Clemson Macroeconomics 2120 Final Exam
Questions and Answers| 2026/27 Updated
Adam Smith's metaphor of the "invisible hand" can lead to benefits to society
when...
institutions align the private interest with the social interest
When people choose to recycle and buy appliances that conserve on energy,
they are acting in ______ & _______.
the social interest, their self-interest
In an effort to clean air, many communities impose restrictions on the burning of
garbage. This policy causes more garbage to be buried underground, potentially
increasing groundwater contamination. What concept does this example
represent?
Trade-Offs
The opportunity cost of receiving a free ticked to the NCAA championship game
with a face-value of $450 and attending the game is:
there resale value of the lost market value of selling the ticket and the time to go
,What are the institutions that help foster the appropriate incentives for
economic growth?
a dependable legal system, property rights, & competitive & open markets
Gross Domestic Product (GDP) is best defined as the _____ value of all _____
goods and services that are produced _________.
market, final, within a country in 1 year
what data is used to calculate GDP?
both quantities and prices of goods
If a country's GDP per capita rises, this means that...
i. the country has fewer poorer people
ii. some people in the country have more wealth
iii. the country's standard of living is rising
ii & iii
It is often said that _____ is the "main driver" the economy because its share of
GDP is larger than any of the other expenditure components.
consumption
, The most volatile component of GDP is....
investment
Private spending on tools, plant, and equipment that are used to produce future
output is called...
investment
the factor income approach to calculating GDP can be summarized as the
summation of ....
wages, interest, rent, & profit
Sydney buys a used car form Lemon Drop Used Cars in 2015 for $3,000. Francis,
a salesperson at Lemon Drop, receives $200 in commission for selling the car to
Sydney. How much does this transaction contribute to 2015 GDP?
$200
Last month Trevor purchased $177 of Swedish Fish from an online retailer in
Sweden. How does this transaction contribute to GDP in 2016?
Consumption increases by $177 and net exports fall $177
Questions and Answers| 2026/27 Updated
Adam Smith's metaphor of the "invisible hand" can lead to benefits to society
when...
institutions align the private interest with the social interest
When people choose to recycle and buy appliances that conserve on energy,
they are acting in ______ & _______.
the social interest, their self-interest
In an effort to clean air, many communities impose restrictions on the burning of
garbage. This policy causes more garbage to be buried underground, potentially
increasing groundwater contamination. What concept does this example
represent?
Trade-Offs
The opportunity cost of receiving a free ticked to the NCAA championship game
with a face-value of $450 and attending the game is:
there resale value of the lost market value of selling the ticket and the time to go
,What are the institutions that help foster the appropriate incentives for
economic growth?
a dependable legal system, property rights, & competitive & open markets
Gross Domestic Product (GDP) is best defined as the _____ value of all _____
goods and services that are produced _________.
market, final, within a country in 1 year
what data is used to calculate GDP?
both quantities and prices of goods
If a country's GDP per capita rises, this means that...
i. the country has fewer poorer people
ii. some people in the country have more wealth
iii. the country's standard of living is rising
ii & iii
It is often said that _____ is the "main driver" the economy because its share of
GDP is larger than any of the other expenditure components.
consumption
, The most volatile component of GDP is....
investment
Private spending on tools, plant, and equipment that are used to produce future
output is called...
investment
the factor income approach to calculating GDP can be summarized as the
summation of ....
wages, interest, rent, & profit
Sydney buys a used car form Lemon Drop Used Cars in 2015 for $3,000. Francis,
a salesperson at Lemon Drop, receives $200 in commission for selling the car to
Sydney. How much does this transaction contribute to 2015 GDP?
$200
Last month Trevor purchased $177 of Swedish Fish from an online retailer in
Sweden. How does this transaction contribute to GDP in 2016?
Consumption increases by $177 and net exports fall $177
