ECON 248 EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) |
GRADED A+ | NEW UPDATE 2026
Opportunity cost is
Select one:
a. the highest-valued alternative that we give up to get something.
b. your value of leisure.
c. the marginal benefit from an activity.
d. the value of your favourite activity.
e. the money you spend on food, shelter, and clothing. - ANSWERS a. the
highest-valued alternative that we give up to get something.
All of the following topics, except one, are valid macroeconomic topics. Which one
is the exception?
Select one:
a. the effect of the government budget deficit on inflation
b. the reasons the labour force in a country decreases
c. the reasons the average price level in a country falls
d. the cause of increasing unemployment
e. the reasons the price of coffee fluctuates - ANSWERS e. the reasons the
price of coffee fluctuates
Economics is best defined as the study of
,Select one:
a. how society manages its scarce resources.
b. how to run a business most profitably.
c. how to predict inflation, unemployment, and stock prices.
d. how the government can stop the harm from unchecked self-interest.
e. how to produce products. - ANSWERS a. how society manages its scarce
resources.
What is an economic model?
Select one:
a. a fully detailed, realistic description of the economy
b. a mechanical machine that replicates the functioning of the economy
c. a simplified representation of some aspects of the economy
d. a computer program that predicts the future of the economy
e. all of the above - ANSWERS c. a simplified representation of some aspects
of the economy
The two big economic questions
Select one:
a. involve self-interest only.
b. involve both self-interest and social interest.
c. do not arise from scarcity.
d. involve only social interest.
e. involve neither self-interest nor social interest. - ANSWERS b. involve both
self-interest and social interest.
,To earn income, people sell the services of the factors of production they own.
Land earns ________ ; labour earns ________; and capital earns ________.
Select one:
a. interest or profit / wages / wages
b. wages / interest or profit / rent
c. interest or profit / wages / rent
d. interest or profit / rent / wages
e. rent / wages / interest or profit - ANSWERS e. rent / wages / interest or
profit
Factors of production is a term that can be used interchangeably with
Select one:
a. models.
b. consumer goods.
c. either resources or inputs.
d. opportunity cost.
e. technologies. - ANSWERS c. either resources or inputs.
All of the following statements, except one, are valid examples of the way
economists use the term scarcity. Which one is the exception?
Select one:
a. Households face a scarcity of income.
b. Individuals face a scarcity of time.
c. Economies face a scarcity of resources.
, d. The world faces a scarcity of ideas.
e. Firms face a scarcity of qualified workers. - ANSWERS d. The world faces a
scarcity of ideas.
"The rich should face higher income tax rates than the poor." This is an example of
Select one:
a. a negative statement.
b. a normative statement.
c. neither a normative nor a positive statement.
d. a positive statement.
e. economic reasoning. - ANSWERS b. a normative statement.
The fact that human wants cannot be fully satisfied with available resources is
called the problem of
Select one:
a. normative economics.
b. marginal cost.
c. the big tradeoff.
d. scarcity.
e. opportunity cost. - ANSWERS d. scarcity.
Refer to the figure below.
At price P2,
Select one:
DETAILED ANSWERS (VERIFIED ANSWERS) |
GRADED A+ | NEW UPDATE 2026
Opportunity cost is
Select one:
a. the highest-valued alternative that we give up to get something.
b. your value of leisure.
c. the marginal benefit from an activity.
d. the value of your favourite activity.
e. the money you spend on food, shelter, and clothing. - ANSWERS a. the
highest-valued alternative that we give up to get something.
All of the following topics, except one, are valid macroeconomic topics. Which one
is the exception?
Select one:
a. the effect of the government budget deficit on inflation
b. the reasons the labour force in a country decreases
c. the reasons the average price level in a country falls
d. the cause of increasing unemployment
e. the reasons the price of coffee fluctuates - ANSWERS e. the reasons the
price of coffee fluctuates
Economics is best defined as the study of
,Select one:
a. how society manages its scarce resources.
b. how to run a business most profitably.
c. how to predict inflation, unemployment, and stock prices.
d. how the government can stop the harm from unchecked self-interest.
e. how to produce products. - ANSWERS a. how society manages its scarce
resources.
What is an economic model?
Select one:
a. a fully detailed, realistic description of the economy
b. a mechanical machine that replicates the functioning of the economy
c. a simplified representation of some aspects of the economy
d. a computer program that predicts the future of the economy
e. all of the above - ANSWERS c. a simplified representation of some aspects
of the economy
The two big economic questions
Select one:
a. involve self-interest only.
b. involve both self-interest and social interest.
c. do not arise from scarcity.
d. involve only social interest.
e. involve neither self-interest nor social interest. - ANSWERS b. involve both
self-interest and social interest.
,To earn income, people sell the services of the factors of production they own.
Land earns ________ ; labour earns ________; and capital earns ________.
Select one:
a. interest or profit / wages / wages
b. wages / interest or profit / rent
c. interest or profit / wages / rent
d. interest or profit / rent / wages
e. rent / wages / interest or profit - ANSWERS e. rent / wages / interest or
profit
Factors of production is a term that can be used interchangeably with
Select one:
a. models.
b. consumer goods.
c. either resources or inputs.
d. opportunity cost.
e. technologies. - ANSWERS c. either resources or inputs.
All of the following statements, except one, are valid examples of the way
economists use the term scarcity. Which one is the exception?
Select one:
a. Households face a scarcity of income.
b. Individuals face a scarcity of time.
c. Economies face a scarcity of resources.
, d. The world faces a scarcity of ideas.
e. Firms face a scarcity of qualified workers. - ANSWERS d. The world faces a
scarcity of ideas.
"The rich should face higher income tax rates than the poor." This is an example of
Select one:
a. a negative statement.
b. a normative statement.
c. neither a normative nor a positive statement.
d. a positive statement.
e. economic reasoning. - ANSWERS b. a normative statement.
The fact that human wants cannot be fully satisfied with available resources is
called the problem of
Select one:
a. normative economics.
b. marginal cost.
c. the big tradeoff.
d. scarcity.
e. opportunity cost. - ANSWERS d. scarcity.
Refer to the figure below.
At price P2,
Select one:
