Clemson Macroeconomics 2120 Final Exam Questions and
VERIFIED Answers FOR 2026 GRADED TO PASS.
Adam Smith's metaphor of the "invisible hand" can lead to benefits to society when...
institutions align the private interest with the social interest
When people choose to recycle and buy appliances that conserve on energy, they are acting in
______ & _______.
the social interest, their self-interest
In an effort to clean air, many communities impose restrictions on the burning of garbage. This
policy causes more garbage to be buried underground, potentially increasing groundwater
contamination. What concept does this example represent?
Trade-Offs
The opportunity cost of receiving a free ticked to the NCAA championship game with a face-value
of $450 and attending the game is:
there resale value of the lost market value of selling the ticket and the time to go
What are the institutions that help foster the appropriate incentives for economic growth?
a dependable legal system, property rights, & competitive & open markets
Gross Domestic Product (GDP) is best defined as the _____ value of all _____ goods and services
that are produced _________.
market, final, within a country in 1 year
what data is used to calculate GDP?
both quantities and prices of goods
If a country's GDP per capita rises, this means that...
i. the country has fewer poorer people
ii. some people in the country have more wealth
iii. the country's standard of living is rising
ii & iii
It is often said that _____ is the "main driver" the economy because its share of GDP is larger than
any of the other expenditure components.
consumption
The most volatile component of GDP is....
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, investment
Private spending on tools, plant, and equipment that are used to produce future output is called...
investment
the factor income approach to calculating GDP can be summarized as the summation of ....
wages, interest, rent, & profit
Sydney buys a used car form Lemon Drop Used Cars in 2015 for $3,000. Francis, a salesperson at
Lemon Drop, receives $200 in commission for selling the car to Sydney. How much does this
transaction contribute to 2015 GDP?
$200
Last month Trevor purchased $177 of Swedish Fish from an online retailer in Sweden. How does
this transaction contribute to GDP in 2016?
Consumption increases by $177 and net exports fall $177
Identify the "bad" that t is not counted in GDP.
a. a decrease in water quality
b. the purchase of a smokestack scrubber required by environmental regulation
c. an increase in influenza vaccines
d. a decrease in the average number of hours in the work week
a. a decrease in water quality
If real GDP per capita in the US is currently $50,000 and it grows 1% per year, how many years
will it take to reach $200,000?
approximately 140 years
Increases in the level of corruption in a country tend to...
decreased per capita GDP
The correlation between infant mortality and real GDP per capita is ....
negative
Countries with higher levels of real per capita GDP tend to have
i. better educational opportunities
ii. higher infant death rates
iii. higher life expectancy rates
i & iii
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VERIFIED Answers FOR 2026 GRADED TO PASS.
Adam Smith's metaphor of the "invisible hand" can lead to benefits to society when...
institutions align the private interest with the social interest
When people choose to recycle and buy appliances that conserve on energy, they are acting in
______ & _______.
the social interest, their self-interest
In an effort to clean air, many communities impose restrictions on the burning of garbage. This
policy causes more garbage to be buried underground, potentially increasing groundwater
contamination. What concept does this example represent?
Trade-Offs
The opportunity cost of receiving a free ticked to the NCAA championship game with a face-value
of $450 and attending the game is:
there resale value of the lost market value of selling the ticket and the time to go
What are the institutions that help foster the appropriate incentives for economic growth?
a dependable legal system, property rights, & competitive & open markets
Gross Domestic Product (GDP) is best defined as the _____ value of all _____ goods and services
that are produced _________.
market, final, within a country in 1 year
what data is used to calculate GDP?
both quantities and prices of goods
If a country's GDP per capita rises, this means that...
i. the country has fewer poorer people
ii. some people in the country have more wealth
iii. the country's standard of living is rising
ii & iii
It is often said that _____ is the "main driver" the economy because its share of GDP is larger than
any of the other expenditure components.
consumption
The most volatile component of GDP is....
Page 1 of 9
, investment
Private spending on tools, plant, and equipment that are used to produce future output is called...
investment
the factor income approach to calculating GDP can be summarized as the summation of ....
wages, interest, rent, & profit
Sydney buys a used car form Lemon Drop Used Cars in 2015 for $3,000. Francis, a salesperson at
Lemon Drop, receives $200 in commission for selling the car to Sydney. How much does this
transaction contribute to 2015 GDP?
$200
Last month Trevor purchased $177 of Swedish Fish from an online retailer in Sweden. How does
this transaction contribute to GDP in 2016?
Consumption increases by $177 and net exports fall $177
Identify the "bad" that t is not counted in GDP.
a. a decrease in water quality
b. the purchase of a smokestack scrubber required by environmental regulation
c. an increase in influenza vaccines
d. a decrease in the average number of hours in the work week
a. a decrease in water quality
If real GDP per capita in the US is currently $50,000 and it grows 1% per year, how many years
will it take to reach $200,000?
approximately 140 years
Increases in the level of corruption in a country tend to...
decreased per capita GDP
The correlation between infant mortality and real GDP per capita is ....
negative
Countries with higher levels of real per capita GDP tend to have
i. better educational opportunities
ii. higher infant death rates
iii. higher life expectancy rates
i & iii
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