ECON 160 FINAL EXAM QUESTIONS AND
VERIFIED ANSWERS (LATEST 2026- 2027)
100% CORRECT
A change in the price of a good or service - correct answer-
This would not shift the demand curve for a good or service
Absolute advantage - correct answer- The ability to
produce a good using fewer inputs than another producer
Accounting profit - correct answer- Total revenue minus
total explicit costs
Average fixed cost - correct answer- Fixed cost divided
by quantity of output
Average total cost - correct answer- Average fixed cost
plus average variable cost
Average variable cost - correct answer- Variable cost
divided by quantity of output
, Barriers to entry - correct answer- 1. A single firm owns
a key resource
2. The government gives a single firm the exclusive right to
produce the good
3. Natural monopoly
Buyers of the good will bear most of the burden of the tax -
correct answer- When a tax is imposed on a good for
which the supply is relatively elastic and the demand is relatively
inelastic
Capital - correct answer- The equipment and structures
used to produce goods and services
Cartel - correct answer- A group of firms act like a
monopoly; violates Sherman Act on restraint of trade and price
fixing; Ex: OPEC and U.S. potato growers
Clayton Act of 1914 - correct answer- Mergers illegal if
they "substantially" reduce competition
VERIFIED ANSWERS (LATEST 2026- 2027)
100% CORRECT
A change in the price of a good or service - correct answer-
This would not shift the demand curve for a good or service
Absolute advantage - correct answer- The ability to
produce a good using fewer inputs than another producer
Accounting profit - correct answer- Total revenue minus
total explicit costs
Average fixed cost - correct answer- Fixed cost divided
by quantity of output
Average total cost - correct answer- Average fixed cost
plus average variable cost
Average variable cost - correct answer- Variable cost
divided by quantity of output
, Barriers to entry - correct answer- 1. A single firm owns
a key resource
2. The government gives a single firm the exclusive right to
produce the good
3. Natural monopoly
Buyers of the good will bear most of the burden of the tax -
correct answer- When a tax is imposed on a good for
which the supply is relatively elastic and the demand is relatively
inelastic
Capital - correct answer- The equipment and structures
used to produce goods and services
Cartel - correct answer- A group of firms act like a
monopoly; violates Sherman Act on restraint of trade and price
fixing; Ex: OPEC and U.S. potato growers
Clayton Act of 1914 - correct answer- Mergers illegal if
they "substantially" reduce competition
