PRINCIPLES OF MICROECONOMICS UNIT
1 EXAM QUESTIONS WITH VERIFIED
ANSWERS
/. Economics is - Answer-✅The study of how society allocates it's scarce resources
/.Cost - Answer-✅Is determined by what someone is willing to give up to get it
/.Comparative advantage - Answer-✅US making what they're good at making so that
they can trade for what they don't make easily
/.Externalities - Answer-✅Cost or benefit to bystanders to a market transaction
/.Demand definition - Answer-✅Is a schedule or curve that shows the various amounts
of a product that consumers will purchase at each of several possible prices during a
specified period of time
/.Demand is - Answer-✅Consumers willingness and ability to buy a given quantity at a
given price
/.Demand is affected by the following factors - Answer-✅Price, taste and preferences,
substitutes, complements, income, number of buyers, expected price, expected income,
taxes and subsidies
/.Normal goods - Answer-✅People buy more of these when income rises
/.Inferior goods - Answer-✅People buy more of these when income declined. (Nothing
is this kind of item at all income levels)
/.The demand for Reese's pieces will _ if m&m's drop in price - Answer-✅Decrease
/.If the price of ketchup goes up, the demand curve for fries will - Answer-✅Decrease
/.If the price of a complement decreases, the demand for an item will - Answer-
✅Increase
1 EXAM QUESTIONS WITH VERIFIED
ANSWERS
/. Economics is - Answer-✅The study of how society allocates it's scarce resources
/.Cost - Answer-✅Is determined by what someone is willing to give up to get it
/.Comparative advantage - Answer-✅US making what they're good at making so that
they can trade for what they don't make easily
/.Externalities - Answer-✅Cost or benefit to bystanders to a market transaction
/.Demand definition - Answer-✅Is a schedule or curve that shows the various amounts
of a product that consumers will purchase at each of several possible prices during a
specified period of time
/.Demand is - Answer-✅Consumers willingness and ability to buy a given quantity at a
given price
/.Demand is affected by the following factors - Answer-✅Price, taste and preferences,
substitutes, complements, income, number of buyers, expected price, expected income,
taxes and subsidies
/.Normal goods - Answer-✅People buy more of these when income rises
/.Inferior goods - Answer-✅People buy more of these when income declined. (Nothing
is this kind of item at all income levels)
/.The demand for Reese's pieces will _ if m&m's drop in price - Answer-✅Decrease
/.If the price of ketchup goes up, the demand curve for fries will - Answer-✅Decrease
/.If the price of a complement decreases, the demand for an item will - Answer-
✅Increase
