CLEMSON MICROECONOMICS 2110 EXAM 1
hh hh hh hh
QUESTIONS WITH CORRECT ANSWERS
hh hh hh hh
2025
what hhis hhmicroeconomics? hh- hhCORRECT hhANSWER hh-
study hhof hhindividual hhconsumers hhand hhtheir hhparticipation hhin hhmarkets hh(consumers hhcan hhbe hha
hhcountry hhor hha hhbusiness)
what hhis hhmeant hhby hh"people hhrespond hhto hhincentives"? hh- hhCORRECT hhANSWER hh-
an hhincentive hhis hha hhcomparison hhof hhbenefits hhand hhcosts, hhwhich hhare hhdefined hhbroadly hhin hhterms hhof
hhmoney, hhresources, hhand hhtime hh- hheconomists hhmake hhpredictions hhbased hhon hhincentives
what hhis hhthe hhfirst hh"bigEidea" hhof hhmicroeconomics hhand hhwhat hhdoes hhit hhmean? hh- hhCORRECT
hhANSWER hh- hhthe hhfirst hhbig hhidea hhis hhincentives hhmatter hh-
incentives hhare hhboth hhrewards hhand hhpunishments hhthat hhpeople hhrespond hhto hhin hhpredictable hhways
how hhwould hhan hheconomist hhlook hhat hhincreasing hhsafety hhregulations hhon hhthings hhlike hhcars hhor
hhplanes? hh- hhCORRECT hhANSWER hh-
common hhsense hhis hhmore hhsafety hh= hhgood, hhbut hheconomic hhsense hhsays hhthat hhthere hhwill hhbe hha
hhchange hhtoEthe hhincentives
-
for hhexample hhthe hhincrease hhin hhsafety hhregulations hhcould hhcause hhpeople hhto hhdrive hhmore hhrecklessly
hh(studie hhs hhshowed hhthisEwas hhtrue)
whatEis hhthe hhsecond hh"big hhidea" hhof hhmicroeconomics hhand hhwhat hhdoes hhit hhmean? hh- hhCORRECT
hhANSWER hh- hhgood hhinstitutions hhalign hhself-interest hhwith hhsocial hhinterest hh- hhself-
interestEis hhdoing hhwhat hhishhvaluable hhto hhoneself hh(not hhselfishness) hhand hhwhen hhmarkets hhwork hhwell,
hhthis hhse hhlf-interest hhalso hhhelps hhsociety
whatEishhscarcity? hh- hhCORRECT hhANSWER hh-
a hhgood hhis hhscarce hhwhen hhthere hhis hhnot hhenough hhto hhsupply hhdemand hh-
, does hhnot hhmean hhrare, hhrather hhmeans hhsomething hhmust hhbe hhgiven hhup hhto hhget hhit hhand hhthis hhis
hhwhat hhdrives hhc hhhoices hhand hhresource hhallocation
whatEishhresource hhallocation? hh- hhCORRECT hhANSWER hh-
microeconomics hhgives hha hhmodel hhof hhresource hhallocation hhthrough hhmarkets hh-
people hhoptimize hhand hhresources hhequilibrate hhby hhallocating hhto hhwhere hhthey hhare hhmost hhneeded
what hhis hhthe hhthird hh"big hhidea" hhof hhmicroeconomics? hh- hhCORRECT hhANSWER hh-trade-offs hhare
hheverywhere hh- hha hhtrade-
off hhis hhgiving hhup hhsomething hhto hhobtain hhsomething hhelse hhand hhin hhorder hhto hhget hhmore hhof hhone
hhgood, hhyou hhm hhust hhgive hhup hhsomething hhelse
what hhis hhopportunity hhcost? hh- hhCORRECT hhANSWER hh-
the hhtrue hhcost hhof hhsomething hhis hhwhat hhyou hhmust hhgive hhup hhto hhget hhit hh-
opportunity hhcost hhis hhthe hhvalue hhof hhthe hhnext hhbest hhalternative hhgiven hhup hhbecause hhevery hhchoice
hhusually hhi hhnvolves hhgivingEsomethingEup
what hhis hhthe hhfourth hh"big hhidea" hhin hhmicroeconomics? hh- hhCORRECT hhANSWER hh-thinking hhon hhthe
hhmargin hh- hhrational hhchoicesEare hhmade hhby hhconsidering hhtrade-
offs hhon hhthe hhmargin, hhor hhby hhconsidering hhthe hhmarginal hhcosts hhand hhbenefits hhof hha hhsituation
hh(marginal hh= hhs hhmall hhamount hhmore)
whatEis hhthe hhmarginal hhprinciple? hh- hhCORRECT hhANSWER hh-
if hhthe hhmarginal hhbenefits hhoutweigh hhthe hhmarginal hhcosts, hhthe hhchoice hhis hha hhsmart hhone
why hhshould hhwe hhcare hhabout hhopportunity hhcosts? hh- hhCORRECT hhANSWER hh-
hhconsider hha hh5, hh10, hhand hh20 hhdollar hhbill hh-
all hhtake hhthe hhsame hhresources hhand hhtime hhto hhproduce, hhbut hhare hhworth hhdifferent hhamounts hh-
the hhopportunity hhcost hhof hhripping hha hh5 hhin hhhalf hhis hhonly hh5 hhdollars hhworth, hhripping hha hh20 hhis hh20
hhdollars hhworth
hh hh hh hh
QUESTIONS WITH CORRECT ANSWERS
hh hh hh hh
2025
what hhis hhmicroeconomics? hh- hhCORRECT hhANSWER hh-
study hhof hhindividual hhconsumers hhand hhtheir hhparticipation hhin hhmarkets hh(consumers hhcan hhbe hha
hhcountry hhor hha hhbusiness)
what hhis hhmeant hhby hh"people hhrespond hhto hhincentives"? hh- hhCORRECT hhANSWER hh-
an hhincentive hhis hha hhcomparison hhof hhbenefits hhand hhcosts, hhwhich hhare hhdefined hhbroadly hhin hhterms hhof
hhmoney, hhresources, hhand hhtime hh- hheconomists hhmake hhpredictions hhbased hhon hhincentives
what hhis hhthe hhfirst hh"bigEidea" hhof hhmicroeconomics hhand hhwhat hhdoes hhit hhmean? hh- hhCORRECT
hhANSWER hh- hhthe hhfirst hhbig hhidea hhis hhincentives hhmatter hh-
incentives hhare hhboth hhrewards hhand hhpunishments hhthat hhpeople hhrespond hhto hhin hhpredictable hhways
how hhwould hhan hheconomist hhlook hhat hhincreasing hhsafety hhregulations hhon hhthings hhlike hhcars hhor
hhplanes? hh- hhCORRECT hhANSWER hh-
common hhsense hhis hhmore hhsafety hh= hhgood, hhbut hheconomic hhsense hhsays hhthat hhthere hhwill hhbe hha
hhchange hhtoEthe hhincentives
-
for hhexample hhthe hhincrease hhin hhsafety hhregulations hhcould hhcause hhpeople hhto hhdrive hhmore hhrecklessly
hh(studie hhs hhshowed hhthisEwas hhtrue)
whatEis hhthe hhsecond hh"big hhidea" hhof hhmicroeconomics hhand hhwhat hhdoes hhit hhmean? hh- hhCORRECT
hhANSWER hh- hhgood hhinstitutions hhalign hhself-interest hhwith hhsocial hhinterest hh- hhself-
interestEis hhdoing hhwhat hhishhvaluable hhto hhoneself hh(not hhselfishness) hhand hhwhen hhmarkets hhwork hhwell,
hhthis hhse hhlf-interest hhalso hhhelps hhsociety
whatEishhscarcity? hh- hhCORRECT hhANSWER hh-
a hhgood hhis hhscarce hhwhen hhthere hhis hhnot hhenough hhto hhsupply hhdemand hh-
, does hhnot hhmean hhrare, hhrather hhmeans hhsomething hhmust hhbe hhgiven hhup hhto hhget hhit hhand hhthis hhis
hhwhat hhdrives hhc hhhoices hhand hhresource hhallocation
whatEishhresource hhallocation? hh- hhCORRECT hhANSWER hh-
microeconomics hhgives hha hhmodel hhof hhresource hhallocation hhthrough hhmarkets hh-
people hhoptimize hhand hhresources hhequilibrate hhby hhallocating hhto hhwhere hhthey hhare hhmost hhneeded
what hhis hhthe hhthird hh"big hhidea" hhof hhmicroeconomics? hh- hhCORRECT hhANSWER hh-trade-offs hhare
hheverywhere hh- hha hhtrade-
off hhis hhgiving hhup hhsomething hhto hhobtain hhsomething hhelse hhand hhin hhorder hhto hhget hhmore hhof hhone
hhgood, hhyou hhm hhust hhgive hhup hhsomething hhelse
what hhis hhopportunity hhcost? hh- hhCORRECT hhANSWER hh-
the hhtrue hhcost hhof hhsomething hhis hhwhat hhyou hhmust hhgive hhup hhto hhget hhit hh-
opportunity hhcost hhis hhthe hhvalue hhof hhthe hhnext hhbest hhalternative hhgiven hhup hhbecause hhevery hhchoice
hhusually hhi hhnvolves hhgivingEsomethingEup
what hhis hhthe hhfourth hh"big hhidea" hhin hhmicroeconomics? hh- hhCORRECT hhANSWER hh-thinking hhon hhthe
hhmargin hh- hhrational hhchoicesEare hhmade hhby hhconsidering hhtrade-
offs hhon hhthe hhmargin, hhor hhby hhconsidering hhthe hhmarginal hhcosts hhand hhbenefits hhof hha hhsituation
hh(marginal hh= hhs hhmall hhamount hhmore)
whatEis hhthe hhmarginal hhprinciple? hh- hhCORRECT hhANSWER hh-
if hhthe hhmarginal hhbenefits hhoutweigh hhthe hhmarginal hhcosts, hhthe hhchoice hhis hha hhsmart hhone
why hhshould hhwe hhcare hhabout hhopportunity hhcosts? hh- hhCORRECT hhANSWER hh-
hhconsider hha hh5, hh10, hhand hh20 hhdollar hhbill hh-
all hhtake hhthe hhsame hhresources hhand hhtime hhto hhproduce, hhbut hhare hhworth hhdifferent hhamounts hh-
the hhopportunity hhcost hhof hhripping hha hh5 hhin hhhalf hhis hhonly hh5 hhdollars hhworth, hhripping hha hh20 hhis hh20
hhdollars hhworth
