Econ 211 Final UNL Questions With Complete Solutions
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Course
Econ 211
Institution
Econ 211
National income accountants can avoid multiple counting by: - Correct Answer -only counting final goods
Arthur sells $100 worth of cotton to Bob, Bob turns the cotton into cloth which he sells to camille for $300. Camille uses the cloth to make prom dresses that she sells to Donita for $700. d...
Econ 211 Final UNL Questions With Complete
Solutions
National income accountants can avoid multiple counting by: - Correct Answer -only counting final
goods
Arthur sells $100 worth of cotton to Bob, Bob turns the cotton into cloth which he sells to camille for
$300. Camille uses the cloth to make prom dresses that she sells to Donita for $700. donita sells the
dresses for $1200 to kids attending prom. The total contribution to GDP of this series of transaction is: -
Correct Answer -$1200
GDP can be calculated by summing: - Correct Answer -Consumption+I+G+Xn
Net exports are negative when: - Correct Answer -imports exceed its exports
Transfer payments are: - Correct Answer -excluded when calculating GDP because they do not reflect
current production
The largest component of total expenditures in the US is: - Correct Answer -consumption
The phase of the business cycle in which real GDP declines is called - Correct Answer -recession
Refer to the above info. The labor force in Scoob is: - Correct Answer -labor force=
employed+unemployed
Alex stays at home and is a full-time caretaker of his children. Officially, he is: - Correct Answer -not in
the labor force
The unemployment rate is the: - Correct Answer -percentage of the labor force that is unemployed
Inflation means that: - Correct Answer -prices on average are rising, although some particular prices
may be falling
, Cost-push inflation: - Correct Answer reduces real output
During a period of hyperinflation: - Correct Answer -people tend to hold goods rather than money
The MPC for an economy is: - Correct Answer the slope of the consumption schedule or line
Dissaving occurs where: - Correct Answer -consumption exceeds income
Refer to the above diagram. The break-even level of income is: - Correct Answer -$150 where the two
lines meet
Refer to above diagram. The equation for the consumption schedule is: - Correct Answer -y=a+bx
C=60+.6y
The investment demand curves portrays an inverse(negative) relationship between - Correct Answer -
the real interest rate and investment
The multiplier effect means that: - Correct Answer -an increase in investment(can be any in GDP) can
cause GDP to change by a larger amount
The multiplier can be calculated as: - Correct Answer 1/(1-MPC)
Assume the MPC is 2/3. If investment spending increases by $2 billion, the level of GDP will increase by: -
Correct Answer -$6 billion
The terms of trade reflect the: - Correct Answer -ratio at which nations will exchange two goods
Refer to the above tables. In Latalia the opportunity cost of 1 ton of pork: - Correct Answer -5 tons of
beans
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