ECON 2030 FINAL EXAM ACTUAL TEST
SCRIPT 2026 COMPLETE QUESTIONS AND
ANSWERS GRADED A+
◉ Consider the following statements: Which of the above statements
demonstrates that economic agents respond to incentives? Answer:
(Only A) Soda drinkers purchase more soda from a grocery store
that sells soda at a lower price than other rival grocery stores in the
area.
◉ Using marginal analysis, how many hours should Ivan extend his
hours of operations? Answer: 5 hours
◉ Zane's Vanes is a service that restores old weather vanes. Zane has
just spent $125 purchasing a 1920s era weather vane which he
expects to restore and sell for $500 once the work is completed.
After having $125, Zane realizes that he will need to spend an
additional $200 on materials to complete the restoration.
Alternatively he can sell the weather vane without restoring it for
$200. What should he do? Answer: He should finish the restoration
and then sell the weather vane
◉ Which of the is a normative economic statement? Answer: The
price of milk is too high
,◉ Which of the following is a microeconomics question? Answer:
How will Apple decide on a selling price for the iPad?
◉ What is the slope of the supply of cigarettes? Answer: 0.01
◉ Using the slope that you calculated in question 7, write down the
equation for the supply of cigarettes. Answer: P=4.3 + 0.01*Qs
◉ If the price of pineapple juice was $4.50 a gallon and it is now
$5.75 a gallon, what is the percentage change in price? Answer:
27.8%
◉ The following equations represent the demand and supply for
kumquats.
Qd=60-3P
Qs=-20+5P
What is the equilibrium price and quantity of the kumquats?
Answer: P*=$10; Q*=30 thousand
◉ Suppose in 2018, you purchase a Ford car made in 2016. Which of
the following will be included in the GDP for 2018? Answer: the fees
that you paid to your local Ford dealership
, ◉ Suppose that a simple economy produces only 4 goods and
services: sweatshirts, dental examinations, coffee drinks, and coffee
beans. Assume HALF of the coffee beans are used in the production
of the coffee drinks while the other HALF is sold in stores to final
customers. Using the info in the above table, nominal GDP for this
simple economy equals Answer: $9,250
◉ The purchase by the German govt. of an airplane produced in the
US is included in US Answer: net exports
◉ Suppose real GDP was $10 million in some small country in 2018,
consumption was $6 million, investment was $2 million, govt.
purchases were $1 million and imports were $2 million. How much
were exports in this country in 2018? Answer: $3 million
◉ Emily is a famous novelist. She buys pens and paper for $20 and
writes a novel that she sells to a publishing company for $500,000. If
the publisher prints 1 million copies that sell for $25 each, what is
Emily's value added? Answer: $499,980
◉ Refer to the Table above. What phase of the business cycles was
this economy in between years 2004 and 2005? Answer: Boom
◉ Household production refers to Answer: goods and services
people produce for themselves
SCRIPT 2026 COMPLETE QUESTIONS AND
ANSWERS GRADED A+
◉ Consider the following statements: Which of the above statements
demonstrates that economic agents respond to incentives? Answer:
(Only A) Soda drinkers purchase more soda from a grocery store
that sells soda at a lower price than other rival grocery stores in the
area.
◉ Using marginal analysis, how many hours should Ivan extend his
hours of operations? Answer: 5 hours
◉ Zane's Vanes is a service that restores old weather vanes. Zane has
just spent $125 purchasing a 1920s era weather vane which he
expects to restore and sell for $500 once the work is completed.
After having $125, Zane realizes that he will need to spend an
additional $200 on materials to complete the restoration.
Alternatively he can sell the weather vane without restoring it for
$200. What should he do? Answer: He should finish the restoration
and then sell the weather vane
◉ Which of the is a normative economic statement? Answer: The
price of milk is too high
,◉ Which of the following is a microeconomics question? Answer:
How will Apple decide on a selling price for the iPad?
◉ What is the slope of the supply of cigarettes? Answer: 0.01
◉ Using the slope that you calculated in question 7, write down the
equation for the supply of cigarettes. Answer: P=4.3 + 0.01*Qs
◉ If the price of pineapple juice was $4.50 a gallon and it is now
$5.75 a gallon, what is the percentage change in price? Answer:
27.8%
◉ The following equations represent the demand and supply for
kumquats.
Qd=60-3P
Qs=-20+5P
What is the equilibrium price and quantity of the kumquats?
Answer: P*=$10; Q*=30 thousand
◉ Suppose in 2018, you purchase a Ford car made in 2016. Which of
the following will be included in the GDP for 2018? Answer: the fees
that you paid to your local Ford dealership
, ◉ Suppose that a simple economy produces only 4 goods and
services: sweatshirts, dental examinations, coffee drinks, and coffee
beans. Assume HALF of the coffee beans are used in the production
of the coffee drinks while the other HALF is sold in stores to final
customers. Using the info in the above table, nominal GDP for this
simple economy equals Answer: $9,250
◉ The purchase by the German govt. of an airplane produced in the
US is included in US Answer: net exports
◉ Suppose real GDP was $10 million in some small country in 2018,
consumption was $6 million, investment was $2 million, govt.
purchases were $1 million and imports were $2 million. How much
were exports in this country in 2018? Answer: $3 million
◉ Emily is a famous novelist. She buys pens and paper for $20 and
writes a novel that she sells to a publishing company for $500,000. If
the publisher prints 1 million copies that sell for $25 each, what is
Emily's value added? Answer: $499,980
◉ Refer to the Table above. What phase of the business cycles was
this economy in between years 2004 and 2005? Answer: Boom
◉ Household production refers to Answer: goods and services
people produce for themselves
