ECON 102 QUESTIONS AND ANSWERS LATEST UPDATED
VERSION, GRADED A+.
With which statement would economists most likely DISAGREE?
Production resources and inputs unlimited.
Macroeconomics is the branch of economics that studies:
fluctuations in the overall level of business activity.
All of the following are positive statements EXCEPT:
Everyone should have access to health care.
An opportunity cost arises:
whenever any choice is made.
The focal point of economic activity is:
individual choice.
Which of the following is a normative statement?
A laptop makes a good graduation gift.
Bill Gates decided to drop out of college to found a start-up software company that eventually
became Microsoft. The choice between staying in college to earn a degree or pursuing his dream to
create a new company involved:
an opportunity cost.
Which of the following is NOT considered to be a resource?
economic aggregates
Scarcity of resources:
means that choices have to be made.
Suppose you get a college scholarship so that tuition is free. The college education will increase your
income by $400,000 over your lifetime. Your other alternative is to work in a job after high school that
pays $25,000 per year. Room and board in both cases cost you $15,000 per year. Compare the
opportunity costs of the two situations.
The opportunity cost of college is less than the opportunity cost of working.
A model that helps economists think about the trade-offs that every economy faces is called:
the production possibility frontier.
VERSION, GRADED A+.
With which statement would economists most likely DISAGREE?
Production resources and inputs unlimited.
Macroeconomics is the branch of economics that studies:
fluctuations in the overall level of business activity.
All of the following are positive statements EXCEPT:
Everyone should have access to health care.
An opportunity cost arises:
whenever any choice is made.
The focal point of economic activity is:
individual choice.
Which of the following is a normative statement?
A laptop makes a good graduation gift.
Bill Gates decided to drop out of college to found a start-up software company that eventually
became Microsoft. The choice between staying in college to earn a degree or pursuing his dream to
create a new company involved:
an opportunity cost.
Which of the following is NOT considered to be a resource?
economic aggregates
Scarcity of resources:
means that choices have to be made.
Suppose you get a college scholarship so that tuition is free. The college education will increase your
income by $400,000 over your lifetime. Your other alternative is to work in a job after high school that
pays $25,000 per year. Room and board in both cases cost you $15,000 per year. Compare the
opportunity costs of the two situations.
The opportunity cost of college is less than the opportunity cost of working.
A model that helps economists think about the trade-offs that every economy faces is called:
the production possibility frontier.
