1|Page
OLE MISS ECON 202 MIDTERM HAYES EXAM
QUESTIONS AND ANSWERS 2025
For economists, the word "utility" means - .....ANSWER...
✔✔ pleasure or satisfaction.
A person should consume more of something when its
marginal - .....ANSWER... ✔✔ benefit exceeds its
marginal cost.
Macroeconomics explains the behavior of individual
households and business firms; microeconomics is
concerned with the behavior of aggregates or the
economy as a whole. - .....ANSWER... ✔✔ false
The production possibilities curve shows various
combinations of two products that an economy can
produce when achieving full employment. -
.....ANSWER... ✔✔ true
Choices entail marginal costs because resources are
scarce. - .....ANSWER... ✔✔ true
,2|Page
In deciding whether to study for an economics quiz or go
to a concert, one is confronted by the idea(s) of -
.....ANSWER... ✔✔ scarcity and opportunity costs.
The budget line shows the various incomes that an
individual can earn from different jobs. - .....ANSWER...
✔✔ false
The study of economics is not useful for consumers,
because economic analysis focuses only on businesses
and the economy. - .....ANSWER... ✔✔ false
An increase in immigration would shift the production
possibilities curve to the left. - .....ANSWER... ✔✔
false
Normative statements are expressions of facts. -
.....ANSWER... ✔✔ false
The Latin term "ceteris paribus" means - .....ANSWER...
✔✔ other things equal
,3|Page
Economic resources are also called - .....ANSWER...
✔✔ factors of production
A production possibilities curve illustrates - .....ANSWER...
✔✔ scarcity
The negative slope of the production possibilities curve is
a graphical way of indicating that - .....ANSWER...
✔✔ to produce more of one product, we must do
with less of another.
If an economy is operating inside its production
possibilities curve for consumer goods and capital
goods, it - .....ANSWER... ✔✔ can produce more of
both consumer goods and capital goods by using
resources that are currently idle.
Broadly defined, competition involves - .....ANSWER...
✔✔ independently acting buyers and sellers and
freedom to enter or leave markets.
Productive efficiency refers to - .....ANSWER... ✔✔
the use of the least-cost method of production.
, 4|Page
A price floor in a competitive market will result in
persistent shortages of a product. - .....ANSWER...
✔✔ false
In moving along a demand curve, which of the following
is not held constant? - .....ANSWER... ✔✔ the price of
the product itself.
At the point where the demand and supply curves for a
product intersect, - .....ANSWER... ✔✔ the quantity
that consumers want to purchase and the amount
producers choose to sell are the same.
If there is a shortage of product X, and the price is free
to change, - .....ANSWER... ✔✔ the price of the
product will rise.
The equilibrium price and quantity in a market usually
produce allocative efficiency because - .....ANSWER...
✔✔ marginal benefit and marginal cost are equal at
that point.
The equilibrium price and quantity in a market usually
produce allocative efficiency because - .....ANSWER...
OLE MISS ECON 202 MIDTERM HAYES EXAM
QUESTIONS AND ANSWERS 2025
For economists, the word "utility" means - .....ANSWER...
✔✔ pleasure or satisfaction.
A person should consume more of something when its
marginal - .....ANSWER... ✔✔ benefit exceeds its
marginal cost.
Macroeconomics explains the behavior of individual
households and business firms; microeconomics is
concerned with the behavior of aggregates or the
economy as a whole. - .....ANSWER... ✔✔ false
The production possibilities curve shows various
combinations of two products that an economy can
produce when achieving full employment. -
.....ANSWER... ✔✔ true
Choices entail marginal costs because resources are
scarce. - .....ANSWER... ✔✔ true
,2|Page
In deciding whether to study for an economics quiz or go
to a concert, one is confronted by the idea(s) of -
.....ANSWER... ✔✔ scarcity and opportunity costs.
The budget line shows the various incomes that an
individual can earn from different jobs. - .....ANSWER...
✔✔ false
The study of economics is not useful for consumers,
because economic analysis focuses only on businesses
and the economy. - .....ANSWER... ✔✔ false
An increase in immigration would shift the production
possibilities curve to the left. - .....ANSWER... ✔✔
false
Normative statements are expressions of facts. -
.....ANSWER... ✔✔ false
The Latin term "ceteris paribus" means - .....ANSWER...
✔✔ other things equal
,3|Page
Economic resources are also called - .....ANSWER...
✔✔ factors of production
A production possibilities curve illustrates - .....ANSWER...
✔✔ scarcity
The negative slope of the production possibilities curve is
a graphical way of indicating that - .....ANSWER...
✔✔ to produce more of one product, we must do
with less of another.
If an economy is operating inside its production
possibilities curve for consumer goods and capital
goods, it - .....ANSWER... ✔✔ can produce more of
both consumer goods and capital goods by using
resources that are currently idle.
Broadly defined, competition involves - .....ANSWER...
✔✔ independently acting buyers and sellers and
freedom to enter or leave markets.
Productive efficiency refers to - .....ANSWER... ✔✔
the use of the least-cost method of production.
, 4|Page
A price floor in a competitive market will result in
persistent shortages of a product. - .....ANSWER...
✔✔ false
In moving along a demand curve, which of the following
is not held constant? - .....ANSWER... ✔✔ the price of
the product itself.
At the point where the demand and supply curves for a
product intersect, - .....ANSWER... ✔✔ the quantity
that consumers want to purchase and the amount
producers choose to sell are the same.
If there is a shortage of product X, and the price is free
to change, - .....ANSWER... ✔✔ the price of the
product will rise.
The equilibrium price and quantity in a market usually
produce allocative efficiency because - .....ANSWER...
✔✔ marginal benefit and marginal cost are equal at
that point.
The equilibrium price and quantity in a market usually
produce allocative efficiency because - .....ANSWER...
