AGEC 500 Final Exam Study Guide 2026 | Complete Review, Practice Questions & Exam Prep

AGEC 500 Final Exam Study Guide 2026 | Complete Review, Practice Questions &
Exam Prep


Microeconomics - ANS ✔✔Consumers (households)

Producers (firms)



Macroeconomics - ANS ✔✔Nations



Positive analysis - ANS ✔✔What is

Objective

Does not mean correct



Normative analysis - ANS ✔✔What ought to be

Subjective



Theories - ANS ✔✔Law of demand

Not perfect

Simplifying assumptions



Models - ANS ✔✔Math or graph

Representation of theories

Predict or explain economic outcomes



Prices - ANS ✔✔Convey information on how to best use scarce resources



Real price - ANS ✔✔(First year) Nominal price/CPI * (Second year) CPI

, Law of demand - ANS ✔✔If price increase consumers buy less (and vice versa)



What influences quantity demanded? - ANS ✔✔Income, preferences, news, exports,
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Price ceiling - ANS ✔✔Shortage



Price floor - ANS ✔✔Surplus



Demand increases - ANS ✔✔P* and Q* increase



Demand decreases - ANS ✔✔P* and Q* decrease



Supply increases - ANS ✔✔P* decreases and Q* increases



Supply decreases - ANS ✔✔P* increases and Q* decreases



Demand and supply increase - ANS ✔✔Q* increases



Demand decreases and supply increases - ANS ✔✔P* decreases



Demand and supply decreases - ANS ✔✔Q* decreases



Own price example - ANS ✔✔A 1% change in price of ground beef will result in a 1.08 change in
QD of ground beef in the opposite direction