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ECON 200 Final Exam Newest Verified Exam With
Complete 100 Questions And Correct Detailed
Answers| Newest Exam!!
When a positive externality exists, the quantity of a good
produced by the market will be: - Answers-too low
By the definition, externalities mean that we have a
divergence between - Answers-private cost and social cost
Mankiw's ten principles can be grouped into what three
categories? - Answers--how people make decisions
-how people interact
-how the economy works as a whole
the study of how society manages its scarce resources -
Answers-economics
What are Mankiw's principles that fall into the "How
People Make Decisions" category? - Answers-1. people
face trade-offs
2. the cost of something is what you give up to get it
3. rational people think at the margin
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4. people respond to incentives
What are Mankiw's principles that fall into the "How
People Interact" category? - Answers-1. trade can make
everyone better off
2. markets are usually a good way to organize economic
activity
3. governments can sometimes improve market outcomes
What are Mankiw's principles that fall into the "How the
Economy as a Whole Works" category? - Answers-1. a
country's standard of living depends on its ability to
produce goods and services
2. prices rise when the government prints too much money
3. society faces a short-run trade-off between inflation and
unemployment
Principle that describes, "There ain't no such thing as a
free lunch." - Answers-people face trade-offs
What is the classic example of Makiw's principle that
people face trade-offs? - Answers-guns and better
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what you give up to get an item; the true cost of the item -
Answers-opportunity cost
an incremental change to an existing plan - Answers-
marginal change
Rational decision makers only proceed with an action if
the ____ exceeds the ____. - Answers--marginal benefit
-marginal cost
something that induces a person to act - Answers-
incentive
an increase in the overall level of prices in the economy -
Answers-inflation
Which of the following involve a trade-off?
a. buying a new car
b. going to college
c. watching a football game on Saturday afternoon
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d. taking a nap
e. all of the above involve trade-offs - Answers-e
Trade-offs are required because wants are unlimited and
resources are - Answers-scarce
Which of the following activities is most likely to produce
an externality?
a. a student sits at home and watches television
b. a student has a party in her dorm room
c. a student reads a novel for pleasure
d. a student eats a hamburger in the student union -
Answers-
when one person's actions have an impact on a bystander
- Answers-externality
Which of the following statements is true about a market
economy?
a. Market participants act as if guided by an "invisible
hand" to produce outcomes that promote general
economic well-being
ECON 200 Final Exam Newest Verified Exam With
Complete 100 Questions And Correct Detailed
Answers| Newest Exam!!
When a positive externality exists, the quantity of a good
produced by the market will be: - Answers-too low
By the definition, externalities mean that we have a
divergence between - Answers-private cost and social cost
Mankiw's ten principles can be grouped into what three
categories? - Answers--how people make decisions
-how people interact
-how the economy works as a whole
the study of how society manages its scarce resources -
Answers-economics
What are Mankiw's principles that fall into the "How
People Make Decisions" category? - Answers-1. people
face trade-offs
2. the cost of something is what you give up to get it
3. rational people think at the margin
,2|Page
4. people respond to incentives
What are Mankiw's principles that fall into the "How
People Interact" category? - Answers-1. trade can make
everyone better off
2. markets are usually a good way to organize economic
activity
3. governments can sometimes improve market outcomes
What are Mankiw's principles that fall into the "How the
Economy as a Whole Works" category? - Answers-1. a
country's standard of living depends on its ability to
produce goods and services
2. prices rise when the government prints too much money
3. society faces a short-run trade-off between inflation and
unemployment
Principle that describes, "There ain't no such thing as a
free lunch." - Answers-people face trade-offs
What is the classic example of Makiw's principle that
people face trade-offs? - Answers-guns and better
,3|Page
what you give up to get an item; the true cost of the item -
Answers-opportunity cost
an incremental change to an existing plan - Answers-
marginal change
Rational decision makers only proceed with an action if
the ____ exceeds the ____. - Answers--marginal benefit
-marginal cost
something that induces a person to act - Answers-
incentive
an increase in the overall level of prices in the economy -
Answers-inflation
Which of the following involve a trade-off?
a. buying a new car
b. going to college
c. watching a football game on Saturday afternoon
, 4|Page
d. taking a nap
e. all of the above involve trade-offs - Answers-e
Trade-offs are required because wants are unlimited and
resources are - Answers-scarce
Which of the following activities is most likely to produce
an externality?
a. a student sits at home and watches television
b. a student has a party in her dorm room
c. a student reads a novel for pleasure
d. a student eats a hamburger in the student union -
Answers-
when one person's actions have an impact on a bystander
- Answers-externality
Which of the following statements is true about a market
economy?
a. Market participants act as if guided by an "invisible
hand" to produce outcomes that promote general
economic well-being
