ECON 101 CORE MAIN EXAMINATION 2026 SET
QUESTIONS AND ANSWERS SURE A+
✔✔In economics we learn that
-tradeoffs allow us to have more of everything we value.
-tradeoffs allow us to avoid the problem of opportunity cost.
-opportunity costs are all of the possible alternatives given up when we make a choice.
-None of these answers is correct. - ✔✔None of these answers is correct.
✔✔Jane produces only corn, measured in tons, and cloth, measured in bolts. For her,
the opportunity cost of one more ton of corn is
-the ratio of all the tons of corn she produces to all the bolts of cloth she produces.
-the ratio of all the bolts of cloth she produces to all the tons of corn she produces.
-the same as the opportunity cost of one more bolt of cloth.
-the inverse of the opportunity cost of one more bolt of cloth. - ✔✔the inverse of the
opportunity cost of one more bolt of cloth.
✔✔In markets, people's decisions are coordinated by
-learning-by-doing.
-changes in property rights.
-specialization according to absolute advantage.
-adjustments in prices. - ✔✔adjustments in prices.
,✔✔From 8 to 11 p.m., Sam can either attend a basketball game, a hockey match or the
symphony. Suppose that Sam decides to attend the hockey match and thinks to herself
that if she did not go to the match she would go to the symphony. Then the opportunity
cost of attending the hockey match is
-going to the basketball game.
-three hours of time.
-going to the symphony and the basketball game.
-going to the symphony. - ✔✔going to the symphony.
✔✔In terms of dollars, the marginal benefit of working five days a week instead of four
days a week is
-the wages received for the fifth day of work.
-the wages received for 5 days of work.
-the wages received for 4 days of work.
-None of these answers is correct. - ✔✔the wages received for the fifth day of work.
✔✔When firms in an economy start producing more computers and fewer televisions,
they are answering the ________ part of one of the two big economic questions.
-"where"
-"when"
-"what"
-"for whom" - ✔✔"what"
✔✔Normative economic statements
-deal with economic hypotheses that are not well-established laws.
-describe what ought to be.
-describe what is rather than what ought to be.
-describe the process of economic policy-making. - ✔✔describe what ought to be.
✔✔In the figure above, moving from production at point d to production at point a
requires
-technological change.
-a decrease in unemployment.
-decreasing the output of consumer goods in order to boost the output of capital goods.
-both capital accumulation and a decrease in unemployment. - ✔✔decreasing the
output of consumer goods in order to boost the output of capital goods.
✔✔Scarcity exists because
-our wants exceed the resources available to satisfy them.
-society and people are greedy and wasteful.
-poor people need more food and other goods.
-of the inefficient choices we make. - ✔✔our wants exceed the resources available to
satisfy them.
, ✔✔Which of the following is a normative statement?
-The current butter surplus is the result of federal policies.
-The government's cuts in welfare spending impose an unfair hardship on the poor.
-Next year's inflation rate will be under 4 percent.
-Consumers will buy more gasoline over the Christmas holiday even if the price of gas
is 10 cents higher than it was during the Thanksgiving holiday. - ✔✔The government's
cuts in welfare spending impose an unfair hardship on the poor.
✔✔If property rights are not clearly defined and enforced, then
-incentives for specialization based on comparative advantage are weakened.
-some potential gains from specialization and trade are lost.
-resources are devoted to protecting possessions rather than to production.
-All of these answers are correct. - ✔✔All of these answers are correct.
✔✔Which of the following is a macroeconomic issue?
-the hiring decisions that a business makes
-the purchasing decisions that an individual consumer makes
-the effect of increasing the money supply on inflation
-the effect of an increase in the tax on cigarettes on cigarette sales - ✔✔the effect of
increasing the money supply on inflation
✔✔Country A can produce 1 cello by giving up the production of 5 guitars. Country B
can produce 1 guitar by giving up the production of 4 cellos. In which good does country
A have a comparative advantage?
-guitars
-cellos
-both goods
-neither good - ✔✔guitars
✔✔Which of the following is NOT an example of an opportunity cost?
-By choosing to attend college, Jean was not able to continue working as an electrician;
as a result, she gave up more than $85,000 in earnings while she was in college.
-Because Mary is now being paid a higher wage, she can afford to buy a new car even
though she is moving into a bigger apartment.
-Because David used all of his vacation time to paint his house, he was unable to visit
the Caribbean last year.
-By spending Thursday night studying for an economics exam, a student was unable to
complete a homework assignment for calculus class. - ✔✔Because Mary is now being
paid a higher wage, she can afford to buy a new car even though she is moving into a
bigger apartment.
✔✔Missouri can produce 10,000 tons of pecans per year or 5,000 tons of pears per
year. Washington can produce 12,000 tons of pecans per year or 48,000 tons of pears
per year. If these two states were to engage in trade, which of the following is TRUE?
-Missouri would specialize in pear production and trade pears to Washington pecans.
QUESTIONS AND ANSWERS SURE A+
✔✔In economics we learn that
-tradeoffs allow us to have more of everything we value.
-tradeoffs allow us to avoid the problem of opportunity cost.
-opportunity costs are all of the possible alternatives given up when we make a choice.
-None of these answers is correct. - ✔✔None of these answers is correct.
✔✔Jane produces only corn, measured in tons, and cloth, measured in bolts. For her,
the opportunity cost of one more ton of corn is
-the ratio of all the tons of corn she produces to all the bolts of cloth she produces.
-the ratio of all the bolts of cloth she produces to all the tons of corn she produces.
-the same as the opportunity cost of one more bolt of cloth.
-the inverse of the opportunity cost of one more bolt of cloth. - ✔✔the inverse of the
opportunity cost of one more bolt of cloth.
✔✔In markets, people's decisions are coordinated by
-learning-by-doing.
-changes in property rights.
-specialization according to absolute advantage.
-adjustments in prices. - ✔✔adjustments in prices.
,✔✔From 8 to 11 p.m., Sam can either attend a basketball game, a hockey match or the
symphony. Suppose that Sam decides to attend the hockey match and thinks to herself
that if she did not go to the match she would go to the symphony. Then the opportunity
cost of attending the hockey match is
-going to the basketball game.
-three hours of time.
-going to the symphony and the basketball game.
-going to the symphony. - ✔✔going to the symphony.
✔✔In terms of dollars, the marginal benefit of working five days a week instead of four
days a week is
-the wages received for the fifth day of work.
-the wages received for 5 days of work.
-the wages received for 4 days of work.
-None of these answers is correct. - ✔✔the wages received for the fifth day of work.
✔✔When firms in an economy start producing more computers and fewer televisions,
they are answering the ________ part of one of the two big economic questions.
-"where"
-"when"
-"what"
-"for whom" - ✔✔"what"
✔✔Normative economic statements
-deal with economic hypotheses that are not well-established laws.
-describe what ought to be.
-describe what is rather than what ought to be.
-describe the process of economic policy-making. - ✔✔describe what ought to be.
✔✔In the figure above, moving from production at point d to production at point a
requires
-technological change.
-a decrease in unemployment.
-decreasing the output of consumer goods in order to boost the output of capital goods.
-both capital accumulation and a decrease in unemployment. - ✔✔decreasing the
output of consumer goods in order to boost the output of capital goods.
✔✔Scarcity exists because
-our wants exceed the resources available to satisfy them.
-society and people are greedy and wasteful.
-poor people need more food and other goods.
-of the inefficient choices we make. - ✔✔our wants exceed the resources available to
satisfy them.
, ✔✔Which of the following is a normative statement?
-The current butter surplus is the result of federal policies.
-The government's cuts in welfare spending impose an unfair hardship on the poor.
-Next year's inflation rate will be under 4 percent.
-Consumers will buy more gasoline over the Christmas holiday even if the price of gas
is 10 cents higher than it was during the Thanksgiving holiday. - ✔✔The government's
cuts in welfare spending impose an unfair hardship on the poor.
✔✔If property rights are not clearly defined and enforced, then
-incentives for specialization based on comparative advantage are weakened.
-some potential gains from specialization and trade are lost.
-resources are devoted to protecting possessions rather than to production.
-All of these answers are correct. - ✔✔All of these answers are correct.
✔✔Which of the following is a macroeconomic issue?
-the hiring decisions that a business makes
-the purchasing decisions that an individual consumer makes
-the effect of increasing the money supply on inflation
-the effect of an increase in the tax on cigarettes on cigarette sales - ✔✔the effect of
increasing the money supply on inflation
✔✔Country A can produce 1 cello by giving up the production of 5 guitars. Country B
can produce 1 guitar by giving up the production of 4 cellos. In which good does country
A have a comparative advantage?
-guitars
-cellos
-both goods
-neither good - ✔✔guitars
✔✔Which of the following is NOT an example of an opportunity cost?
-By choosing to attend college, Jean was not able to continue working as an electrician;
as a result, she gave up more than $85,000 in earnings while she was in college.
-Because Mary is now being paid a higher wage, she can afford to buy a new car even
though she is moving into a bigger apartment.
-Because David used all of his vacation time to paint his house, he was unable to visit
the Caribbean last year.
-By spending Thursday night studying for an economics exam, a student was unable to
complete a homework assignment for calculus class. - ✔✔Because Mary is now being
paid a higher wage, she can afford to buy a new car even though she is moving into a
bigger apartment.
✔✔Missouri can produce 10,000 tons of pecans per year or 5,000 tons of pears per
year. Washington can produce 12,000 tons of pecans per year or 48,000 tons of pears
per year. If these two states were to engage in trade, which of the following is TRUE?
-Missouri would specialize in pear production and trade pears to Washington pecans.
