Page 1 of 48
ECO 211 MIDTERM EXAM 2026-2027 COMPLETE
QUESTIONS AND VERIFIED SOLUTIONS LATEST
UPDATE THIS YEAR
ECO 211 MIDTERM EXAM
Someone criticizes the government for increasing interest rates but approving the increase in
government spending. They are criticizing the government's ____policy and praising the
government ___ policy.
a. Microeconomic, Macroeconomic
b. Fiscal, Monetary
c. Macroeconomic, Microeconomic
d. Monetary, Fiscal
d. Monetary, Fiscal
Scarcity is a problem because...
a. Unemployment exists, and therefore some people do not have enough resources to meet
their basic needs.
b. There are only small quantities of resources available on earth
c. Not everyone has the same amount of resources, such as land and labor
d. There are not enough resources to produce all the goods and services people want to
purchase.
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d. There are not enough resources to produce all the goods and services people want to
purchase.
Which of the following statements describes microeconomics?
a. Inflation in the US increased by 5% in May 2021.
b. The price of beef increased by 15% last month due to a cyber attack on a major beef
processing firm.
c. The federal government lowered corporate tax rates in 2019.
d. The size of the U.S. economy shrunk by 7% in 2020 due to the COVID crisis.
b. The price of beef increased by 15% last month due to a cyber attack on a major beef
processing firm.
In market economies, most decisions are made by ___, while in command economies, most
economic decisions are made by ___.
a. Private citizens and firms; the government
b. Households; local leaders
c. Families, private businesses
d. The government; households and firms
a. Private citizens and firms; the government
A good economic theory ....
a. A set of mathematical equations representing economic behavior.
b. Must contain a complete representation of real economic events to be useful.
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c. is a detailed representation of reality used to explain past economic events.
d. captures the essence of the economic concepts and facilitates their understanding.
d. captures the essence of the economic concepts and facilitates their understanding.
Irfan has the budget constraint described in the graph below. If Irfan purchases 1 hour of
tutoring per month and decides to increase his purchases to 2 hours per month, what is the
opportunity cost of the 2nd tutoring hour?
a.
1 hour of tutoring
b.
2 restaurant meals
c.
6 restaurant meals
d.
4 restaurant meals
b.
2 restaurant meals
Alex has a budget of $100 a month for movie tickets and restaurant meals. A movie ticket will
cost $10 and a restaurant meal costs $20. Which of the following combinations is part of
Alex's budget constraint?
a. 2 movie tickets and 1 restaurant meal
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b. 2 movie tickets and 4 restaurant meals
c. 2 movie tickets and 5 restaurant meals
d. 4 movie tickets and 4 restaurant meals
b. 2 movie tickets and 4 restaurant meals
According to the circular flow diagram, households...
Are sellers in the labor market and buyers in the goods and services market.
The circular flow diagram describes...
How firms and households carry out economic activities through the market for input or factors
of production and the market for goods and services.
Which of the following elements demonstrate the degree of globalization?:
a. Large underground economies.
b. High levels of trade and exchange between countries.
c. A low export to Gross Domestic Product ratio for a country.
d. Rapidly growing Gross Domestic Product for several countries.
B- High levels of trade and exchange between countries.
Which of the following examples represents the relationship between division of labor and
production?-
a. A company assigns different parts of the production process to various workers, which
complicates the process and results in waste
ECO 211 MIDTERM EXAM 2026-2027 COMPLETE
QUESTIONS AND VERIFIED SOLUTIONS LATEST
UPDATE THIS YEAR
ECO 211 MIDTERM EXAM
Someone criticizes the government for increasing interest rates but approving the increase in
government spending. They are criticizing the government's ____policy and praising the
government ___ policy.
a. Microeconomic, Macroeconomic
b. Fiscal, Monetary
c. Macroeconomic, Microeconomic
d. Monetary, Fiscal
d. Monetary, Fiscal
Scarcity is a problem because...
a. Unemployment exists, and therefore some people do not have enough resources to meet
their basic needs.
b. There are only small quantities of resources available on earth
c. Not everyone has the same amount of resources, such as land and labor
d. There are not enough resources to produce all the goods and services people want to
purchase.
,Page 2 of 48
d. There are not enough resources to produce all the goods and services people want to
purchase.
Which of the following statements describes microeconomics?
a. Inflation in the US increased by 5% in May 2021.
b. The price of beef increased by 15% last month due to a cyber attack on a major beef
processing firm.
c. The federal government lowered corporate tax rates in 2019.
d. The size of the U.S. economy shrunk by 7% in 2020 due to the COVID crisis.
b. The price of beef increased by 15% last month due to a cyber attack on a major beef
processing firm.
In market economies, most decisions are made by ___, while in command economies, most
economic decisions are made by ___.
a. Private citizens and firms; the government
b. Households; local leaders
c. Families, private businesses
d. The government; households and firms
a. Private citizens and firms; the government
A good economic theory ....
a. A set of mathematical equations representing economic behavior.
b. Must contain a complete representation of real economic events to be useful.
,Page 3 of 48
c. is a detailed representation of reality used to explain past economic events.
d. captures the essence of the economic concepts and facilitates their understanding.
d. captures the essence of the economic concepts and facilitates their understanding.
Irfan has the budget constraint described in the graph below. If Irfan purchases 1 hour of
tutoring per month and decides to increase his purchases to 2 hours per month, what is the
opportunity cost of the 2nd tutoring hour?
a.
1 hour of tutoring
b.
2 restaurant meals
c.
6 restaurant meals
d.
4 restaurant meals
b.
2 restaurant meals
Alex has a budget of $100 a month for movie tickets and restaurant meals. A movie ticket will
cost $10 and a restaurant meal costs $20. Which of the following combinations is part of
Alex's budget constraint?
a. 2 movie tickets and 1 restaurant meal
, Page 4 of 48
b. 2 movie tickets and 4 restaurant meals
c. 2 movie tickets and 5 restaurant meals
d. 4 movie tickets and 4 restaurant meals
b. 2 movie tickets and 4 restaurant meals
According to the circular flow diagram, households...
Are sellers in the labor market and buyers in the goods and services market.
The circular flow diagram describes...
How firms and households carry out economic activities through the market for input or factors
of production and the market for goods and services.
Which of the following elements demonstrate the degree of globalization?:
a. Large underground economies.
b. High levels of trade and exchange between countries.
c. A low export to Gross Domestic Product ratio for a country.
d. Rapidly growing Gross Domestic Product for several countries.
B- High levels of trade and exchange between countries.
Which of the following examples represents the relationship between division of labor and
production?-
a. A company assigns different parts of the production process to various workers, which
complicates the process and results in waste
