Clemson Macroeconomics 2120 Final Exam
Complete Questions and Guide Answers
100% Verified Graded A+
1. Adam Smith's metaphor of the "invisible hand" can lead to benefits to society
when...
Answer: institutions align the private interest with the social interest
2. When people choose to recycle and buy appliances that conserve on energy,
they are acting in & .
Answer: the social interest, their self-interest
3. In an effort to clean air, many communities impose restrictions on the burn-
ing of garbage. This policy causes more garbage to be buried underground,
potentially increasing groundwater contamination. What concept does this
example represent?
Answer: Trade-Otts
4. The opportunity cost of receiving a free ticked to the NCAA championship
,game with a face-value of $450 and attending the game is
Answer: there resale value of the lost market value of selling the ticket and the time to go
5. What are the institutions that help foster the appropriate incentives for
economic growth?
Answer: a dependable legal system, property rights, & competitive & open markets
6. Gross Domestic Product (GDP) is best defined as the value of all
goods and services that are produced .
Answer: market, final, within a country in 1 year
7. what data is used to calculate GDP?
Answer: both quantities and prices of goods
8. 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
Answer: ii & iii
9. 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.
Answer: consumption
10. The most volatile component of GDP is....
, Answer: investment
11. Private spending on tools, plant, and equipment that are used to produce
future output is called...
Answer: investment
12. the factor income approach to calculating GDP can be summarized as the
summation of ....
Answer: wages, interest, rent, & profit
13. Sydney buys a used car form Lemon Drop Used Cars in 2015 for $3,000.
Francis, a salesperson at Lemon Drop, receives $200 in commission for selling
the car to Sydney. How much does this transaction contribute to 2015 GDP?-
Answer: $200
14. Last month Trevor purchased $177 of Swedish Fish from an online retailer
in Sweden. How does this transaction contribute to GDP in 2016?
Answer: Consumption increases by $177 and net exports fall $177
15. Birmingham Steel sells to Winston Golf Club Manufacturers for $300,000.
Winston sells its golf clubs to Academy Sports for $1,000,000. Academy Sports
sells Winston golf clubs for $1,500,000. How much is added to GDP?
Answer: $1,500,000
Complete Questions and Guide Answers
100% Verified Graded A+
1. Adam Smith's metaphor of the "invisible hand" can lead to benefits to society
when...
Answer: institutions align the private interest with the social interest
2. When people choose to recycle and buy appliances that conserve on energy,
they are acting in & .
Answer: the social interest, their self-interest
3. In an effort to clean air, many communities impose restrictions on the burn-
ing of garbage. This policy causes more garbage to be buried underground,
potentially increasing groundwater contamination. What concept does this
example represent?
Answer: Trade-Otts
4. The opportunity cost of receiving a free ticked to the NCAA championship
,game with a face-value of $450 and attending the game is
Answer: there resale value of the lost market value of selling the ticket and the time to go
5. What are the institutions that help foster the appropriate incentives for
economic growth?
Answer: a dependable legal system, property rights, & competitive & open markets
6. Gross Domestic Product (GDP) is best defined as the value of all
goods and services that are produced .
Answer: market, final, within a country in 1 year
7. what data is used to calculate GDP?
Answer: both quantities and prices of goods
8. 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
Answer: ii & iii
9. 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.
Answer: consumption
10. The most volatile component of GDP is....
, Answer: investment
11. Private spending on tools, plant, and equipment that are used to produce
future output is called...
Answer: investment
12. the factor income approach to calculating GDP can be summarized as the
summation of ....
Answer: wages, interest, rent, & profit
13. Sydney buys a used car form Lemon Drop Used Cars in 2015 for $3,000.
Francis, a salesperson at Lemon Drop, receives $200 in commission for selling
the car to Sydney. How much does this transaction contribute to 2015 GDP?-
Answer: $200
14. Last month Trevor purchased $177 of Swedish Fish from an online retailer
in Sweden. How does this transaction contribute to GDP in 2016?
Answer: Consumption increases by $177 and net exports fall $177
15. Birmingham Steel sells to Winston Golf Club Manufacturers for $300,000.
Winston sells its golf clubs to Academy Sports for $1,000,000. Academy Sports
sells Winston golf clubs for $1,500,000. How much is added to GDP?
Answer: $1,500,000
