WKU ECON 202 FINAL EXAM 2026/2027 – D. WILSON ECONOMICS
STUDY GUIDE, PRACTICE QUESTIONS & TEST PREP
The _____ opportunity cost of doing something, the _____ likely it will be done - correct answer ✔✔C.
Higher, more
The principle that the cost of something is equal to what is sacrificed to get it is known as the - correct
answer ✔✔B. Principle of opportunity cost
Increasing opportunity cost while moving along a production possibility frontier is due to - correct
answer ✔✔C. the fact that resources are not equally productive in alternative uses
To think at the margin means to consider - correct answer ✔✔How a small change in one variable affects
another variable
The "coincidence of wants" problem associated with barter refers to the fact that - correct answer ✔✔D.
for exchange to occur each transactor must have a product which the other transactor wants
Customarily, economists classify resources into these major groups: - correct answer ✔✔D. land, labor,
capital, and entreprenerurship
When economists assume that people are rational and respond to incentives, they mean - correct
answer ✔✔C. people act in their own self- interest
The above graph depicts the mythical country of sandwichia's production possibility frontier. Sandwichia
would gave to experience significant technologial progress or massive saving and investment before it
could feasibly choose to produce at: - correct answer ✔✔E. point e.
From above graph, the opportunity cost of producing an extra jar of jelly in sandwichia is highest at: -
correct answer ✔✔B. point b.
Which of the following might be considered to be a characteristic of a planned economy? - correct
answer ✔✔D. price is relatively unimportant as a means of allocating resources
the opportunity cost of going to college - correct answer ✔✔C. includes wages you lose by going to
college instead of working
does voluntary exchange create wealth (value)? - correct answer ✔✔D. yes, trade generally permits the
trading partners to gain more of what they value; this is why they agree to the terms of the exchange
Which of the following will most likely occur under a system of clearly defined and enforced private
property rights - correct answer ✔✔b. resource owners will gain by discovering and employing their
resources in ways that are highly valued by others
economic capital refers to: - correct answer ✔✔D. buildings, machinery, and equipment
, the 3 key economic questions include all of the following except - correct answer ✔✔C "where should
these products be produced?"
The additional cost resulting from a small increase in some activity is called the - correct answer ✔✔C.
marginal cost
Because resources are limited - correct answer ✔✔D. people must make choices
If an economy is operating at a point inside the production possibilities curve, - correct answer ✔✔A. its
resources are being wasted
In a market economy, what provides potential investors with reliable information about the financial
perforance of a firm? - correct answer ✔✔D. accounting rules
The law of supply indicates that - correct answer ✔✔C. producers will offer more of a product at high
prices than they will at low prices
A response to a price change would be described as a: - correct answer ✔✔d. movement along an
existing demand curve
If two countries are producing the same two products it is mutually beneficial if the countries specialize
then trade. how is it determined who specializes in the production of which product - correct answer
✔✔A. by the lowest opportunity cost of production, comparative advantage
the money payment made to owners of land, labor, capital, and entrepreneurial ability are - correct
answer ✔✔b. rent, wage , interest, and profits respectively.
which of the follow was not in the top 10 countries in terms of economic freedom according to the
heritage foundation (as shown and discussed in class - correct answer ✔✔D. United States
Specialzation and trade exploit differences in productivity of workers and - correct answer ✔✔C. make
everyone better off
when a market is in equilibrium, - correct answer ✔✔b. the supply curve has the same slope as the
demand curve
if the actual price of t-shirts is $7, there is - correct answer ✔✔B. shortage of 8 t-shirts
if the actual price of t-shirts is $10, we would expect that - correct answer ✔✔B. price will increase until
quantity demanded equals quantity supplied
The law of demand can be explained as - correct answer ✔✔D. the higher the price, the smaller the
quantity demanded, ceteris paribus
When producers are willing to sell more than consumers are willing to buy - correct answer ✔✔B. there
is a surplus of the product in the market
STUDY GUIDE, PRACTICE QUESTIONS & TEST PREP
The _____ opportunity cost of doing something, the _____ likely it will be done - correct answer ✔✔C.
Higher, more
The principle that the cost of something is equal to what is sacrificed to get it is known as the - correct
answer ✔✔B. Principle of opportunity cost
Increasing opportunity cost while moving along a production possibility frontier is due to - correct
answer ✔✔C. the fact that resources are not equally productive in alternative uses
To think at the margin means to consider - correct answer ✔✔How a small change in one variable affects
another variable
The "coincidence of wants" problem associated with barter refers to the fact that - correct answer ✔✔D.
for exchange to occur each transactor must have a product which the other transactor wants
Customarily, economists classify resources into these major groups: - correct answer ✔✔D. land, labor,
capital, and entreprenerurship
When economists assume that people are rational and respond to incentives, they mean - correct
answer ✔✔C. people act in their own self- interest
The above graph depicts the mythical country of sandwichia's production possibility frontier. Sandwichia
would gave to experience significant technologial progress or massive saving and investment before it
could feasibly choose to produce at: - correct answer ✔✔E. point e.
From above graph, the opportunity cost of producing an extra jar of jelly in sandwichia is highest at: -
correct answer ✔✔B. point b.
Which of the following might be considered to be a characteristic of a planned economy? - correct
answer ✔✔D. price is relatively unimportant as a means of allocating resources
the opportunity cost of going to college - correct answer ✔✔C. includes wages you lose by going to
college instead of working
does voluntary exchange create wealth (value)? - correct answer ✔✔D. yes, trade generally permits the
trading partners to gain more of what they value; this is why they agree to the terms of the exchange
Which of the following will most likely occur under a system of clearly defined and enforced private
property rights - correct answer ✔✔b. resource owners will gain by discovering and employing their
resources in ways that are highly valued by others
economic capital refers to: - correct answer ✔✔D. buildings, machinery, and equipment
, the 3 key economic questions include all of the following except - correct answer ✔✔C "where should
these products be produced?"
The additional cost resulting from a small increase in some activity is called the - correct answer ✔✔C.
marginal cost
Because resources are limited - correct answer ✔✔D. people must make choices
If an economy is operating at a point inside the production possibilities curve, - correct answer ✔✔A. its
resources are being wasted
In a market economy, what provides potential investors with reliable information about the financial
perforance of a firm? - correct answer ✔✔D. accounting rules
The law of supply indicates that - correct answer ✔✔C. producers will offer more of a product at high
prices than they will at low prices
A response to a price change would be described as a: - correct answer ✔✔d. movement along an
existing demand curve
If two countries are producing the same two products it is mutually beneficial if the countries specialize
then trade. how is it determined who specializes in the production of which product - correct answer
✔✔A. by the lowest opportunity cost of production, comparative advantage
the money payment made to owners of land, labor, capital, and entrepreneurial ability are - correct
answer ✔✔b. rent, wage , interest, and profits respectively.
which of the follow was not in the top 10 countries in terms of economic freedom according to the
heritage foundation (as shown and discussed in class - correct answer ✔✔D. United States
Specialzation and trade exploit differences in productivity of workers and - correct answer ✔✔C. make
everyone better off
when a market is in equilibrium, - correct answer ✔✔b. the supply curve has the same slope as the
demand curve
if the actual price of t-shirts is $7, there is - correct answer ✔✔B. shortage of 8 t-shirts
if the actual price of t-shirts is $10, we would expect that - correct answer ✔✔B. price will increase until
quantity demanded equals quantity supplied
The law of demand can be explained as - correct answer ✔✔D. the higher the price, the smaller the
quantity demanded, ceteris paribus
When producers are willing to sell more than consumers are willing to buy - correct answer ✔✔B. there
is a surplus of the product in the market
