ECO 320 Final Exam Questions and Answers| New Update with 100% Correct Answers
In a command economy, the ______ either makes economic decisions itself of at least strongly
influences how the decisions are made. Government
In a _________, mot economic decisions about what to produce, how to produce it and whom
to prove it are made by buyers and sellers. Market-oriented economy.
The basic difference between macroeconomics and microeconomics is that:
Microeconomics is concerned with the trees (Individual markets) while macro economics is
concerned with the Forrest (aggregate Markets)
Attending college is a case where the ________________ exceeds the monetary cost.
opportunity cost
The opportunity cost of attending university is likely to include all except which of the
following? the cost of haircuts received during the school term
The marginal benefit of a slice of pizza is the: maximum amount that a consumer is willing to
pay for the slice.
Gross domestic product equals $1.2 trillion. If consumptions equals $690 billion, investment
equals $200 billion, and government spending equals $260 billion, then: Exports exceed
imports by $50 billion.
Which of the following is included in GDP calculations? the university tuition paid to enroll in
a course
The gap between exports and imports in a nation's economy is called the ________. Trade
Balance.
, To achieve a high standard of living, a nation should: promote economic growth
In the long run, the most important source of increase in a nations standard of living is a:
high rate of economic growth.
Which of the following best describes the relationship between economic growth and literacy?
Increased literacy stimulates economic growth by raising labor productivity, and as the
economy grows, people consume more education.
Reginald looked for work for six months but could not find a job to his liking. He now spends his
time at the beach. For purposes of employment he is considered: out of the labor force
The most significant real economic cost of high unemployment is: the potential goods and
services that might have been produced but weren't.
Insofar as government public policy is concerned, the best way to battle unemployment would
be __________________. to minimize recessions
The most commonly cited measure of inflation in the United States is: Consumer Price Index
(CPI)
One of the reasons that a rise in the price of food basket goods over time tends to overstate the
rise in a consumer's true cost of living is: Substitution Bias
Another term used to describe negative inflation is: deflation
Trade surpluses and trade deficits can be _______ for an economy in certain circumstances.
either A or B
In a command economy, the ______ either makes economic decisions itself of at least strongly
influences how the decisions are made. Government
In a _________, mot economic decisions about what to produce, how to produce it and whom
to prove it are made by buyers and sellers. Market-oriented economy.
The basic difference between macroeconomics and microeconomics is that:
Microeconomics is concerned with the trees (Individual markets) while macro economics is
concerned with the Forrest (aggregate Markets)
Attending college is a case where the ________________ exceeds the monetary cost.
opportunity cost
The opportunity cost of attending university is likely to include all except which of the
following? the cost of haircuts received during the school term
The marginal benefit of a slice of pizza is the: maximum amount that a consumer is willing to
pay for the slice.
Gross domestic product equals $1.2 trillion. If consumptions equals $690 billion, investment
equals $200 billion, and government spending equals $260 billion, then: Exports exceed
imports by $50 billion.
Which of the following is included in GDP calculations? the university tuition paid to enroll in
a course
The gap between exports and imports in a nation's economy is called the ________. Trade
Balance.
, To achieve a high standard of living, a nation should: promote economic growth
In the long run, the most important source of increase in a nations standard of living is a:
high rate of economic growth.
Which of the following best describes the relationship between economic growth and literacy?
Increased literacy stimulates economic growth by raising labor productivity, and as the
economy grows, people consume more education.
Reginald looked for work for six months but could not find a job to his liking. He now spends his
time at the beach. For purposes of employment he is considered: out of the labor force
The most significant real economic cost of high unemployment is: the potential goods and
services that might have been produced but weren't.
Insofar as government public policy is concerned, the best way to battle unemployment would
be __________________. to minimize recessions
The most commonly cited measure of inflation in the United States is: Consumer Price Index
(CPI)
One of the reasons that a rise in the price of food basket goods over time tends to overstate the
rise in a consumer's true cost of living is: Substitution Bias
Another term used to describe negative inflation is: deflation
Trade surpluses and trade deficits can be _______ for an economy in certain circumstances.
either A or B
