Clemson Macroeconomics 2120 Final
Exam Questions and Answers 100%
Solved
Adam Smith's metaphor of the "invisible hand" can lead to benefits to
society when... - ✔✔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 ______ & _______. - ✔✔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? - ✔✔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: - ✔✔there
resale value of the lost market value of selling the ticket and the time to go
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, What are the institutions that help foster the appropriate incentives for
economic growth? - ✔✔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 _________. - ✔✔market,
final, within a country in 1 year
what data is used to calculate GDP? - ✔✔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 - ✔✔ii & iii
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. -
✔✔consumption
The most volatile component of GDP is.... - ✔✔investment
Private spending on tools, plant, and equipment that are used to produce
future output is called... - ✔✔investment
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
Exam Questions and Answers 100%
Solved
Adam Smith's metaphor of the "invisible hand" can lead to benefits to
society when... - ✔✔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 ______ & _______. - ✔✔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? - ✔✔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: - ✔✔there
resale value of the lost market value of selling the ticket and the time to go
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, What are the institutions that help foster the appropriate incentives for
economic growth? - ✔✔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 _________. - ✔✔market,
final, within a country in 1 year
what data is used to calculate GDP? - ✔✔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 - ✔✔ii & iii
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. -
✔✔consumption
The most volatile component of GDP is.... - ✔✔investment
Private spending on tools, plant, and equipment that are used to produce
future output is called... - ✔✔investment
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
