CLEMSON MACROECONOMICS 2120 FINAL EXAM
QUIZZES WITH 100% CORRECT ANSWERS .
\Adam Smith's metaphor of the "invisible hand" can lead to benefits to society when... -
Correct 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
______ & _______. - Correct 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? - Correct 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: - Correct 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? -
Correct 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 _________. - Correct Answer -market, final, within a country in 1
year
what data is used to calculate GDP? - Correct Answer -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 - Correct Answer -ii & iii
1
, 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. - Correct Answer -consumption
The most volatile component of GDP is.... - Correct Answer -investment
Private spending on tools, plant, and equipment that are used to produce future output is
called... - Correct Answer -investment
the factor income approach to calculating GDP can be summarized as the summation of .... -
Correct Answer -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? - Correct Answer -$200
Last month Trevor purchased $177 of Swedish Fish from an online retailer in Sweden. How
does this transaction contribute to GDP in 2016? - Correct Answer -Consumption increases
by $177 and net exports fall $177
Birmingham Steel sells to Winston Golf Club Manufacturers for $300,000. Winston sells its
golf clubs to Academy Sports for $1,000,000. Academy Sports sells Winston golf clubs for
$1,500,000. How much is added to GDP? - Correct Answer -$1,500,000
If you want to compare real GDP in 2010 and 2015, what prices can you use...
i. 2010 prices for GDP in both years
ii. 2015 prices for GDP in both years
iii. 2007 prices for GDP in 2010 and 2015 - Correct Answer -i, ii, & iii
Why is Nigeria considered to be a growth disaster in spite of the fact that it has large deposits
of oil? - Correct Answer -the occurrence of civil war, rulers who were dictators and spent the
wealth on arms purchases, & corruption that siphoned away oil wealth into secret Swiss bank
accounts.
The growth rate of GDP is...
a. GDP adjusted for changes in the inflation rate
2
QUIZZES WITH 100% CORRECT ANSWERS .
\Adam Smith's metaphor of the "invisible hand" can lead to benefits to society when... -
Correct 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
______ & _______. - Correct 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? - Correct 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: - Correct 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? -
Correct 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 _________. - Correct Answer -market, final, within a country in 1
year
what data is used to calculate GDP? - Correct Answer -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 - Correct Answer -ii & iii
1
, 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. - Correct Answer -consumption
The most volatile component of GDP is.... - Correct Answer -investment
Private spending on tools, plant, and equipment that are used to produce future output is
called... - Correct Answer -investment
the factor income approach to calculating GDP can be summarized as the summation of .... -
Correct Answer -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? - Correct Answer -$200
Last month Trevor purchased $177 of Swedish Fish from an online retailer in Sweden. How
does this transaction contribute to GDP in 2016? - Correct Answer -Consumption increases
by $177 and net exports fall $177
Birmingham Steel sells to Winston Golf Club Manufacturers for $300,000. Winston sells its
golf clubs to Academy Sports for $1,000,000. Academy Sports sells Winston golf clubs for
$1,500,000. How much is added to GDP? - Correct Answer -$1,500,000
If you want to compare real GDP in 2010 and 2015, what prices can you use...
i. 2010 prices for GDP in both years
ii. 2015 prices for GDP in both years
iii. 2007 prices for GDP in 2010 and 2015 - Correct Answer -i, ii, & iii
Why is Nigeria considered to be a growth disaster in spite of the fact that it has large deposits
of oil? - Correct Answer -the occurrence of civil war, rulers who were dictators and spent the
wealth on arms purchases, & corruption that siphoned away oil wealth into secret Swiss bank
accounts.
The growth rate of GDP is...
a. GDP adjusted for changes in the inflation rate
2
