ECON EXAM 1- CLEMSON EXAM
QUESTIONS WITH 100% CORRECT
ANSWERS .
The economic model - Correct Answer -is about how people make choices
In economics, a good is "scare" when - Correct Answer -something must be given up to get
more of it
If people are "rational" in the economic sense, they - Correct Answer --make mistakes
-dont put making money before any other goal
-dont only seek their own welfare
The fact that more pedestrians were killed after laws made cars safer demonstrates that -
Correct Answer -People respond to incentives
After Ben agrees to pay Emilio $500 for an old baseball card, it must be the case that: -
Correct Answer -Both Ben and Emilio are at least as well-off as before
The decision whether to purchase the breakfast "all you can eat" buffet versus ordering from
the menu at fixed prices - Correct Answer -is a marginal decision
The opportunity cost to college athletes on scholarship who stay in school is - Correct
Answer -the wages they could make otherwise
Laura is a manager for HP, and must decide whether to produce a few additional printers. She
is choosing at the margin when she compares - Correct Answer -The extra revenue from
selling a few additional printers to the extra costs of producing the additional printers
1
, If you've bought an $80 sticker to park on campus, and you plan to park on campus eighty
times before the semester ends, the marginal cost to you each time you park is - Correct
Answer -$0
Which of the following is an example of a scarce good?
-Cocoa-Cola
-Insulin
-Diamonds
-All are scarce goods
-Just B and C - Correct Answer -All are scarce goods
If you decide to go to a movie this evening rather than study economics, you thereby
demonstrate that - Correct Answer -at the margin, you value two hours of movie watching
more than two hours of studying economics
Quantity: 1 2 3 4 5
Marginal benefit $15 $10 $8 $7 $2
Marginal cost $6 $7 $7 $8 $9
1. Use the marginal principle to predict how much X will be consumed
2. If those benefits and costs are yours, how much would you be willing to pay for a pass that
would let you consume all the X you wanted? - Correct Answer -1. 3
2. at least $42
The difference between a marginal cost and an opportunity cost is - Correct Answer -there is
no difference
Smith accidentally runs his car off the road into deep snow. Jones happens along in a tow
truck, and offers to haul Smith out for the outrageous price of $300. Smith, though angered
by the high price, considers he has no choice and pays $300. Smith's welfare was ________
and Jones' was ________ as a result of Jones passing by. - Correct Answer -enhanced,
enhanced
2
QUESTIONS WITH 100% CORRECT
ANSWERS .
The economic model - Correct Answer -is about how people make choices
In economics, a good is "scare" when - Correct Answer -something must be given up to get
more of it
If people are "rational" in the economic sense, they - Correct Answer --make mistakes
-dont put making money before any other goal
-dont only seek their own welfare
The fact that more pedestrians were killed after laws made cars safer demonstrates that -
Correct Answer -People respond to incentives
After Ben agrees to pay Emilio $500 for an old baseball card, it must be the case that: -
Correct Answer -Both Ben and Emilio are at least as well-off as before
The decision whether to purchase the breakfast "all you can eat" buffet versus ordering from
the menu at fixed prices - Correct Answer -is a marginal decision
The opportunity cost to college athletes on scholarship who stay in school is - Correct
Answer -the wages they could make otherwise
Laura is a manager for HP, and must decide whether to produce a few additional printers. She
is choosing at the margin when she compares - Correct Answer -The extra revenue from
selling a few additional printers to the extra costs of producing the additional printers
1
, If you've bought an $80 sticker to park on campus, and you plan to park on campus eighty
times before the semester ends, the marginal cost to you each time you park is - Correct
Answer -$0
Which of the following is an example of a scarce good?
-Cocoa-Cola
-Insulin
-Diamonds
-All are scarce goods
-Just B and C - Correct Answer -All are scarce goods
If you decide to go to a movie this evening rather than study economics, you thereby
demonstrate that - Correct Answer -at the margin, you value two hours of movie watching
more than two hours of studying economics
Quantity: 1 2 3 4 5
Marginal benefit $15 $10 $8 $7 $2
Marginal cost $6 $7 $7 $8 $9
1. Use the marginal principle to predict how much X will be consumed
2. If those benefits and costs are yours, how much would you be willing to pay for a pass that
would let you consume all the X you wanted? - Correct Answer -1. 3
2. at least $42
The difference between a marginal cost and an opportunity cost is - Correct Answer -there is
no difference
Smith accidentally runs his car off the road into deep snow. Jones happens along in a tow
truck, and offers to haul Smith out for the outrageous price of $300. Smith, though angered
by the high price, considers he has no choice and pays $300. Smith's welfare was ________
and Jones' was ________ as a result of Jones passing by. - Correct Answer -enhanced,
enhanced
2
