ECON 2030 FINAL EXAM COMPREHENSIVE
STUDY GUIDE 2026 PRACTICE QUESTIONS
AND ACCURATE ANSWERS GRADED A+
◉ macroeconomics. Answer: -issues that affect the whole economy
-ex: inflation --> affects all prices/markets, unemployment rates -->
affects all jobs, growth --> affects well being of all individuals
reminder: economic growth=macroeconomic
◉ "How has employment in the United States changed over the last
12 months?" is an example of a _____ question.. Answer:
macroeconomic
◉ "Eli Lilly is shedding 3,500 workers—over 8% of its global staff—
and closing several facilities in a bid to cut $500 million in annual
costs. The American drugmaker's revenues were up 8% in the first
half of 2017, at more than $11 billion. But tougher times lie ahead as
patents on blood-thinning and ADHD treatments expire." This quote
is an example of a news item about a _____ issue.. Answer:
microeconomic (only talking about one company, eli lilly)
◉ "The European Central Bank said the euro zone grew faster than
expected in the first half of the year, and raised its growth forecast
for the bloc for 2017, to 2.2%—the fastest pace in ten years. France's
,president, Emmanuel Macron, threw his weight behind a German
proposal for a European Monetary Fund to dampen euro-zone
economic shocks." This is an example of a news item about a _____
issue.. Answer: macroeconomic
◉ benefit. Answer: what is recieved
◉ opportunity cost. Answer: what is given up; benefit from the best
alternative not chosen
◉ rationality. Answer: do something if the benefit is at least as great
as the opportunity cost at the time of the decision; benefit ≥
Opportunity Cost
◉ sunk cost. Answer: a monetary expenditure incurred regardless of
the option chosen; irrelevant to the decision
◉ marginal cost. Answer: the extra cost of doing one more unit of
something
◉ Suppose Remus decides to go fishing at Lake Pescaccio on his day
off from work, but he faces a choice: he can fish the east, south, or
west side of the lake. His expected catch for the day is as follows: 3
fish on the east side, 7 fish on the south side, or 5 fish on the west
,side. Everything else held constant, Remus' benefit of fishing the
east side of the lake is _____ fish.. Answer: 3
◉ Suppose Remus decides to go fishing at Lake Pescaccio on his day
off from work, but he faces a choice: he can fish the east, south, or
west side of the lake. His expected catch for the day is as follows: 3
fish on the east side, 7 fish on the south side, or 5 fish on the west
side. Everything else held constant, Remus' opportunity cost of
fishing the east side of the lake is _____ fish. What would be the
answer if east=west? What about if east=south?. Answer: 7; 7; 5
◉ Suppose Remus decides to go fishing at Lake Pescaccio on his day
off from work, but he faces a choice: he can fish the east, south, or
west side of the lake. His expected catch for the day is as follows: 3
fish on the east side, 7 fish on the south side, or 5 fish on the west
side. Suppose further that Remus chose to fish the east side of the
lake. Was Remus' decision rational?. Answer: no
◉ Suppose rational decision-maker Harry faces a choice: he can
either see Zoe Boekbinder or Beth Patterson in concert. Suppose
further that tickets to see Zoe are $10 each while tickets to see Beth
are $15 each and Harry has not yet obtained a ticket to see either
performer. What is Harry's benefit from seeing Beth in concert?.
Answer: the experience of seeing beth live
◉ Suppose rational decision-maker Harry faces a choice: he can
either see Zoe Boekbinder or Beth Patterson in concert. Suppose
, further that tickets to see Zoe are $10 each while tickets to see Beth
are $15 each and Harry has not yet obtained a ticket to see either
performer. What is Harry's benefit from seeing Zoe in concert?.
Answer: the experience of seeing zoe live + $5
◉ Suppose rational decision-maker Harry faces a choice: he can
either see Zoe Boekbinder or Beth Patterson in concert. Suppose
further that tickets to see Zoe are $10 each while tickets to see Beth
are $15 each and Harry has not yet obtained a ticket to see either
performer. What is Hary's opportunity cost of seeing Beth?. Answer:
Getting to see Zoe live + 5 bucks
◉ Suppose rational decision-maker Harry faces a choice: he can
either see Zoe Boekbinder or Beth Patterson in concert. Suppose
further that tickets to see Zoe are $10 each while tickets to see Beth
are $15 each and Harry has not yet obtained a ticket to see either
performer. What is Harry's opportunity cost of seeing Zoe?. Answer:
getting to see Beth live
◉ Suppose rational decision-maker Harry faces a choice: he can
either see Zoe Boekbinder or Beth Patterson in concert. Suppose
further that tickets to see Zoe are $10 each while tickets to see Beth
are $15 each and Harry has not yet obtained a ticket to see either
performer. What is Harry's sunk cost in deciding which concert to
attend?. Answer: $10
STUDY GUIDE 2026 PRACTICE QUESTIONS
AND ACCURATE ANSWERS GRADED A+
◉ macroeconomics. Answer: -issues that affect the whole economy
-ex: inflation --> affects all prices/markets, unemployment rates -->
affects all jobs, growth --> affects well being of all individuals
reminder: economic growth=macroeconomic
◉ "How has employment in the United States changed over the last
12 months?" is an example of a _____ question.. Answer:
macroeconomic
◉ "Eli Lilly is shedding 3,500 workers—over 8% of its global staff—
and closing several facilities in a bid to cut $500 million in annual
costs. The American drugmaker's revenues were up 8% in the first
half of 2017, at more than $11 billion. But tougher times lie ahead as
patents on blood-thinning and ADHD treatments expire." This quote
is an example of a news item about a _____ issue.. Answer:
microeconomic (only talking about one company, eli lilly)
◉ "The European Central Bank said the euro zone grew faster than
expected in the first half of the year, and raised its growth forecast
for the bloc for 2017, to 2.2%—the fastest pace in ten years. France's
,president, Emmanuel Macron, threw his weight behind a German
proposal for a European Monetary Fund to dampen euro-zone
economic shocks." This is an example of a news item about a _____
issue.. Answer: macroeconomic
◉ benefit. Answer: what is recieved
◉ opportunity cost. Answer: what is given up; benefit from the best
alternative not chosen
◉ rationality. Answer: do something if the benefit is at least as great
as the opportunity cost at the time of the decision; benefit ≥
Opportunity Cost
◉ sunk cost. Answer: a monetary expenditure incurred regardless of
the option chosen; irrelevant to the decision
◉ marginal cost. Answer: the extra cost of doing one more unit of
something
◉ Suppose Remus decides to go fishing at Lake Pescaccio on his day
off from work, but he faces a choice: he can fish the east, south, or
west side of the lake. His expected catch for the day is as follows: 3
fish on the east side, 7 fish on the south side, or 5 fish on the west
,side. Everything else held constant, Remus' benefit of fishing the
east side of the lake is _____ fish.. Answer: 3
◉ Suppose Remus decides to go fishing at Lake Pescaccio on his day
off from work, but he faces a choice: he can fish the east, south, or
west side of the lake. His expected catch for the day is as follows: 3
fish on the east side, 7 fish on the south side, or 5 fish on the west
side. Everything else held constant, Remus' opportunity cost of
fishing the east side of the lake is _____ fish. What would be the
answer if east=west? What about if east=south?. Answer: 7; 7; 5
◉ Suppose Remus decides to go fishing at Lake Pescaccio on his day
off from work, but he faces a choice: he can fish the east, south, or
west side of the lake. His expected catch for the day is as follows: 3
fish on the east side, 7 fish on the south side, or 5 fish on the west
side. Suppose further that Remus chose to fish the east side of the
lake. Was Remus' decision rational?. Answer: no
◉ Suppose rational decision-maker Harry faces a choice: he can
either see Zoe Boekbinder or Beth Patterson in concert. Suppose
further that tickets to see Zoe are $10 each while tickets to see Beth
are $15 each and Harry has not yet obtained a ticket to see either
performer. What is Harry's benefit from seeing Beth in concert?.
Answer: the experience of seeing beth live
◉ Suppose rational decision-maker Harry faces a choice: he can
either see Zoe Boekbinder or Beth Patterson in concert. Suppose
, further that tickets to see Zoe are $10 each while tickets to see Beth
are $15 each and Harry has not yet obtained a ticket to see either
performer. What is Harry's benefit from seeing Zoe in concert?.
Answer: the experience of seeing zoe live + $5
◉ Suppose rational decision-maker Harry faces a choice: he can
either see Zoe Boekbinder or Beth Patterson in concert. Suppose
further that tickets to see Zoe are $10 each while tickets to see Beth
are $15 each and Harry has not yet obtained a ticket to see either
performer. What is Hary's opportunity cost of seeing Beth?. Answer:
Getting to see Zoe live + 5 bucks
◉ Suppose rational decision-maker Harry faces a choice: he can
either see Zoe Boekbinder or Beth Patterson in concert. Suppose
further that tickets to see Zoe are $10 each while tickets to see Beth
are $15 each and Harry has not yet obtained a ticket to see either
performer. What is Harry's opportunity cost of seeing Zoe?. Answer:
getting to see Beth live
◉ Suppose rational decision-maker Harry faces a choice: he can
either see Zoe Boekbinder or Beth Patterson in concert. Suppose
further that tickets to see Zoe are $10 each while tickets to see Beth
are $15 each and Harry has not yet obtained a ticket to see either
performer. What is Harry's sunk cost in deciding which concert to
attend?. Answer: $10
