MODULE 1 DBA EXAM 2025/2026
QUESTIONS AND ANSWERS 100% PASS
Ceteris paribus - ANS "All other things being equal," helps simplify the real world so
economists can study it
Market Economy - ANS (US) - allows supply and demand to determine economy
- individuals own factors of production and have freedom to buy and sell resources in return for
profit
- price=rationer of goods and services, determinant of what is produced
- produce just enough
Command Economy - ANS (Cuba) government makes decisions and there is no incentive to
take risks because government controls economy
Traditional Economy - ANS Based on ancestors
Positive economies - ANS consumer is down 5%
Normative economies - ANS manufacturers should cut back
pg. 1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, Opportunity cost - ANS Scarcity forces us to make decisions and trade-offs which results in
an opportunity cost
ONLY ____ opportunity costs? - ANS one
PPC/PPF - ANS Lets you see maximum amount that can potentially be produced by a single
nation or producer, with current resources and tech. reprents relationship btw. scarity and opp.
cost
Specialization - ANS production of one thing
Law of increasing oppt. cost is true because - ANS Law of substionability
Economic growth - ANS Key to growing economy is to have more of everything, increasing
your production possiblity frontier
As factors of production increase so does... - ANS PPF
Absolute advantage - ANS when some individual has ability to more efficiently produce a
product better
Demand - ANS when an entity is both willing and able to purchase an item
Primary deciding factor for demand is... - ANS price
as price goes down... - ANS quantity demanded goes up
quantity demanded increases when - ANS people purchase more of a product
pg. 2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
QUESTIONS AND ANSWERS 100% PASS
Ceteris paribus - ANS "All other things being equal," helps simplify the real world so
economists can study it
Market Economy - ANS (US) - allows supply and demand to determine economy
- individuals own factors of production and have freedom to buy and sell resources in return for
profit
- price=rationer of goods and services, determinant of what is produced
- produce just enough
Command Economy - ANS (Cuba) government makes decisions and there is no incentive to
take risks because government controls economy
Traditional Economy - ANS Based on ancestors
Positive economies - ANS consumer is down 5%
Normative economies - ANS manufacturers should cut back
pg. 1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, Opportunity cost - ANS Scarcity forces us to make decisions and trade-offs which results in
an opportunity cost
ONLY ____ opportunity costs? - ANS one
PPC/PPF - ANS Lets you see maximum amount that can potentially be produced by a single
nation or producer, with current resources and tech. reprents relationship btw. scarity and opp.
cost
Specialization - ANS production of one thing
Law of increasing oppt. cost is true because - ANS Law of substionability
Economic growth - ANS Key to growing economy is to have more of everything, increasing
your production possiblity frontier
As factors of production increase so does... - ANS PPF
Absolute advantage - ANS when some individual has ability to more efficiently produce a
product better
Demand - ANS when an entity is both willing and able to purchase an item
Primary deciding factor for demand is... - ANS price
as price goes down... - ANS quantity demanded goes up
quantity demanded increases when - ANS people purchase more of a product
pg. 2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
