ECON 2120 CLEMSON EXAM 1 QUIZZES
WITH ANSWERS UPDATED .
Scarcity exists because - Correct Answer -human wants exceed the resources available to
satisfy them.
Because human wants are insatiable and unlimited while available resources are limited,
people are said to face the problem of - Correct Answer -scarcity.
The study of economics is best described as a study of - Correct Answer -coping with
scarcity, and choices made as a result of scarcity in a society.
Which of the following BEST describes macroeconomics? - Correct Answer -it analyzes the
aggregate effects on the national economy of the choices made by individuals, firms, and
governments.
Self interest - Correct Answer -eflects choices that are best for the individual who makes
them.
To economists, scarcity means that - Correct Answer -unlimited wants cannot be satisfied by
the limited resources.
When a landscaping company decides to use drafting software and computers instead of
hiring designers to draw design plans by hand, it is answering the ________ question. -
Correct Answer -how
What is NOT true about rational choice? - Correct Answer -It is the same for all individuals.
In economics, cost is measured as ________, and benefit is measured as ________. - Correct
Answer -what you must give up to get something; what you are willing to give up to get it
1
, If Jessie studies economics for two hours instead of going to the movies with her friends, then
- Correct Answer -the opportunity cost of studying is the missed movie.
The cost of a one-unit increase in an activity is called the - Correct Answer -marginal cost.
A professor changes the penalty for cheating on exams from getting a 0 on the exam to
getting an F in the course. The professor has - Correct Answer -increased the marginal cost of
cheating.
Decision making on the margin involves - Correct Answer -comparing the marginal cost and
marginal benefits when making a decision.
An incentive is - Correct Answer -an inducement to take a particular action.
If the marginal benefit of getting a college degree rises, rational people will - Correct Answer
-attend college in greater numbers.
If the marginal benefit of the next slice of pizza exceeds the marginal cost, you will - Correct
Answer -eat the slice of pizza.
In the production possibilities model, the vertical axis measures ________ and the horizontal
axis measures ________. - Correct Answer -the quantity of a good or service; the quantity of
another good or service
The production possibilities frontier illustrates the - Correct Answer -maximum combinations
of goods and services that can be produced.
The production possibilities frontier is the boundary between the - Correct Answer -attainable
and unattainable combinations of goods and services.
Consider a production possibility frontier with jeans on the vertical axis and shoes on the
horizontal axis. As the country moves along the frontier closer to the horizontal axis, -
Correct Answer -more shoes are produced.
2
WITH ANSWERS UPDATED .
Scarcity exists because - Correct Answer -human wants exceed the resources available to
satisfy them.
Because human wants are insatiable and unlimited while available resources are limited,
people are said to face the problem of - Correct Answer -scarcity.
The study of economics is best described as a study of - Correct Answer -coping with
scarcity, and choices made as a result of scarcity in a society.
Which of the following BEST describes macroeconomics? - Correct Answer -it analyzes the
aggregate effects on the national economy of the choices made by individuals, firms, and
governments.
Self interest - Correct Answer -eflects choices that are best for the individual who makes
them.
To economists, scarcity means that - Correct Answer -unlimited wants cannot be satisfied by
the limited resources.
When a landscaping company decides to use drafting software and computers instead of
hiring designers to draw design plans by hand, it is answering the ________ question. -
Correct Answer -how
What is NOT true about rational choice? - Correct Answer -It is the same for all individuals.
In economics, cost is measured as ________, and benefit is measured as ________. - Correct
Answer -what you must give up to get something; what you are willing to give up to get it
1
, If Jessie studies economics for two hours instead of going to the movies with her friends, then
- Correct Answer -the opportunity cost of studying is the missed movie.
The cost of a one-unit increase in an activity is called the - Correct Answer -marginal cost.
A professor changes the penalty for cheating on exams from getting a 0 on the exam to
getting an F in the course. The professor has - Correct Answer -increased the marginal cost of
cheating.
Decision making on the margin involves - Correct Answer -comparing the marginal cost and
marginal benefits when making a decision.
An incentive is - Correct Answer -an inducement to take a particular action.
If the marginal benefit of getting a college degree rises, rational people will - Correct Answer
-attend college in greater numbers.
If the marginal benefit of the next slice of pizza exceeds the marginal cost, you will - Correct
Answer -eat the slice of pizza.
In the production possibilities model, the vertical axis measures ________ and the horizontal
axis measures ________. - Correct Answer -the quantity of a good or service; the quantity of
another good or service
The production possibilities frontier illustrates the - Correct Answer -maximum combinations
of goods and services that can be produced.
The production possibilities frontier is the boundary between the - Correct Answer -attainable
and unattainable combinations of goods and services.
Consider a production possibility frontier with jeans on the vertical axis and shoes on the
horizontal axis. As the country moves along the frontier closer to the horizontal axis, -
Correct Answer -more shoes are produced.
2
