1|Page
QUEEN’S ECON 110 FINAL EXAM -
SPRING NEWEST EXAM
PREPARATION WITH COMPLETE
QUESTIONS AND CORRECT
ANSWERS WITH RATIONALES |
ALREADY GRADED A+||BRAND
NEW VERSION!!
Fundamentally, economics deals with
----Solution----
scarcity
which of the following statements best represents the principle
represented by the adage, there ain't no such thing as a free lunch?
----Solution----
Benjamin must decide between going to Florida or Brazil for summer
vacation
The property of society getting the most it can from its scarce resources
is called
----Solution----
efficiency
When computing the opportunity cost of attending a pro football game
as a spectator, you should include
----Solution----
,2|Page
the price you pay for the ticket and the value of your time
Making rational decisions "at the margin" means that people
----Solution----
compare the marginal costs and marginal benefits of each decision
If China decides to trade with France, we know that
----Solution----
France and China can both benefit
Which of the following observations was made famous by Adam Smith
in his book The Wealth of Nations?
----Solution----
Households and firms interacting in markets are guided by an "invisible
hand" that leads them to desirable market outcomes
The ability of an individual to own an exercise control over scarce
resources is called
----Solution----
property rights
the primary determinant of a country's standard of living is
----Solution----
the country's ability to produce goods and services
In the short run, an increase in the money supply is likely to lead to
----Solution----
lower unemployment and higher inflation
,3|Page
Which of the following steps does an economist not take when studying
the economy?
----Solution----
conduct a laboratory experiment in order to generate data
economists make assumptions to
----Solution----
simplify the complex world, make it easier to understand
in the circular-flow diagram, which of the following is not a factor of
production
----Solution----
output
another term for goods and services is
----Solution----
output
where can an economy not produce
----Solution----
outside its production possibilities frontier
the production possibilities frontier provides an illustration of the
principle that
----Solution----
people face trade-offs
, 4|Page
which of the following would likely be studied by a macroeconomist
rather than a microeconomist ----Solution----the effect on the economy
of changes in the nation's unemployment rate
which of the following statements is correct about the roles of
economists ----Solution----in trying to improve the world, economists
are policy advisers
the president of the united states receives tax policy advice from
economists in the ----Solution----department of treasury
economists sometimes give conflicting advice because ----Solution----
economists have different values and scientific judgments
in the actual economy, households ----Solution----spend all of their
income
The income that households and noncorporate businesses receive is
called ----Solution----personal income
unemployment compensation is ----Solution----not part of GDP because
it is a transfer payment.
the carter's oldest son attends Big State University. He and his parents
pay all of his fees and tuition. These payments count in GDP as ----
Solution----consumption of services
QUEEN’S ECON 110 FINAL EXAM -
SPRING NEWEST EXAM
PREPARATION WITH COMPLETE
QUESTIONS AND CORRECT
ANSWERS WITH RATIONALES |
ALREADY GRADED A+||BRAND
NEW VERSION!!
Fundamentally, economics deals with
----Solution----
scarcity
which of the following statements best represents the principle
represented by the adage, there ain't no such thing as a free lunch?
----Solution----
Benjamin must decide between going to Florida or Brazil for summer
vacation
The property of society getting the most it can from its scarce resources
is called
----Solution----
efficiency
When computing the opportunity cost of attending a pro football game
as a spectator, you should include
----Solution----
,2|Page
the price you pay for the ticket and the value of your time
Making rational decisions "at the margin" means that people
----Solution----
compare the marginal costs and marginal benefits of each decision
If China decides to trade with France, we know that
----Solution----
France and China can both benefit
Which of the following observations was made famous by Adam Smith
in his book The Wealth of Nations?
----Solution----
Households and firms interacting in markets are guided by an "invisible
hand" that leads them to desirable market outcomes
The ability of an individual to own an exercise control over scarce
resources is called
----Solution----
property rights
the primary determinant of a country's standard of living is
----Solution----
the country's ability to produce goods and services
In the short run, an increase in the money supply is likely to lead to
----Solution----
lower unemployment and higher inflation
,3|Page
Which of the following steps does an economist not take when studying
the economy?
----Solution----
conduct a laboratory experiment in order to generate data
economists make assumptions to
----Solution----
simplify the complex world, make it easier to understand
in the circular-flow diagram, which of the following is not a factor of
production
----Solution----
output
another term for goods and services is
----Solution----
output
where can an economy not produce
----Solution----
outside its production possibilities frontier
the production possibilities frontier provides an illustration of the
principle that
----Solution----
people face trade-offs
, 4|Page
which of the following would likely be studied by a macroeconomist
rather than a microeconomist ----Solution----the effect on the economy
of changes in the nation's unemployment rate
which of the following statements is correct about the roles of
economists ----Solution----in trying to improve the world, economists
are policy advisers
the president of the united states receives tax policy advice from
economists in the ----Solution----department of treasury
economists sometimes give conflicting advice because ----Solution----
economists have different values and scientific judgments
in the actual economy, households ----Solution----spend all of their
income
The income that households and noncorporate businesses receive is
called ----Solution----personal income
unemployment compensation is ----Solution----not part of GDP because
it is a transfer payment.
the carter's oldest son attends Big State University. He and his parents
pay all of his fees and tuition. These payments count in GDP as ----
Solution----consumption of services
