ECON 2100 EXAM QUESTIONS AND ANSWERS
If the state government allocates additional spending on education, the opportunity cost
is: - Answer -measured in terms of the best alternative uses for that money.
The Taco Hut charges the same price for everything on its menu: $3 will buy a taco, a
burrito, or nachos. You buy the taco and think that if you had not purchased the taco,
you would have purchased the burrito. The opportunity cost of the taco is: - Answer -
your enjoyment of the burrito.
The cost of leaving a championship soccer match before it ends is _____, while the cost
of staying for the entire match is _____. - Answer -the opportunity cost of not seeing
the winning goal with two minutes to go; the opportunity cost of whatever else you could
have done during that time
Thinking in economic terms, when Mary Sweet-Tooth is deciding whether to eat another
brownie, she: - Answer -compares the additional benefits with the additional costs of
eating another brownie.
You are planning to study eight hours this week for your economics final and are
considering studying a ninth hour. You should: - Answer -make your decision based on
the cost of the next best alternative use of your time compared to the benefit of one
more hour of study.
A dozen friends got together to celebrate a birthday. If the birthday cake is cut into 12
pieces of the same size and each of the 12 partygoers gets a slice, this cake distribution
is: - Answer -equitable.
An economic model: - Answer -is a simplified version of reality used to understand real-
world economic conditions.
The production possibility frontier illustrates that: - Answer -if all resources of an
economy are being used efficiently, more of one good can be produced only if less of
another good is produced.
The economy's factors of production are not equally suitable for producing different
types of goods. This principle generates: - Answer -the law of increasing opportunity
cost.
A production possibility frontier illustrates the _____ facing an economy that _____ only
two goods. - Answer -trade-offs; produces
The effect of a natural disaster can be shown by _____ the production possibility
frontier. - Answer -an inward shift of
, If they spend all night writing computer programs, Laurence can write 10 programs, and
Carrie Anne can write 5. If they spend all night making sunglasses, Laurence can make
6 pairs, and Carrie Anne can make 4. We know that: - Answer -Laurence's opportunity
cost of writing programs is less than Carrie Anne's.
In one day, Kessy can bake 10 cookies or mix 15 glasses of lemonade. His friend Ava
can make 10 cookies or 10 glasses of lemonade. His other friend, Ian, can make 10
cookies or 20 glasses of lemonade. Who has the lowest opportunity cost in cookie
production? - Answer -Ava
Which of the following demonstrates how people respond to incentives to make
themselves better off? - Answer -More students major in economics when they hear
that salaries for economists are rising.
Because people usually exploit opportunities to make themselves better off, which of
the following methods of reducing pollution is likely to be most effective? - Answer -
imposing a tax per unit of pollution generated
Which of the following is NOT one of the four principles for understanding individual
choice? - Answer -Overall spending sometimes gets out of line with the economy's
productive capacity.
Which of the following principles underlies the economics of individual choices? -
Answer -People usually exploit opportunities to make themselves better off.
Mark and Julie are going to sell brownies and cookies for their third annual fundraiser
bake sale. In one day, Mark can make 40 brownies or 20 cookies, and Julie can make
15 brownies or 15 cookies. Based on this information, _____ has the comparative
advantage in making brownies and _____ has the comparative advantage in making
cookies. - Answer -Mark; Julie
A decrease in the price of eggs will result in an increase in the: - Answer -quantity of
eggs demanded.
Which of the following best exemplifies the law of demand? - Answer -As the price of a
car rental rises, fewer cars are rented.
Raclette is a popular wintertime dish in Switzerland. It is essentially melted Raclette
cheese over boiled new potatoes. If the price of Raclette cheese decreased, we would
expect to see: - Answer -an increase in demand for new potatoes.
The demand curve for videos has shifted to the right. What could have caused it? -
Answer -an increase in the incomes of buyers
Which of the following would shift the demand curve for new textbooks to the right? -
Answer -an increase in college enrollment
If the state government allocates additional spending on education, the opportunity cost
is: - Answer -measured in terms of the best alternative uses for that money.
The Taco Hut charges the same price for everything on its menu: $3 will buy a taco, a
burrito, or nachos. You buy the taco and think that if you had not purchased the taco,
you would have purchased the burrito. The opportunity cost of the taco is: - Answer -
your enjoyment of the burrito.
The cost of leaving a championship soccer match before it ends is _____, while the cost
of staying for the entire match is _____. - Answer -the opportunity cost of not seeing
the winning goal with two minutes to go; the opportunity cost of whatever else you could
have done during that time
Thinking in economic terms, when Mary Sweet-Tooth is deciding whether to eat another
brownie, she: - Answer -compares the additional benefits with the additional costs of
eating another brownie.
You are planning to study eight hours this week for your economics final and are
considering studying a ninth hour. You should: - Answer -make your decision based on
the cost of the next best alternative use of your time compared to the benefit of one
more hour of study.
A dozen friends got together to celebrate a birthday. If the birthday cake is cut into 12
pieces of the same size and each of the 12 partygoers gets a slice, this cake distribution
is: - Answer -equitable.
An economic model: - Answer -is a simplified version of reality used to understand real-
world economic conditions.
The production possibility frontier illustrates that: - Answer -if all resources of an
economy are being used efficiently, more of one good can be produced only if less of
another good is produced.
The economy's factors of production are not equally suitable for producing different
types of goods. This principle generates: - Answer -the law of increasing opportunity
cost.
A production possibility frontier illustrates the _____ facing an economy that _____ only
two goods. - Answer -trade-offs; produces
The effect of a natural disaster can be shown by _____ the production possibility
frontier. - Answer -an inward shift of
, If they spend all night writing computer programs, Laurence can write 10 programs, and
Carrie Anne can write 5. If they spend all night making sunglasses, Laurence can make
6 pairs, and Carrie Anne can make 4. We know that: - Answer -Laurence's opportunity
cost of writing programs is less than Carrie Anne's.
In one day, Kessy can bake 10 cookies or mix 15 glasses of lemonade. His friend Ava
can make 10 cookies or 10 glasses of lemonade. His other friend, Ian, can make 10
cookies or 20 glasses of lemonade. Who has the lowest opportunity cost in cookie
production? - Answer -Ava
Which of the following demonstrates how people respond to incentives to make
themselves better off? - Answer -More students major in economics when they hear
that salaries for economists are rising.
Because people usually exploit opportunities to make themselves better off, which of
the following methods of reducing pollution is likely to be most effective? - Answer -
imposing a tax per unit of pollution generated
Which of the following is NOT one of the four principles for understanding individual
choice? - Answer -Overall spending sometimes gets out of line with the economy's
productive capacity.
Which of the following principles underlies the economics of individual choices? -
Answer -People usually exploit opportunities to make themselves better off.
Mark and Julie are going to sell brownies and cookies for their third annual fundraiser
bake sale. In one day, Mark can make 40 brownies or 20 cookies, and Julie can make
15 brownies or 15 cookies. Based on this information, _____ has the comparative
advantage in making brownies and _____ has the comparative advantage in making
cookies. - Answer -Mark; Julie
A decrease in the price of eggs will result in an increase in the: - Answer -quantity of
eggs demanded.
Which of the following best exemplifies the law of demand? - Answer -As the price of a
car rental rises, fewer cars are rented.
Raclette is a popular wintertime dish in Switzerland. It is essentially melted Raclette
cheese over boiled new potatoes. If the price of Raclette cheese decreased, we would
expect to see: - Answer -an increase in demand for new potatoes.
The demand curve for videos has shifted to the right. What could have caused it? -
Answer -an increase in the incomes of buyers
Which of the following would shift the demand curve for new textbooks to the right? -
Answer -an increase in college enrollment
