UNT ECON 1100 FINAL UPDATED EXAM 2025 //
COMPLETE MULTIPLE-CHOICE PRACTICE
QUESTIONS // DETAILED LEARNING
EXPLANATIONS // COMPREHENSIVE STUDY GUIDE
// LATEST EDITION!!!!!
Ceteris Paribus assumption - THE CORRECT ANSWER -an assumption
used to isolate the relationship between two variables by holding other
influences on the relationship constant
Circular flow model - THE CORRECT ANSWER -A model that was
developed in the mid-eighteenth century in France; one of the first
models used to help explain economic relationships. this model shows
the interaction of participants in a market economy. page 6 book
Production possibilities frontier (PPF) - THE CORRECT ANSWER -A
graph illustrating the combinations of two types of output that can be
produced by a society using the available resources and technology
Opportunity cost - THE CORRECT ANSWER -the value of the best
alternative that must be given up when a choice is made Efficiency -
THE CORRECT ANSWER -the outcome of voluntary exchange in free
markets, assuming no market failures, and consistent with the best use
of scarce resources
Inefficiency - THE CORRECT ANSWER -producing less then they can,
which keeps society from producing at its potential
economic growth - THE CORRECT ANSWER -a long term process that
permits increased production of goods and services and improved
material standards of living
,Comparative advantage - THE CORRECT ANSWER -the ability to
produce a particular type of output at a lower opportunity cost than
another country
Trade deficit - THE CORRECT ANSWER -occurs when the value of
imports exceeds the value of exports
Trade surplus - THE CORRECT ANSWER -occurs when the value of
exports exceeds the value of imports
Demand - THE CORRECT ANSWER -The decision to buy, hire, or
borrow; represented by a demand function that shows the relationship
between price (or wage rate or interest rate) and quantity demanded,
ceteris paribus
Supply - THE CORRECT ANSWER -The decision to tell, accept
employment, or lend. represented by a supply function that shows the
relationship between price (or wage rate or interest rate) and quality
supplied, ceteris paribus
Law of demand - THE CORRECT ANSWER -The observation that a
greater quantity will be demanded at lower relative prices than at higher
relative prices, ceteris paribus
Law of supply - THE CORRECT ANSWER -The observation that a
greater quantity will be supplied at higher relative prices than at lower
relative prices, ceteris paribus
Market equilibrium - THE CORRECT ANSWER -an outcome in which
the market is cleared because quantity demanded equals quantity
supplied and there is no shortage and no surplus
, Market shortage - THE CORRECT ANSWER -occurs when the quantity
demanded exceeds the quantity supplied; the size of the shortage is
measured by subtracting the quantity supplied from the quantity
demanded
Market surplus - THE CORRECT ANSWER -occurs when the quantity
supplied exceeds the quantity demanded; the size of the surplus is
measured by subtracting the quantity demanded from the quantity
supplied
factors that change demand - THE CORRECT ANSWER -change in
price fall in demand
tastes and preferences
income
the price of related goods the
number of buyers expectations
(of buyers)
factors that change supply - THE CORRECT ANSWER -As price
increases firms have an incentive to supply more because they get extra
revenue (income) from selling the goods.
If price changes, there is a movement along the supply curve, e.g. a
higher price causes a higher amount to be supplied.
costs of production production
technology the price of other
producible goods the number of sellers
COMPLETE MULTIPLE-CHOICE PRACTICE
QUESTIONS // DETAILED LEARNING
EXPLANATIONS // COMPREHENSIVE STUDY GUIDE
// LATEST EDITION!!!!!
Ceteris Paribus assumption - THE CORRECT ANSWER -an assumption
used to isolate the relationship between two variables by holding other
influences on the relationship constant
Circular flow model - THE CORRECT ANSWER -A model that was
developed in the mid-eighteenth century in France; one of the first
models used to help explain economic relationships. this model shows
the interaction of participants in a market economy. page 6 book
Production possibilities frontier (PPF) - THE CORRECT ANSWER -A
graph illustrating the combinations of two types of output that can be
produced by a society using the available resources and technology
Opportunity cost - THE CORRECT ANSWER -the value of the best
alternative that must be given up when a choice is made Efficiency -
THE CORRECT ANSWER -the outcome of voluntary exchange in free
markets, assuming no market failures, and consistent with the best use
of scarce resources
Inefficiency - THE CORRECT ANSWER -producing less then they can,
which keeps society from producing at its potential
economic growth - THE CORRECT ANSWER -a long term process that
permits increased production of goods and services and improved
material standards of living
,Comparative advantage - THE CORRECT ANSWER -the ability to
produce a particular type of output at a lower opportunity cost than
another country
Trade deficit - THE CORRECT ANSWER -occurs when the value of
imports exceeds the value of exports
Trade surplus - THE CORRECT ANSWER -occurs when the value of
exports exceeds the value of imports
Demand - THE CORRECT ANSWER -The decision to buy, hire, or
borrow; represented by a demand function that shows the relationship
between price (or wage rate or interest rate) and quantity demanded,
ceteris paribus
Supply - THE CORRECT ANSWER -The decision to tell, accept
employment, or lend. represented by a supply function that shows the
relationship between price (or wage rate or interest rate) and quality
supplied, ceteris paribus
Law of demand - THE CORRECT ANSWER -The observation that a
greater quantity will be demanded at lower relative prices than at higher
relative prices, ceteris paribus
Law of supply - THE CORRECT ANSWER -The observation that a
greater quantity will be supplied at higher relative prices than at lower
relative prices, ceteris paribus
Market equilibrium - THE CORRECT ANSWER -an outcome in which
the market is cleared because quantity demanded equals quantity
supplied and there is no shortage and no surplus
, Market shortage - THE CORRECT ANSWER -occurs when the quantity
demanded exceeds the quantity supplied; the size of the shortage is
measured by subtracting the quantity supplied from the quantity
demanded
Market surplus - THE CORRECT ANSWER -occurs when the quantity
supplied exceeds the quantity demanded; the size of the surplus is
measured by subtracting the quantity demanded from the quantity
supplied
factors that change demand - THE CORRECT ANSWER -change in
price fall in demand
tastes and preferences
income
the price of related goods the
number of buyers expectations
(of buyers)
factors that change supply - THE CORRECT ANSWER -As price
increases firms have an incentive to supply more because they get extra
revenue (income) from selling the goods.
If price changes, there is a movement along the supply curve, e.g. a
higher price causes a higher amount to be supplied.
costs of production production
technology the price of other
producible goods the number of sellers
