FSU ECO2023 FINAL EXAM QUESTIONS
WITH 100%CORRECT ANSWERS 2026-
2027 UPDATED.
The economic way of thinking stresses that:
a. greed is the primary motivation for human action.
b. as the benefits of an option increase, people will be more likely to choose that option.
c. an objective value can be attached to physical goods.
d. as the cost of an option decreases, people will be less likely to choose that option. - Answer
b
Which of the following is most consistent with economizing behavior?
a. If you derive the same satisfaction from eating pizza and eating ice cream, it makes no
difference which one of the two you choose.
b. before voting, you should invest the time and energy to become fully informed on all of the
issues and candidates.
c. It never makes sense to hire someone to do something for you that you could do yourself.
d. If you get the same satisfaction from a chicken sandwich and a salad, you should purchase
the one that costs the least. - Answer d
Which of the following is most consistent with economizing behavior?
a. If you get the same satisfaction from a hamburger and a fish sandwich, you should purchase
the one that costs the most.
b. Even if you know how to paint, hiring someone to do the job is consistent with economizing
behavior, if your opportunity cost is high enough.
c. If the government provides a good free to citizens, the opportunity cost of the good is zero.
,d. If you get the same satisfaction from going to the opera and going to an art museum, it makes
no difference which you choose. - Answer b
Ethan washes and irons his own shirts. Sophia, his boss, sends her clothes to a laundry. Which is
the most plausible economic explanation for this difference?
a. Ethan must enjoy ironing more than Sophia does.
b. Ethan must be better at ironing than Sophia is.
c. The opportunity cost of ironing is greater for Ethan.
d. Sophia has a higher opportunity cost of laundering her clothes than Ethan does. - Answer d
"If Tom had twice as much money, he could consume twice as much. If everyone had twice as
much money, they could consume twice as much." This quote illustrates
a. the difference between positive and normative economics.
b. the fallacy of composition.
c. that association is not causation.
d. the law of unintended consequences. - Answer b
Recent legislation provides parents with a substantial reduction in their personal income tax
liability for each child that they have. The economic way of thinking indicates that legislation of
this type will
a. make it more costly for parents to provide for their children.
b. reduce the value of children to their parents and, therefore, lead to a reduction in the birth
rate.
c. reduce the after-tax cost of raising children and, therefore, increase the birth rate.
,d. exert no impact on either the cost of raising children or the birth rate since having children is
a not an economic activity. - Answer c
In voluntary exchange, if the seller of a product gains,
a. the buyer will generally lose an amount greater than the gain to the seller.
b. the buyer must lose an amount equal to what the seller gains.
c. someone else must lose an equal amount.
d. the buyer must also gain; mutual gain provides the foundation for exchange. - Answer d
Noah values his car at $10,000, and Emily values it at $14,000. If Emily buys it from Noah for
$11,000, which of the following is true?
a. Noah gains $1,000 of value, and Emily gains $3,000 of value.
b. Noah gains $11,000 of value, and Emily loses $11,000 of value.
c. Noah gains $10,000 of value, and Emily loses $14,000 of value.
`
d. Noah and Emily both gain $11,000 of value. - Answer a
The number of cattle slaughtered every year for meat far exceeds the number of elephants
slaughtered every year for their ivory. Despite this, cows can be found everywhere while
elephants are on the verge of extinction in some countries. Which of the following best explains
this difference?
a. Cows can be privately owned while in many countries elephants can not.
b. The demand for ivory far exceeds the demand for beef.
c. Animals slaughtered for their meat are generally better conserved by humans than animals
slaughtered for nonfood uses.
, d. People tend to protest more every year to prevent cow extinction than they do for elephant
extinction. - Answer a
In Europe during the 14th century, the Black Plague killed 24 million people or close to 37
percent of the population. How would this affect the production possibilities curves for the
countries of Europe at that time?
a. The production possibilities curves for these countries would have shifted outward.
b. The production possibilities curves for these countries would have shifted inward.
c. The production possibilities curves for these countries would have been unaffected.
d. This would have been illustrated by a movement along the production possibilities curves for
these countries, but it would not have shifted them. - Answer b
If Terrell can produce more bagels in one day than Zori can produce in one day, then
a. Terrell has a comparative advantage in the production of bagels.
b. Zori has a comparative advantage in the production of bagels.
c. Terrell has an absolute advantage in the production of bagels.
d. Terrell should produce bagels and Zori should spend her time on a different activity. - Answer
c
A demand curve for flowers would show the
a. number of flowers the floral shop is willing to sell at various prices.
b. number of people who need flowers.
c. quantity of people who want to buy these flowers.
d. number of flowers that will be purchased at various prices. - Answer d
WITH 100%CORRECT ANSWERS 2026-
2027 UPDATED.
The economic way of thinking stresses that:
a. greed is the primary motivation for human action.
b. as the benefits of an option increase, people will be more likely to choose that option.
c. an objective value can be attached to physical goods.
d. as the cost of an option decreases, people will be less likely to choose that option. - Answer
b
Which of the following is most consistent with economizing behavior?
a. If you derive the same satisfaction from eating pizza and eating ice cream, it makes no
difference which one of the two you choose.
b. before voting, you should invest the time and energy to become fully informed on all of the
issues and candidates.
c. It never makes sense to hire someone to do something for you that you could do yourself.
d. If you get the same satisfaction from a chicken sandwich and a salad, you should purchase
the one that costs the least. - Answer d
Which of the following is most consistent with economizing behavior?
a. If you get the same satisfaction from a hamburger and a fish sandwich, you should purchase
the one that costs the most.
b. Even if you know how to paint, hiring someone to do the job is consistent with economizing
behavior, if your opportunity cost is high enough.
c. If the government provides a good free to citizens, the opportunity cost of the good is zero.
,d. If you get the same satisfaction from going to the opera and going to an art museum, it makes
no difference which you choose. - Answer b
Ethan washes and irons his own shirts. Sophia, his boss, sends her clothes to a laundry. Which is
the most plausible economic explanation for this difference?
a. Ethan must enjoy ironing more than Sophia does.
b. Ethan must be better at ironing than Sophia is.
c. The opportunity cost of ironing is greater for Ethan.
d. Sophia has a higher opportunity cost of laundering her clothes than Ethan does. - Answer d
"If Tom had twice as much money, he could consume twice as much. If everyone had twice as
much money, they could consume twice as much." This quote illustrates
a. the difference between positive and normative economics.
b. the fallacy of composition.
c. that association is not causation.
d. the law of unintended consequences. - Answer b
Recent legislation provides parents with a substantial reduction in their personal income tax
liability for each child that they have. The economic way of thinking indicates that legislation of
this type will
a. make it more costly for parents to provide for their children.
b. reduce the value of children to their parents and, therefore, lead to a reduction in the birth
rate.
c. reduce the after-tax cost of raising children and, therefore, increase the birth rate.
,d. exert no impact on either the cost of raising children or the birth rate since having children is
a not an economic activity. - Answer c
In voluntary exchange, if the seller of a product gains,
a. the buyer will generally lose an amount greater than the gain to the seller.
b. the buyer must lose an amount equal to what the seller gains.
c. someone else must lose an equal amount.
d. the buyer must also gain; mutual gain provides the foundation for exchange. - Answer d
Noah values his car at $10,000, and Emily values it at $14,000. If Emily buys it from Noah for
$11,000, which of the following is true?
a. Noah gains $1,000 of value, and Emily gains $3,000 of value.
b. Noah gains $11,000 of value, and Emily loses $11,000 of value.
c. Noah gains $10,000 of value, and Emily loses $14,000 of value.
`
d. Noah and Emily both gain $11,000 of value. - Answer a
The number of cattle slaughtered every year for meat far exceeds the number of elephants
slaughtered every year for their ivory. Despite this, cows can be found everywhere while
elephants are on the verge of extinction in some countries. Which of the following best explains
this difference?
a. Cows can be privately owned while in many countries elephants can not.
b. The demand for ivory far exceeds the demand for beef.
c. Animals slaughtered for their meat are generally better conserved by humans than animals
slaughtered for nonfood uses.
, d. People tend to protest more every year to prevent cow extinction than they do for elephant
extinction. - Answer a
In Europe during the 14th century, the Black Plague killed 24 million people or close to 37
percent of the population. How would this affect the production possibilities curves for the
countries of Europe at that time?
a. The production possibilities curves for these countries would have shifted outward.
b. The production possibilities curves for these countries would have shifted inward.
c. The production possibilities curves for these countries would have been unaffected.
d. This would have been illustrated by a movement along the production possibilities curves for
these countries, but it would not have shifted them. - Answer b
If Terrell can produce more bagels in one day than Zori can produce in one day, then
a. Terrell has a comparative advantage in the production of bagels.
b. Zori has a comparative advantage in the production of bagels.
c. Terrell has an absolute advantage in the production of bagels.
d. Terrell should produce bagels and Zori should spend her time on a different activity. - Answer
c
A demand curve for flowers would show the
a. number of flowers the floral shop is willing to sell at various prices.
b. number of people who need flowers.
c. quantity of people who want to buy these flowers.
d. number of flowers that will be purchased at various prices. - Answer d
