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Econ 102 Penn State University Examination Questions and Answers (Latest Update 2025)
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Econ 102 Penn State University Examination Questions and Answers (Latest Update 2025)
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Econ 102 Penn State UniversityExamination Questions and Answers
(Latest Update 2025)
What is Economics? - Correct Answer ✅ Economics is the
study of how people allocate their limited resources to satisfy
their nearly unlimited wants.
What is scarcity? - Correct Answer ✅ Scarcity is the word
used to describe the limited nature of society's resources, to
which we have an unlimited want or need for.
What are the 5 foundations of economics? - Correct Answer
✅ Incentives Matter, Trade-Offs, Opportunity cost, Marginal
thinking, and Trade Creates Value.
What kind of incentives are there in economics? - Correct
Answer ✅ Positive & Negative (i.e. grades), Direct & Indirect
(i.e. unintended consequences).
What are some examples of trade-offs? - Correct Answer ✅
College VS working, or a little of both. Cleaner environment or
more production.
, Econ 102 Penn State University
Examination Questions and Answers
(Latest Update 2025)
What is opportunity cost? - Correct Answer ✅ Highest
valued alternative that must be given up to engage in an
activity (i.e. If you go skiing, you could get hurt and lose
money from taking time off work. Or going on a hike rather
than a concert)
What is marginal thinking? - Correct Answer ✅ Evaluate
whether the benefit of one or more unit of something is
greater than its cost. (i.e. cleaning VS embarrassment of
being dirty. Or buying books at the bookstore VS renting or
sharing with friends).
Trade Creates Value - Correct Answer ✅ Trade creates
value because participants in markets are able to specialize
in the production of goods and services that they have a
comparative advantage in making.
Model building and gains from trade - Correct Answer ✅
Gains from trade by getting better results or more of what
you wanted.
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