ECON 2030 FINAL EXAM
STUDY GUIDE. GRADED A+.
QUESTIONS AND 100%
VERIFIED ANSWERS. LATEST
2025/2026 UPDATE
In the simplest circular-flow model, households supply
A. capital; barter
B. wages and income; capital markets
C. factors of production; goods and services
D. firms; markets - Ans✔✔-C
Which statement is correct?
A. Resource scarcity is not a major concern in the rich countries of the world.
B. Most opportunity costs are zero.
C. An economic situation is in equilibrium when no individual would be better
off taking a different action.
D. Some very talented, skilled individuals who can do everything better than
most people should not specialize in doing any one thing. - Ans✔✔-C
,For an economist, the cost of something is:
A. the amount of money you paid for it.
B. what you gave up to get it.
C. always equal to its market value.
D. the quantity of resources used to produce it. - Ans✔✔-B
(Figure: Bicycles and Radishes I) Use Figure: Bicycles and Radishes I. The figure
shows the production possibility frontiers for two countries that produce only
radishes and bicycles. The axes of the two graphs are measured in equivalent
units. Country A is operating at point M, and country B is operating at point N.
The opportunity cost of producing an additional ton of radishes would be
greater in:
A. country A.
B. country B.
C. neither; the opportunity cost would be the same in both countries. D. There
is not enough information to answer the question. - Ans✔✔-B
When building a model, economists:
A. simplify reality to highlight what really matters.
B. attempt to duplicate reality in all of its complexity.
C. ignore the facts and instead try to determine what the facts should be. D. are
careful to avoid the scientific method. - Ans✔✔-A
Economists disagree more over normative economics than positive economics.
A. True
B. False - Ans✔✔-A
,In the circular-flow diagram, the product market is where:
A. firms buy goods and services.
B. firms buy resources used to produce goods and services.
C. households buy goods and services.
D. households buy resources used to produce goods and services. - Ans✔✔-C
The production possibility frontier will shift outward because of:
A. a decrease in the labor force.
B. an increase in infrastructure spending.
C. better technology that improves worker productivity.
D. a decrease in the unemployment rate. - Ans✔✔-C
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 has a comparative advantage in ____
A. Laurence; programs
B. Laurence; both programs and sunglasses
C. Carrie Anne; programs
D. Carrie Anne; both programs and sunglasses - Ans✔✔-A
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. What is Mark's opportunity cost
to produce one brownie?
A. 1 cookie
B. 1 brownie
, C. 0.5 cookie
D. 0.5 brownie - Ans✔✔-C
The process observed when an economy's production possibility frontier shifts
outward is:
A. comparative advantage.
B. economic growth.
C. full employment.
D. specialization. - Ans✔✔-B
An ambiguous change in price and a decrease in quantity are most likely
caused by:
A. no shift in supply and a shift to the left in demand.
B. a shift to the left in supply and a shift to the left in demand.
C. a shift to the right in supply and a shift to the left in demand.
D. a shift to the left in supply and a shift to the right in demand. - Ans✔✔-B
In terms of the production possibility frontier, the inefficient use of available
resources is shown by:
A. an increase in the labor force growth rate.
B. a movement from one point to another along the production possibility
frontier.
C. an inward shift of the production possibility frontier due to the lack of
opportunity.
D. production at a point inside the production possibility frontier. - Ans✔✔-D
STUDY GUIDE. GRADED A+.
QUESTIONS AND 100%
VERIFIED ANSWERS. LATEST
2025/2026 UPDATE
In the simplest circular-flow model, households supply
A. capital; barter
B. wages and income; capital markets
C. factors of production; goods and services
D. firms; markets - Ans✔✔-C
Which statement is correct?
A. Resource scarcity is not a major concern in the rich countries of the world.
B. Most opportunity costs are zero.
C. An economic situation is in equilibrium when no individual would be better
off taking a different action.
D. Some very talented, skilled individuals who can do everything better than
most people should not specialize in doing any one thing. - Ans✔✔-C
,For an economist, the cost of something is:
A. the amount of money you paid for it.
B. what you gave up to get it.
C. always equal to its market value.
D. the quantity of resources used to produce it. - Ans✔✔-B
(Figure: Bicycles and Radishes I) Use Figure: Bicycles and Radishes I. The figure
shows the production possibility frontiers for two countries that produce only
radishes and bicycles. The axes of the two graphs are measured in equivalent
units. Country A is operating at point M, and country B is operating at point N.
The opportunity cost of producing an additional ton of radishes would be
greater in:
A. country A.
B. country B.
C. neither; the opportunity cost would be the same in both countries. D. There
is not enough information to answer the question. - Ans✔✔-B
When building a model, economists:
A. simplify reality to highlight what really matters.
B. attempt to duplicate reality in all of its complexity.
C. ignore the facts and instead try to determine what the facts should be. D. are
careful to avoid the scientific method. - Ans✔✔-A
Economists disagree more over normative economics than positive economics.
A. True
B. False - Ans✔✔-A
,In the circular-flow diagram, the product market is where:
A. firms buy goods and services.
B. firms buy resources used to produce goods and services.
C. households buy goods and services.
D. households buy resources used to produce goods and services. - Ans✔✔-C
The production possibility frontier will shift outward because of:
A. a decrease in the labor force.
B. an increase in infrastructure spending.
C. better technology that improves worker productivity.
D. a decrease in the unemployment rate. - Ans✔✔-C
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 has a comparative advantage in ____
A. Laurence; programs
B. Laurence; both programs and sunglasses
C. Carrie Anne; programs
D. Carrie Anne; both programs and sunglasses - Ans✔✔-A
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. What is Mark's opportunity cost
to produce one brownie?
A. 1 cookie
B. 1 brownie
, C. 0.5 cookie
D. 0.5 brownie - Ans✔✔-C
The process observed when an economy's production possibility frontier shifts
outward is:
A. comparative advantage.
B. economic growth.
C. full employment.
D. specialization. - Ans✔✔-B
An ambiguous change in price and a decrease in quantity are most likely
caused by:
A. no shift in supply and a shift to the left in demand.
B. a shift to the left in supply and a shift to the left in demand.
C. a shift to the right in supply and a shift to the left in demand.
D. a shift to the left in supply and a shift to the right in demand. - Ans✔✔-B
In terms of the production possibility frontier, the inefficient use of available
resources is shown by:
A. an increase in the labor force growth rate.
B. a movement from one point to another along the production possibility
frontier.
C. an inward shift of the production possibility frontier due to the lack of
opportunity.
D. production at a point inside the production possibility frontier. - Ans✔✔-D
