ABEKA ECONOMICS TEST 2 – 100 ACTUAL EXAM QUESTIONS & CORRECT ANSWERS WITH RATIONALES | COMPLETE STUDY GUIDE FOR HIGH SCHOOL & COLLEGE

Page 1 of 152



ABEKA ECONOMICS Test 2 WITH 100%

VERIFIED QUESTIONS & ANSWERS




1. The law of demand states that as price increases,

quantity demanded _____.

• A) Increases

• B) Decreases

• C) Stays the same

• D) Doubles

✅ B) Decreases

Rationale: Inverse relationship: price up → demand down

(ceteris paribus).

2. A shift of the demand curve to the right indicates _____.

• A) Decrease in demand

,Page 2 of 152


• B) Increase in demand

• C) Increase in quantity demanded

• D) Decrease in supply

✅ B) Increase in demand

Rationale: Right shift = more demanded at each price.

3. Scenario: The price of coffee falls. What happens to the

demand for tea (a substitute)?

• A) Increases

• B) Decreases

• C) No change

• D) Doubles

✅ B) Decreases

Rationale: Substitute goods: cheaper coffee → less tea

demanded.

4. The law of supply says price and quantity supplied are

_____ related.

,Page 3 of 152


• A) Inversely

• B) Directly

• C) Not

• D) Negatively

✅ B) Directly

Rationale: Higher price → higher quantity supplied.

5. Equilibrium price is where _____.

• A) Supply exceeds demand

• B) Demand exceeds supply

• C) Quantity demanded = quantity supplied

• D) Price is highest

✅ C) Quantity demanded = quantity supplied

Rationale: Market-clearing price.

6. A surplus occurs when price is _____ equilibrium.

• A) Below

, Page 4 of 152


• B) Above

• C) At

• D) Unrelated to

✅ B) Above

Rationale: Price too high → quantity supplied > quantity

demanded.

7. Scenario: A new study says eating avocados prevents

disease. The demand curve for avocados will _____.

• A) Shift left

• B) Shift right

• C) Become vertical

• D) Become horizontal

✅ B) Shift right

Rationale: Increased preference → higher demand.

8. Which would NOT shift the demand curve for cars?