ECON 2110 FINAL EXAM CLEMSON QUESTIONS
WITH CORRECT ANSWERS 2025
Economics - CORRECT ANSWER -
the study of how people allocate their limited resources to satisfy their nearly unlimited wants
Micro - CORRECT ANSWER -
the part of economics concerned with single factors and the effects of individual decisions
Macro - CORRECT ANSWER -
the part of economics concerned with large scale or general economic factors, such as interest ra
tes and national productivity
Incentives - CORRECT ANSWER -rewards r punishments that people react to
Scarcity - CORRECT ANSWER -
living in a world of finite resources and having unlimited needs and wants
Trade-offs - CORRECT ANSWER -giving up one thing in order to gain another
Opportunity Cost - CORRECT ANSWER -
the value of the next best decision, what it costs someone to produce something, loss of potenti
al gain of other alternatives
ThinkingEon Margin - CORRECT ANSWER -
whatEa producer/seller has to sacrifice in order to sell/produce one more of an item
Positive Economics - CORRECT ANSWER -hows the economy actually works, facts
,Normative Economics - CORRECT ANSWER -
an opinion of how the economy should work, not facts
Consumer Surplus -ECORRECT ANSWER -willingness to pay minus the cost/actual price of item
Producer Surplus - CORRECT ANSWER -the cost/actual price of item minus the production cost
Voluntary Trade - CORRECT ANSWER -trade that is mutually beneficial
Specialization -ECORRECT ANSWER -leadsEto increased productivity and the division of knowledge
Self-Sufficiency - CORRECT ANSWER -leads to death
Division of Knowledge - CORRECT ANSWER -
the sum of total knowledge increases and in this way so does productivity
Absolute Advantage - CORRECT ANSWER -
when and individual or country can produce a good using fewer resources
Comparative Advantage - CORRECT ANSWER -
When and individual or country can produce a good at a lower opportunity cost
PPF - CORRECT ANSWER -
graphical representation of a combination of goods thatEan individual or country can produce
PPF Efficiency - CORRECT ANSWER -on line isEefficient
above the line isEunattainable
, below the line is inefficient
Direct Cost - CORRECT ANSWER -
price that can be completely attributed to the production of specific goods or services
Indirect Cost - CORRECT ANSWER -cost not directly related to production
Explicit Cost - CORRECT ANSWER -
direct payment made to others in the course of running a business
Demand - CORRECT ANSWER -
the relationship between the price of a good and the quantity demanded
Supply - CORRECT ANSWER -as the price of a good rises, the quantity supplied also rises
Equilibrium - CORRECT ANSWER -when the quantity demanded equals the quantity supplied
Surplus - CORRECT ANSWER -when the quantity supplied is greater than the quantity demanded
Shortage - CORRECT ANSWER -
when the quantity demanded is greater than the quantity supplied
Inelastic - CORRECT ANSWER -when the elasticity of demand is less than -
1 (greater than one absolute value)
Elastic - CORRECT ANSWER -when the elasticity of demand is between -
1 and 0E(between 0 ad 1 in absolute value)
WITH CORRECT ANSWERS 2025
Economics - CORRECT ANSWER -
the study of how people allocate their limited resources to satisfy their nearly unlimited wants
Micro - CORRECT ANSWER -
the part of economics concerned with single factors and the effects of individual decisions
Macro - CORRECT ANSWER -
the part of economics concerned with large scale or general economic factors, such as interest ra
tes and national productivity
Incentives - CORRECT ANSWER -rewards r punishments that people react to
Scarcity - CORRECT ANSWER -
living in a world of finite resources and having unlimited needs and wants
Trade-offs - CORRECT ANSWER -giving up one thing in order to gain another
Opportunity Cost - CORRECT ANSWER -
the value of the next best decision, what it costs someone to produce something, loss of potenti
al gain of other alternatives
ThinkingEon Margin - CORRECT ANSWER -
whatEa producer/seller has to sacrifice in order to sell/produce one more of an item
Positive Economics - CORRECT ANSWER -hows the economy actually works, facts
,Normative Economics - CORRECT ANSWER -
an opinion of how the economy should work, not facts
Consumer Surplus -ECORRECT ANSWER -willingness to pay minus the cost/actual price of item
Producer Surplus - CORRECT ANSWER -the cost/actual price of item minus the production cost
Voluntary Trade - CORRECT ANSWER -trade that is mutually beneficial
Specialization -ECORRECT ANSWER -leadsEto increased productivity and the division of knowledge
Self-Sufficiency - CORRECT ANSWER -leads to death
Division of Knowledge - CORRECT ANSWER -
the sum of total knowledge increases and in this way so does productivity
Absolute Advantage - CORRECT ANSWER -
when and individual or country can produce a good using fewer resources
Comparative Advantage - CORRECT ANSWER -
When and individual or country can produce a good at a lower opportunity cost
PPF - CORRECT ANSWER -
graphical representation of a combination of goods thatEan individual or country can produce
PPF Efficiency - CORRECT ANSWER -on line isEefficient
above the line isEunattainable
, below the line is inefficient
Direct Cost - CORRECT ANSWER -
price that can be completely attributed to the production of specific goods or services
Indirect Cost - CORRECT ANSWER -cost not directly related to production
Explicit Cost - CORRECT ANSWER -
direct payment made to others in the course of running a business
Demand - CORRECT ANSWER -
the relationship between the price of a good and the quantity demanded
Supply - CORRECT ANSWER -as the price of a good rises, the quantity supplied also rises
Equilibrium - CORRECT ANSWER -when the quantity demanded equals the quantity supplied
Surplus - CORRECT ANSWER -when the quantity supplied is greater than the quantity demanded
Shortage - CORRECT ANSWER -
when the quantity demanded is greater than the quantity supplied
Inelastic - CORRECT ANSWER -when the elasticity of demand is less than -
1 (greater than one absolute value)
Elastic - CORRECT ANSWER -when the elasticity of demand is between -
1 and 0E(between 0 ad 1 in absolute value)
