Clemson maCroeConomiCs 2120 Final exam 2026 update
Questions WitH detailed VeriFied ansWers (100% CorreCt
ansWers) /alreadY Graded
Adam Smith's metaphor of the "invisible hand" can lead to benefits to society when... - ANSWER-
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 ______ &
_______. - ANSWER-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? - ANSWER-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: - ANSWER-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? - ANSWER-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 _________. - ANSWER-market, final, within a country in 1 year
What are the three main sources of funds for the U.S. federal government? - ANSWER-1. individual
income tax
2. corporate income tax
3. social security and medicare taxes
, When prices are slow to adjust to economic shocks as the New Keynesian model and people decide to
hold more cash because of a decrease in consumer confidence would cause.... - ANSWER-a decrease in
both the growth rate of output and inflation
The best type of negative shock for fiscal policy to respond to is a negative shock to .... - ANSWER-
aggregate demand
Expansionary fiscal policy to stimulate the economy may be less effective when... - ANSWER-the effects
of fiscal policy can often be offset by monetary policy
Crowding out is the _____ in private spending that occurs when government _____ spending. -
ANSWER-decrease, increase
To slow down an economy from overheating and having too much inflation the federal government can.....
- ANSWER-decrease government spending
Suppose the unemployment are mostly construction workers by profession. Which government spending
project will most effectively target unused labor resources? - ANSWER-renovating the nation's highway
system
A negative real shock causes the Solow growth curve to.... - ANSWER-shift inward
If the adult population of a country is 200 million, 90 million are employed, and 10 million unemployed,
this country's unemployment rate is.... - ANSWER-10%
If the adult population of a country is 200 million, 90 million are employed, and 10 million are unemployed,
this country's labor force is... - ANSWER-100 million
Questions WitH detailed VeriFied ansWers (100% CorreCt
ansWers) /alreadY Graded
Adam Smith's metaphor of the "invisible hand" can lead to benefits to society when... - ANSWER-
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 ______ &
_______. - ANSWER-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? - ANSWER-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: - ANSWER-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? - ANSWER-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 _________. - ANSWER-market, final, within a country in 1 year
What are the three main sources of funds for the U.S. federal government? - ANSWER-1. individual
income tax
2. corporate income tax
3. social security and medicare taxes
, When prices are slow to adjust to economic shocks as the New Keynesian model and people decide to
hold more cash because of a decrease in consumer confidence would cause.... - ANSWER-a decrease in
both the growth rate of output and inflation
The best type of negative shock for fiscal policy to respond to is a negative shock to .... - ANSWER-
aggregate demand
Expansionary fiscal policy to stimulate the economy may be less effective when... - ANSWER-the effects
of fiscal policy can often be offset by monetary policy
Crowding out is the _____ in private spending that occurs when government _____ spending. -
ANSWER-decrease, increase
To slow down an economy from overheating and having too much inflation the federal government can.....
- ANSWER-decrease government spending
Suppose the unemployment are mostly construction workers by profession. Which government spending
project will most effectively target unused labor resources? - ANSWER-renovating the nation's highway
system
A negative real shock causes the Solow growth curve to.... - ANSWER-shift inward
If the adult population of a country is 200 million, 90 million are employed, and 10 million unemployed,
this country's unemployment rate is.... - ANSWER-10%
If the adult population of a country is 200 million, 90 million are employed, and 10 million are unemployed,
this country's labor force is... - ANSWER-100 million
