Economics 201 Final Exam questions with
complete solution 2024
k
Definition kof kEconomics k- kANS✓✓-A ksocial kscience kconcerned kchiefly kwith
kdescription kand kanalysis kof kthe kproduction kand kconsumption kof kgoods kand
kservices
Definition kof kScarcity k- kANS✓✓-Not kabundant kor kplentiful
4 ktypes kof keconomic kresources k- kANS✓✓-Land, kLabor, kCapital,
kEntrepreneurship
Definition kof kOpportunity kCost k- kANS✓✓-The kvalue kof kwhat kis ksacrificed kto
kget ksomething kelse
Explicit kcost k- kANS✓✓-a kdirect kpayment kmade kto kothers kin kthe kcourse kof
krunning ka kbusiness, ksuch kas kwage, krent kand kmaterials
Implicit kCost k- kANS✓✓-the kopportunity kcost kthat ka kbusiness ktakes kto krun
kthe kbusiness
Specialization k- kANS✓✓-When ka kbusiness kor kperson kdoes kone kthing kreally
kwell
exchange k- kANS✓✓-the ktrading kof kgoods kor kservices kbetween ktwo kparties
Comparative kadvantage k- kANS✓✓-When ka kcompany kproduces ka kgood kin ka
kbetter kway kthan kwhen kcompared kto kother kgoods
Absolute kadvantage k- kANS✓✓-When ka kbusiness kproduces ka kgood kat kthe
klowest kcost
What kquestions kdoes kan keconomy kanswer k- kANS✓✓-What kto kproduce
How kmuch kto kproduce
for kwhom kto kproduce
how kwill kit kdeal kwith kchange
how kwill kprogress kbe kpromoted
Traditional keconomy k- kANS✓✓-an keconomy kbased koff kculture kor ktradition
, Market keconomy k- kANS✓✓-An keconomic ksystem kbased kon kprivate kproperty
krights kand kself kinterest kin kwhich kindividuals kdecide khow,for kwhom kand
kwhat kto kproduce
Command keconomy k- kANS✓✓-an keconomic ksystem kbased kon kindividuals
kgoodwill ktowards kothers kand kin kwhich ksociety kdecides khow, kfor kwhom, kand
kwhat kto kproduce
definition kof ka kmarket k- kANS✓✓-A kregular kgathering kof kpeople kfor kthe
kpurchase kand ksale kof kprovisions, klivestock, kand kother kcommodities.
Law kof kDemand k- kANS✓✓-As kPrice kgoes kup, kDemand kgoes kdown
law kof ksupply k- kANS✓✓-price kand kquantity kbehave kin kthe ksame kway k(as kp
kgoes kup, kQd kgoes kup)
inferior kgood k- kANS✓✓-as kyour kincome kgoes kup, kyou kbuy kless kof kthe kgood.
substitute k- kANS✓✓-a kgood kthat kcan kbe keasily kreplaced kby kanother k(pens
kand kpencils)
complement k- kANS✓✓-a kgood kthat kgoes ktogether kwith kanother k(peanut
kbutter kand kjelly)
excise ktax k- kANS✓✓-a ktax kplaced kon ka kspecific kgood
definition kof kelasticity k- kANS✓✓-refers kthe kdegree kto kwhich kindividuals
k(consumers/producers) kchange ktheir kdemand/amount ksupplied kin kresponse
kto kprice kor kincome kchanges.
elasticity k= kchange kin kquantity k/ kchange kin kprice
3 ktypes kof kelasticity k- kANS✓✓-price kelasticity kof kdemand
income kelasticity kof kdemand
cross kelasticity kof kdemand
How kto kcalculate kprice kelasticity kof kdemand k- kANS✓✓-% kchange kin kquantity
kdemanded
__________________
% kchange kin kprice
How kto kcalculate kincome kelasticity kof kdemand k- kANS✓✓-% kchange kin
kdemand
_________________
% kchange kin kincome
complete solution 2024
k
Definition kof kEconomics k- kANS✓✓-A ksocial kscience kconcerned kchiefly kwith
kdescription kand kanalysis kof kthe kproduction kand kconsumption kof kgoods kand
kservices
Definition kof kScarcity k- kANS✓✓-Not kabundant kor kplentiful
4 ktypes kof keconomic kresources k- kANS✓✓-Land, kLabor, kCapital,
kEntrepreneurship
Definition kof kOpportunity kCost k- kANS✓✓-The kvalue kof kwhat kis ksacrificed kto
kget ksomething kelse
Explicit kcost k- kANS✓✓-a kdirect kpayment kmade kto kothers kin kthe kcourse kof
krunning ka kbusiness, ksuch kas kwage, krent kand kmaterials
Implicit kCost k- kANS✓✓-the kopportunity kcost kthat ka kbusiness ktakes kto krun
kthe kbusiness
Specialization k- kANS✓✓-When ka kbusiness kor kperson kdoes kone kthing kreally
kwell
exchange k- kANS✓✓-the ktrading kof kgoods kor kservices kbetween ktwo kparties
Comparative kadvantage k- kANS✓✓-When ka kcompany kproduces ka kgood kin ka
kbetter kway kthan kwhen kcompared kto kother kgoods
Absolute kadvantage k- kANS✓✓-When ka kbusiness kproduces ka kgood kat kthe
klowest kcost
What kquestions kdoes kan keconomy kanswer k- kANS✓✓-What kto kproduce
How kmuch kto kproduce
for kwhom kto kproduce
how kwill kit kdeal kwith kchange
how kwill kprogress kbe kpromoted
Traditional keconomy k- kANS✓✓-an keconomy kbased koff kculture kor ktradition
, Market keconomy k- kANS✓✓-An keconomic ksystem kbased kon kprivate kproperty
krights kand kself kinterest kin kwhich kindividuals kdecide khow,for kwhom kand
kwhat kto kproduce
Command keconomy k- kANS✓✓-an keconomic ksystem kbased kon kindividuals
kgoodwill ktowards kothers kand kin kwhich ksociety kdecides khow, kfor kwhom, kand
kwhat kto kproduce
definition kof ka kmarket k- kANS✓✓-A kregular kgathering kof kpeople kfor kthe
kpurchase kand ksale kof kprovisions, klivestock, kand kother kcommodities.
Law kof kDemand k- kANS✓✓-As kPrice kgoes kup, kDemand kgoes kdown
law kof ksupply k- kANS✓✓-price kand kquantity kbehave kin kthe ksame kway k(as kp
kgoes kup, kQd kgoes kup)
inferior kgood k- kANS✓✓-as kyour kincome kgoes kup, kyou kbuy kless kof kthe kgood.
substitute k- kANS✓✓-a kgood kthat kcan kbe keasily kreplaced kby kanother k(pens
kand kpencils)
complement k- kANS✓✓-a kgood kthat kgoes ktogether kwith kanother k(peanut
kbutter kand kjelly)
excise ktax k- kANS✓✓-a ktax kplaced kon ka kspecific kgood
definition kof kelasticity k- kANS✓✓-refers kthe kdegree kto kwhich kindividuals
k(consumers/producers) kchange ktheir kdemand/amount ksupplied kin kresponse
kto kprice kor kincome kchanges.
elasticity k= kchange kin kquantity k/ kchange kin kprice
3 ktypes kof kelasticity k- kANS✓✓-price kelasticity kof kdemand
income kelasticity kof kdemand
cross kelasticity kof kdemand
How kto kcalculate kprice kelasticity kof kdemand k- kANS✓✓-% kchange kin kquantity
kdemanded
__________________
% kchange kin kprice
How kto kcalculate kincome kelasticity kof kdemand k- kANS✓✓-% kchange kin
kdemand
_________________
% kchange kin kincome
