Econ 110 Exam LATEST QUESTIONS
-exam elaborations with 100% verified answer/solutions-
Excel & Succeed - academic year (2026-2027)
76 Q&A
Individuals are required to make choices because of
scarcity
Which of the following best defines scarcity?
Wanting more than we can obtain with limited resources.
Susan has a chance to take two weeks of unpaid leave from her job to
go on a trip to Antarctica that will cost $5,000. She earns $2,000 per
week. She estimates that the trip will be worth twice what she has to pay
for the pleasure it will give her. Susan should:
take the trip because the cost of the trip is less than her benefit
Your friend offers to buy you a cup of coffee, a cup of tea, or a soda. You
don't like coffee, and after some thought, you choose the tea. The
opportunity cost of the tea is:
the soda
If the owner of a pizza restaurant is tempted to try charging more for her
pizzas, she can expect fewer diners will decide to order them. This
illustrates the importance of how
, changes in trade-offs influence decision making
An incentive:
modifies behavior by changing trade-offs
When the economy is working efficiently:
resources are allocated efficiently
Suppose that the current allocation of resources is such that the
economy is not producing the goods and services that have the greatest
value to society. An economist would say that this economy is not:
efficient
A good that is valued by society may not be on the market for all of the
following reasons except:
-It would not be profitable to produce the product.
-There is a market failure that imposes additional costs or reduces
benefits of production.
-The government has intervened to prevent beneficial transactions from
taking place.
-Markets are too competitive, and thus regulation is necessary
Markets are too competitive, and thus regulation is necessary
For a long time, when a team from the American Football Conference
won the Super Bowl, the stock market had a bad year; when a team from
the National Football Conference won the Super Bowl, the stock market
had a great year. This is an illustration of:
correlation without causation
Consider the following two events:
Every morning you get up. (Event A)
Every morning the sun rises. (Event B)
-exam elaborations with 100% verified answer/solutions-
Excel & Succeed - academic year (2026-2027)
76 Q&A
Individuals are required to make choices because of
scarcity
Which of the following best defines scarcity?
Wanting more than we can obtain with limited resources.
Susan has a chance to take two weeks of unpaid leave from her job to
go on a trip to Antarctica that will cost $5,000. She earns $2,000 per
week. She estimates that the trip will be worth twice what she has to pay
for the pleasure it will give her. Susan should:
take the trip because the cost of the trip is less than her benefit
Your friend offers to buy you a cup of coffee, a cup of tea, or a soda. You
don't like coffee, and after some thought, you choose the tea. The
opportunity cost of the tea is:
the soda
If the owner of a pizza restaurant is tempted to try charging more for her
pizzas, she can expect fewer diners will decide to order them. This
illustrates the importance of how
, changes in trade-offs influence decision making
An incentive:
modifies behavior by changing trade-offs
When the economy is working efficiently:
resources are allocated efficiently
Suppose that the current allocation of resources is such that the
economy is not producing the goods and services that have the greatest
value to society. An economist would say that this economy is not:
efficient
A good that is valued by society may not be on the market for all of the
following reasons except:
-It would not be profitable to produce the product.
-There is a market failure that imposes additional costs or reduces
benefits of production.
-The government has intervened to prevent beneficial transactions from
taking place.
-Markets are too competitive, and thus regulation is necessary
Markets are too competitive, and thus regulation is necessary
For a long time, when a team from the American Football Conference
won the Super Bowl, the stock market had a bad year; when a team from
the National Football Conference won the Super Bowl, the stock market
had a great year. This is an illustration of:
correlation without causation
Consider the following two events:
Every morning you get up. (Event A)
Every morning the sun rises. (Event B)
