ECON 248 FINAL REVIEW EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) | GRADED A+ |
2026/2027 UPDATE | AU
In economics, the pleasure, happiness, or satisfaction received from a product is
called: - CORRECT ANSWERS-Utility
Joe sold gold coins for $1000 that he bought a year ago for $1000. He says, "At
least I didn't lose any money on my financial investment." His economist friend
points out that in effect he did lose money, because he could have received a 3
percent return on the $1000 if he had bought a bank certificate of deposit
instead of the coins. The economist's analysis in this case incorporates the idea
of: - CORRECT ANSWERS-Opportunity costs
A person should consume more of something when its marginal: - CORRECT
ANSWERS-Benefits exceeds its marginal costs
Economics may best be defined as the: - CORRECT ANSWERS-the social
science concerned with how individuals, institutions, and society make optimal
choices under conditions of scarcity
The economic perspective entails: - CORRECT ANSWERS-a comparison of
marginal benefits and marginal costs in decision making
The assertion that "there is no free lunch" means that: - CORRECT ANSWERS-
all production involves the use of scarce resources and thus the sacrifice of
alternative goods
, The process by which economists test hypotheses against facts to develop
theories, principles, and models is called: - CORRECT ANSWERS-the scientific
method
Ben says that "An increase in the tax on beer will raise its price." Holly argues
that "Taxes should be increased on beer because college students drink too
much." We can conclude that: - CORRECT ANSWERS-Holly's statement is
normative, but Ben's is positive
The economizing problem is: - CORRECT ANSWERS-the need to make choices
because economic wants exceed economic means
The budget line shows: - CORRECT ANSWERS-all possible combinations of
two goods that can be purchased, given money income and the prices of the
goods.
An economic system: - CORRECT ANSWERS-is a particular set of institutional
arrangements and a coordinating mechanism used to respond to the
economizing problem.
The term "laissez-faire" suggests that: - CORRECT ANSWERS-government
should not interfere with the operation of the economy.
Economic systems differ according to which two main characteristics? -
CORRECT ANSWERS-Who owns the factors of production and the methods
used to coordinate economic activity.
Command systems are also known as: - CORRECT ANSWERS-Communism
DETAILED ANSWERS (VERIFIED ANSWERS) | GRADED A+ |
2026/2027 UPDATE | AU
In economics, the pleasure, happiness, or satisfaction received from a product is
called: - CORRECT ANSWERS-Utility
Joe sold gold coins for $1000 that he bought a year ago for $1000. He says, "At
least I didn't lose any money on my financial investment." His economist friend
points out that in effect he did lose money, because he could have received a 3
percent return on the $1000 if he had bought a bank certificate of deposit
instead of the coins. The economist's analysis in this case incorporates the idea
of: - CORRECT ANSWERS-Opportunity costs
A person should consume more of something when its marginal: - CORRECT
ANSWERS-Benefits exceeds its marginal costs
Economics may best be defined as the: - CORRECT ANSWERS-the social
science concerned with how individuals, institutions, and society make optimal
choices under conditions of scarcity
The economic perspective entails: - CORRECT ANSWERS-a comparison of
marginal benefits and marginal costs in decision making
The assertion that "there is no free lunch" means that: - CORRECT ANSWERS-
all production involves the use of scarce resources and thus the sacrifice of
alternative goods
, The process by which economists test hypotheses against facts to develop
theories, principles, and models is called: - CORRECT ANSWERS-the scientific
method
Ben says that "An increase in the tax on beer will raise its price." Holly argues
that "Taxes should be increased on beer because college students drink too
much." We can conclude that: - CORRECT ANSWERS-Holly's statement is
normative, but Ben's is positive
The economizing problem is: - CORRECT ANSWERS-the need to make choices
because economic wants exceed economic means
The budget line shows: - CORRECT ANSWERS-all possible combinations of
two goods that can be purchased, given money income and the prices of the
goods.
An economic system: - CORRECT ANSWERS-is a particular set of institutional
arrangements and a coordinating mechanism used to respond to the
economizing problem.
The term "laissez-faire" suggests that: - CORRECT ANSWERS-government
should not interfere with the operation of the economy.
Economic systems differ according to which two main characteristics? -
CORRECT ANSWERS-Who owns the factors of production and the methods
used to coordinate economic activity.
Command systems are also known as: - CORRECT ANSWERS-Communism
