ECON 2110 - CLEMSON EXAM 1
QUESTIONS WITH ANSWERS UPDATED .
constantly facing choices because of scarce time - Correct Answer -scarcity
driving force of economics - Correct Answer -scarcity
provides a model of how resources are allocated and how people make these choices -
Correct Answer -economics
studies choice and its implication - Correct Answer -micro
studies performance of national economics and policies that governments use - Correct
Answer -macro
Economic Model (5) - Correct Answer -incentives matter; good institutions align self with
social interest; trade-offs everywhere; rational people make choices at the margin; trade
makes people better off
total enjoyment of the item - Correct Answer -total enjoyment
how much more benefit you get from buying one compared to before - Correct Answer -
marginal benefit
total cost = - Correct Answer -cost of x amount of y
how much more another slice will cost - Correct Answer -marginal cost
how much more compared to price before - Correct Answer -marginal
1
, addresses the consequences of an action - Correct Answer -positive statement
"if the price of potato chips fall, people will eat more potato chips" is an example of... -
Correct Answer -a positive statement
positive statement - Correct Answer -solid fact
normative statement - Correct Answer -opinion
expresses a value judgement - Correct Answer -normative statement
"people eat too many potato chips" is an example of... - Correct Answer -a normative
statement
makes us all better off - Correct Answer -trade
to specialize in an activity in which you have the lower opportunity cost - Correct Answer -
comparative advantage
allows for specialization which endures opportunity costs - Correct Answer -trade
can produce a good using fewer resources - Correct Answer -absolute advantage
based on optimizing behavior by individual decision - Correct Answer -supply and demand
put supply and demand together and you find - Correct Answer -equilibrium
how much is a good valued - Correct Answer -depends on marginal benefits the consumer
gets from consuming the good
the relationship between price and quantity - Correct Answer -demand
2
QUESTIONS WITH ANSWERS UPDATED .
constantly facing choices because of scarce time - Correct Answer -scarcity
driving force of economics - Correct Answer -scarcity
provides a model of how resources are allocated and how people make these choices -
Correct Answer -economics
studies choice and its implication - Correct Answer -micro
studies performance of national economics and policies that governments use - Correct
Answer -macro
Economic Model (5) - Correct Answer -incentives matter; good institutions align self with
social interest; trade-offs everywhere; rational people make choices at the margin; trade
makes people better off
total enjoyment of the item - Correct Answer -total enjoyment
how much more benefit you get from buying one compared to before - Correct Answer -
marginal benefit
total cost = - Correct Answer -cost of x amount of y
how much more another slice will cost - Correct Answer -marginal cost
how much more compared to price before - Correct Answer -marginal
1
, addresses the consequences of an action - Correct Answer -positive statement
"if the price of potato chips fall, people will eat more potato chips" is an example of... -
Correct Answer -a positive statement
positive statement - Correct Answer -solid fact
normative statement - Correct Answer -opinion
expresses a value judgement - Correct Answer -normative statement
"people eat too many potato chips" is an example of... - Correct Answer -a normative
statement
makes us all better off - Correct Answer -trade
to specialize in an activity in which you have the lower opportunity cost - Correct Answer -
comparative advantage
allows for specialization which endures opportunity costs - Correct Answer -trade
can produce a good using fewer resources - Correct Answer -absolute advantage
based on optimizing behavior by individual decision - Correct Answer -supply and demand
put supply and demand together and you find - Correct Answer -equilibrium
how much is a good valued - Correct Answer -depends on marginal benefits the consumer
gets from consuming the good
the relationship between price and quantity - Correct Answer -demand
2
