontier for pickup trucks and big
Mac hamburgers. The economy is
producing 20 big Mac hamburgers
and 65 pickup trucks (point 20, 65).
What is the opportunity cost of
producing an additional 20 Big Mac
hamburgers (point 40, 60)?
The opportunity cost of an item is whatever must be given up to obtain the item.
Consider market for pork, suppose Increases
that price of beef, a substitute for
pork, increases. Because of the
change in price of beef, the
equilibrium price of pork...?
Consider the market for pork, Increase because increase in price of beef
suppose that the price of beef, a causes demand curve for pork to shift North East.
substitute for pork, increases. B/c of this shift, the equilibrium quantity of pork
Because of this change in the price will increase.
of beef, the equilibrium quantity of
pork will...?
Consider the market for pork. Decreases because the increase in price of hog
Suppose that the price of hog feed, feed causes the supply curve for pork to shift
an input to the production of pork, NW. B/c of this shift, the quantity of pork
increases. Because of that change decreases.
in the price of hog feed, the
equilibrium quantity of pork ...?
Consider the market for pork. Decreases because the increase in disposable
Suppose that disposable income income causes the demand curve for pork to shift
increases and pork is an inferior south west, because pork is an inferior good.
good. Because of that change in because of this shift, the equilibrium price of pork
income, the equilibrium price of decreases.
pork...?
, Consider the market for pork. Indeterminate because the increase in
Suppose that 1) disposable income disposable income causes the demand curve for
increases and pork is a normal pork to shift north east because pork is a normal
good, And 2) the price of hog feed good. The decrease in price of hog feed causes
decreases. Because of these the supply curve to shift to the south east. The
changes, the equilibrium price of net effect of these shifts leaves us unable to say
pork is... waht will happen to the equilibrium price of pork.
Consider the market for pork. Increases.
Suppose that disposable income
increases and pork is a normal
good and the price of hog feed
decreases. The equilibrium quantity
of pork...?
Suppose the price elasticity for Elastic. When the number of substitute products
demand for retail phone service in increases, the price elasticity of demand will
the US is 0.95. If the # of retail become more elastic. consumers become more
substitutes for retail telephone sensitive to price when they have more options
service increases, will the price to chose among.
elasticity of demand become more
elastic or more inelastic?
True or False: the law of demand False. quantity demanded of that good will
states that if the price of a good decrease.
increases, CP, then the quantity
demanded of that good will
increase.
Suppose the cross-price elasticity Substitute goods. When the cross price elasticity
of demand for home heating oil is positive then they are substitutes.
with respect to the price of natural
gas is +0.6. This number tells us that
home heating oil and natural gas
are substitute or compliment
goods?
Economics (2026) EXAM QUESTIONS AND ALL
CORRECT ANSWERS 100% SOLVED AND
GUARANTEED SUCCESS!!
Save
Terms in this set (286)
The main concept demonstrated in Opportunity cost
the production possibilities frontier
is
When country A has a lower Comparative Advantage
opportunity cost of producing
sugar relative to country B, then
country A is said to have
A graph that shows the Production Possibilities Frontier
combinations of two goods that the
economy can produce given the
available scarce resources and
available technology is called a
,Assume a production possibilities Five Pickup Trucks
frontier for pickup trucks and big
Mac hamburgers. The economy is
producing 20 big Mac hamburgers
and 65 pickup trucks (point 20, 65).
What is the opportunity cost of
producing an additional 20 Big Mac
hamburgers (point 40, 60)?
The opportunity cost of an item is whatever must be given up to obtain the item.
Consider market for pork, suppose Increases
that price of beef, a substitute for
pork, increases. Because of the
change in price of beef, the
equilibrium price of pork...?
Consider the market for pork, Increase because increase in price of beef
suppose that the price of beef, a causes demand curve for pork to shift North East.
substitute for pork, increases. B/c of this shift, the equilibrium quantity of pork
Because of this change in the price will increase.
of beef, the equilibrium quantity of
pork will...?
Consider the market for pork. Decreases because the increase in price of hog
Suppose that the price of hog feed, feed causes the supply curve for pork to shift
an input to the production of pork, NW. B/c of this shift, the quantity of pork
increases. Because of that change decreases.
in the price of hog feed, the
equilibrium quantity of pork ...?
Consider the market for pork. Decreases because the increase in disposable
Suppose that disposable income income causes the demand curve for pork to shift
increases and pork is an inferior south west, because pork is an inferior good.
good. Because of that change in because of this shift, the equilibrium price of pork
income, the equilibrium price of decreases.
pork...?
, Consider the market for pork. Indeterminate because the increase in
Suppose that 1) disposable income disposable income causes the demand curve for
increases and pork is a normal pork to shift north east because pork is a normal
good, And 2) the price of hog feed good. The decrease in price of hog feed causes
decreases. Because of these the supply curve to shift to the south east. The
changes, the equilibrium price of net effect of these shifts leaves us unable to say
pork is... waht will happen to the equilibrium price of pork.
Consider the market for pork. Increases.
Suppose that disposable income
increases and pork is a normal
good and the price of hog feed
decreases. The equilibrium quantity
of pork...?
Suppose the price elasticity for Elastic. When the number of substitute products
demand for retail phone service in increases, the price elasticity of demand will
the US is 0.95. If the # of retail become more elastic. consumers become more
substitutes for retail telephone sensitive to price when they have more options
service increases, will the price to chose among.
elasticity of demand become more
elastic or more inelastic?
True or False: the law of demand False. quantity demanded of that good will
states that if the price of a good decrease.
increases, CP, then the quantity
demanded of that good will
increase.
Suppose the cross-price elasticity Substitute goods. When the cross price elasticity
of demand for home heating oil is positive then they are substitutes.
with respect to the price of natural
gas is +0.6. This number tells us that
home heating oil and natural gas
are substitute or compliment
goods?
