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ECO 202 Final Exam – Questions With Complete Solutions
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ECO 202 Final Exam – Questions With Complete Solutions
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ECO 202 Final Exam – Questions With CompleteSolutions
The purchase by a household in China of a CD produced in the United States is
included in US Right Ans - Net exports
Refer to Table 8-3. Consider the data above (in billions of dollars) for an
economy: Gross domestic product (in billions of dollars) for this economy
equals Right Ans - $1,100
The demand for loanable funds is downward sloping because the _________ the
interest rate, the ________ the number of profitable investment projects a firm
can undertake, and the ________ the quantity demanded of loanable funds.
Right Ans - lower, greater, greater
The nominal interest rate will be less than real interest rate when Right
Ans - the rate of inflation is negative
Which of the following is likely to increase measured GDP? Right Ans -
Marijuana becomes legal to grow and sell
"Household production" refers to Right Ans - goods and services people
produce for themselves
Table 8-11. Consider the following data for Tyrovia, a country that produces
only two products: guns and butter.
Real GDP for Tyrovia for 2013 using 2005 at the base year equals Right Ans
- $690
In periods when prices are falling, on average, Right Ans - real GDP will
grow faster than nominal GDP
An inflation rate of 5% between 2013 and 2014 would be implied by a change
in the GDP deflator from ______ in 2013 to ________ in 2014. Right Ans - 260;
273
, Table 8-20. Given the following information, calcuate the rate of increase in
the price level from 2012 to 2013. Right Ans - 8.6%
The value of what a U.S.-owned McDonald's produces in South Korea is
included in the U.S. ______ and the South Korean _______. Right Ans - GNP;
GDP
Which of the following would increase GNP in the United States? Right Ans
- An increase in the production of U.S.-owned General Motors cares made in
Mexico
The Bureau of Labor Statistics would categorize a person as ________ is they
were temporarily away from their job because they were ill. Right Ans -
employed
Which of the following describes a situation in which the person is hurt by
inflation? Right Ans - A person who is paid a fixed income during an
inflationary period
The cost to firms of changing prices Right Ans - is called a menu cost
If the number of unemployed workers is 19 million, the number in the
working-age population is 500 million, and the unemployment rate is 4%,
how many workers are in the labor force? Right Ans - 475 million
Full employment is not considered to be zero unemployment because
Right Ans - people do not find jobs instantaneously
Table 9-2. Assume the market basket for the consumer price index has two
products - bread and milk - with the following values in 2006 and 2013 for
price and quantity: the Consumer Price Index for 2013 equals Right Ans -
116
Assume the average annual CPI values for 2012 and 2013 were 207.3 and
215.3, respectively. What was the percent increase in the CPI between these
two years? Right Ans - 3.86
If the minimum wage is set above the market wage, Right Ans -
unemployment will rise.
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