Econ 2110 Final Exam Clemson University
2026 Study Guide
1. Economics the study of how peo-
ple allocate their limited
resources to satisfy their
nearly unlimited wants
2. Micro the part of economics
concerned with single fac-
tors and the ettects of in-
dividual decisions
3. Macro the part of economics
concerned with large scale
or general economic fac-
tors, such as interest rates
and national productivity
4. Incentives rewards r punishments
that people react to
5. Scarcity living in a world of finite
resources and having un-
limited needs and wants
6. Trade-offs giving up one thing in or-
der to gain another
7. Opportunity Cost the value of the next
best decision, what it
costs someone to produce
something, loss of poten-
tial gain of other alterna-
tives
, Econ 2110 Final Exam Clemson University
2026 Study Guide
8. Thinking on Margin what a producer/seller
has to sacrifice in order to
sell/produce one more of
an item
9. Positive Economics hows the economy actual-
ly works, facts
10. Normative Economics an opinion of how the
economy should work, not
facts
11. Consumer Surplus willingness to pay minus
the cost/actual price of
item
12. Producer Surplus the cost/actual price of
item minus the production
cost
13. Voluntary Trade trade that is mutually ben-
eficial
14. Specialization leads to increased pro-
ductivity and the division
of knowledge
15. Self-Sufficiency leads to death
16. Division of Knowledge the sum of total knowl-
edge increases and in this
way so does productivity
17. Absolute Advantage
, Econ 2110 Final Exam Clemson University
2026 Study Guide
when and individual or
country can produce a
good using fewer re-
sources
18. Comparative Advantage When and individual or
country can produce a
good at a lower opportu-
nity cost
19. PPF graphical representation
of a combination of goods
that an individual or coun-
try can produce
20. PPF Efficiency on line is eflcient
above the line is unattain-
able
below the line is ineflcient
21. Direct Cost price that can be com-
pletely attributed to the
production of specific
goods or services
22. Indirect Cost cost not directly related to
production
23. Explicit Cost direct payment made to
others in the course of
running a business
24. Demand
2026 Study Guide
1. Economics the study of how peo-
ple allocate their limited
resources to satisfy their
nearly unlimited wants
2. Micro the part of economics
concerned with single fac-
tors and the ettects of in-
dividual decisions
3. Macro the part of economics
concerned with large scale
or general economic fac-
tors, such as interest rates
and national productivity
4. Incentives rewards r punishments
that people react to
5. Scarcity living in a world of finite
resources and having un-
limited needs and wants
6. Trade-offs giving up one thing in or-
der to gain another
7. Opportunity Cost the value of the next
best decision, what it
costs someone to produce
something, loss of poten-
tial gain of other alterna-
tives
, Econ 2110 Final Exam Clemson University
2026 Study Guide
8. Thinking on Margin what a producer/seller
has to sacrifice in order to
sell/produce one more of
an item
9. Positive Economics hows the economy actual-
ly works, facts
10. Normative Economics an opinion of how the
economy should work, not
facts
11. Consumer Surplus willingness to pay minus
the cost/actual price of
item
12. Producer Surplus the cost/actual price of
item minus the production
cost
13. Voluntary Trade trade that is mutually ben-
eficial
14. Specialization leads to increased pro-
ductivity and the division
of knowledge
15. Self-Sufficiency leads to death
16. Division of Knowledge the sum of total knowl-
edge increases and in this
way so does productivity
17. Absolute Advantage
, Econ 2110 Final Exam Clemson University
2026 Study Guide
when and individual or
country can produce a
good using fewer re-
sources
18. Comparative Advantage When and individual or
country can produce a
good at a lower opportu-
nity cost
19. PPF graphical representation
of a combination of goods
that an individual or coun-
try can produce
20. PPF Efficiency on line is eflcient
above the line is unattain-
able
below the line is ineflcient
21. Direct Cost price that can be com-
pletely attributed to the
production of specific
goods or services
22. Indirect Cost cost not directly related to
production
23. Explicit Cost direct payment made to
others in the course of
running a business
24. Demand
