AGEC 105 Final Exam Questions and
Answers Graded A+
Economics is the study of - Correct answer-choice under conditions of scarcity
What an economic decision maker must give up when choosing one economic
activity over others is known as the - Correct answer-opportunity cost
High-income people will sometimes pay higher prices at convenience stores for
goods that are available at discount stores. They do this because - Correct answer-
crowded and understaffed discount stores impose higher time costs
When individuals come together to buy and sell goods and services, they form a -
Correct answer-market
An agribusiness firm may undertake three alternatives:
-buy cane sugar and manufacture various sugars and sweets, making a profit of $12
million or
-buy corn and produce ethanol, making a profit of $16 million or
-Buy wheat and produce breads, rolls, and pastries making a profit of $13 million
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, The opportunity cost associated with the 3 choices is: - Correct answer-$13 million
An increase in the price of a good results in a - Correct answer-decrease in quantity
demanded.
When there is a change in demand, - Correct answer-there is a shift of the demand
curve
Sam graduates from college, where he earned $2000 a year working part-time, and
takes a job as an accountant, where he now earns $25,000 per year. After receiving
his first paycheck, he gave away his bicycle and purchased a new car. Therefore: -
Correct answer-Bicycles are not a normal good for Sam and are likely to be
inferior.
Which of the following sets of goods are most likely to be complementary goods? -
Correct answer-Baseballs and baseball gloves.
If buyers tastes and preferences shift in favor of a good, the result is: - Correct
answer-An increase in demand
Daniel's consumption of pizzas drops from 6 per week to 4 per week when the
price rises from $9 to $11. His price elasticity of demand for pizza equals - Correct
answer--2.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
Answers Graded A+
Economics is the study of - Correct answer-choice under conditions of scarcity
What an economic decision maker must give up when choosing one economic
activity over others is known as the - Correct answer-opportunity cost
High-income people will sometimes pay higher prices at convenience stores for
goods that are available at discount stores. They do this because - Correct answer-
crowded and understaffed discount stores impose higher time costs
When individuals come together to buy and sell goods and services, they form a -
Correct answer-market
An agribusiness firm may undertake three alternatives:
-buy cane sugar and manufacture various sugars and sweets, making a profit of $12
million or
-buy corn and produce ethanol, making a profit of $16 million or
-Buy wheat and produce breads, rolls, and pastries making a profit of $13 million
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, The opportunity cost associated with the 3 choices is: - Correct answer-$13 million
An increase in the price of a good results in a - Correct answer-decrease in quantity
demanded.
When there is a change in demand, - Correct answer-there is a shift of the demand
curve
Sam graduates from college, where he earned $2000 a year working part-time, and
takes a job as an accountant, where he now earns $25,000 per year. After receiving
his first paycheck, he gave away his bicycle and purchased a new car. Therefore: -
Correct answer-Bicycles are not a normal good for Sam and are likely to be
inferior.
Which of the following sets of goods are most likely to be complementary goods? -
Correct answer-Baseballs and baseball gloves.
If buyers tastes and preferences shift in favor of a good, the result is: - Correct
answer-An increase in demand
Daniel's consumption of pizzas drops from 6 per week to 4 per week when the
price rises from $9 to $11. His price elasticity of demand for pizza equals - Correct
answer--2.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
