SAYLOR ACADEMY ECON101: DIRECT CREDIT VERIFIED QUESTIONS
WITH REVIEWED ANSWERS LATEST 2025 GRADED A
A firm has the lowest opportunity cost to produce a product when it: - CORRECT ANSWER-gives
up the least to make the product.
In the circular flow model, what are the two main groups of actors in the economy? What are
the two markets that make up the economy? - CORRECT ANSWER-The main groups of actors are
households and firms, and the two markets are the goods/services market and the market for
the factors of production.
The Greek word for "economy" is Oikonomou, which literally means a person who: - CORRECT
ANSWER-manages a household.
What does the term "capital" refer to in economics? - CORRECT ANSWER-The equipment, and
buildings used by firms
Why does scarcity exist? - CORRECT ANSWER-Resources are limited.
Which of the following is the most fundamental concept in economics? - CORRECT ANSWER-
Scarcity
According to the production possibility frontier below, the economy of this country can produce
50 boats and 25 cars (point Z). For strategic reasons the government would like to produce 45
boats and 35 cars (point Y). What advice would you give to the government of this country?
IMAGE - CORRECT ANSWER-It is an impossible goal because there are too few resources.
Equality and efficiency are both terms used to judge economic outcomes. Although they share
similarities in meaning, they are different in which of the following ways? - CORRECT ANSWER-
Equality refers to a uniform distribution of economic benefits, while efficiency refers to a
maximization of economic benefits.
, Suppose that baristas at a coffee shop currently earn the legal minimum wage. What is likely to
happen if the minimum wage increases to $15 an hour? - CORRECT ANSWER-The supply of
coffee will shift to the left.
The following table presents the supply and demand schedules for volleyballs. There are
protests, and volleyball supporters march on Washington to demand that volleyballs be made
more affordable. A concerned President approaches Congress, and Congress repeals its policy of
a price floor for volleyballs and imposes a price ceiling of $9 ($1 below the former price floor of
$10). What are the consequences of this price ceiling?
IMAGE - CORRECT ANSWER-There will be market equilibrium with 600 volleyballs sold at a price
of $8 each.
In a competitive market people: - CORRECT ANSWER-compete to achieve the collective good.
Why are markets more responsive to the preferences of people with high incomes than to those
of people with low incomes? - CORRECT ANSWER-Consumer demand is affected by income, and
the market responds in an efficient manner to consumer demand.
According to the figure below, how much is spent by consumers purchasing bananas? How
much does it cost producers to supply that amount?
IMAGE - CORRECT ANSWER-Consumers spend $9,000, and producers' costs are $9,000.
According to the figure below, the banana market is at equilibrium. 300 hundred boxes of
bananas are bought and sold every week at a per box price of $30. According to the figure
below, what is the consumer surplus, producer surplus, and total surplus?
WITH REVIEWED ANSWERS LATEST 2025 GRADED A
A firm has the lowest opportunity cost to produce a product when it: - CORRECT ANSWER-gives
up the least to make the product.
In the circular flow model, what are the two main groups of actors in the economy? What are
the two markets that make up the economy? - CORRECT ANSWER-The main groups of actors are
households and firms, and the two markets are the goods/services market and the market for
the factors of production.
The Greek word for "economy" is Oikonomou, which literally means a person who: - CORRECT
ANSWER-manages a household.
What does the term "capital" refer to in economics? - CORRECT ANSWER-The equipment, and
buildings used by firms
Why does scarcity exist? - CORRECT ANSWER-Resources are limited.
Which of the following is the most fundamental concept in economics? - CORRECT ANSWER-
Scarcity
According to the production possibility frontier below, the economy of this country can produce
50 boats and 25 cars (point Z). For strategic reasons the government would like to produce 45
boats and 35 cars (point Y). What advice would you give to the government of this country?
IMAGE - CORRECT ANSWER-It is an impossible goal because there are too few resources.
Equality and efficiency are both terms used to judge economic outcomes. Although they share
similarities in meaning, they are different in which of the following ways? - CORRECT ANSWER-
Equality refers to a uniform distribution of economic benefits, while efficiency refers to a
maximization of economic benefits.
, Suppose that baristas at a coffee shop currently earn the legal minimum wage. What is likely to
happen if the minimum wage increases to $15 an hour? - CORRECT ANSWER-The supply of
coffee will shift to the left.
The following table presents the supply and demand schedules for volleyballs. There are
protests, and volleyball supporters march on Washington to demand that volleyballs be made
more affordable. A concerned President approaches Congress, and Congress repeals its policy of
a price floor for volleyballs and imposes a price ceiling of $9 ($1 below the former price floor of
$10). What are the consequences of this price ceiling?
IMAGE - CORRECT ANSWER-There will be market equilibrium with 600 volleyballs sold at a price
of $8 each.
In a competitive market people: - CORRECT ANSWER-compete to achieve the collective good.
Why are markets more responsive to the preferences of people with high incomes than to those
of people with low incomes? - CORRECT ANSWER-Consumer demand is affected by income, and
the market responds in an efficient manner to consumer demand.
According to the figure below, how much is spent by consumers purchasing bananas? How
much does it cost producers to supply that amount?
IMAGE - CORRECT ANSWER-Consumers spend $9,000, and producers' costs are $9,000.
According to the figure below, the banana market is at equilibrium. 300 hundred boxes of
bananas are bought and sold every week at a per box price of $30. According to the figure
below, what is the consumer surplus, producer surplus, and total surplus?
