ASU ECON 211 2026 FULL QUESTIONS
CORRECT ANSWERS GRADED A+
◉ Total Output in an economy increases when each person
specializes because. Answer: Each person spends more time
producing that product in which he or she has a comparative
advantage
◉ The producer that requires a smaller quantity of inputs to
produce a certain amount of a good, relative to the quantities of
inputs required by other producers to produce the same amount of
that good. Answer: Has an absolute advantage in the production of
that good
◉ The quantity demanded of a good is the amount that buyers are.
Answer: Willing and able to purchase
◉ The market demand curve. Answer: Represents the sum of the
quantities demanded by all the buyers at each price of the good.
◉ The quantity supplied of a good is. Answer: The amount sellers
are willing and able to produce
,◉ What causes equilibrium price to fall. Answer: Demand increase
and Supply decrease
Demand and supply both decrease
Demand decrease and Supply increase
Demand and supply both increase
Demand decrease and supply increase
◉ GDP is defined by. Answer: Value of all final goods and services
produced within a country in a given period of time
◉ Changes in nominal GDP reflect. Answer: Both changes in price
and the amount being produced
◉ The unemployment rate is computed as the number of
unemployed. Answer: Divided by the labor force all times 100
◉ Some persons are counted as out of the labor force because they
have made no serious attempt to find work. However some of these
individuals may want to work even though they are too discouraged
to make a serious effort to look. If these individuals were counted as
unemployed instead of out of the labor force, then. Answer: Both
unemployment rate and the labor- force participation rate would be
higher
,◉ The CPI is used to. Answer: Monitor changes in the cost of living
over time
◉ Which of the following statements about real and nominal interest
rates is correct. Answer: When the inflation rate is positive, the
nominal interest rate is necessarily greater than the real interest
rate
◉ Sue was an accountant in 1944 and earned 12,000 That year
Her son Josh earns 210,000 in 2013
The Price index in 1944 was 17.6 and 218.4 in 2013
Sue's income amounts to what percentage of josh's. Answer: 70.9
◉ During a certain year, the CPI increased from 120 to 132 and the
purchasing power of a bank account increased by 4% For that year.
Answer: Nominal interest rate was 14 %
◉ Productivity is defined as the quantity of. Answer: Goods and
services produced from each unit of labor output
◉ All else equal, If there are diminishing returns, then which of the
following is true if a country increases its capital by one unit.
, Answer: Output will rise but by less than it did when the previous
unit was added
◉ A Bond buyer is. Answer: Saver. Long term bonds have more risk
than short term bonds
◉ The source of the supply of loanable funds. Answer: Is saving and
the source of demand for loanable funds is investment
◉ Economist equate money with. Answer: Assets people use
regularly to buy goods and services
◉ Dollar bills, Paintings and emerald necklaces are. Answer: Stores
of value
◉ An Open market purchase. Answer: Increase the number of
dollars in the hands of the public and decreases the number of
bonds in the hands of the public
◉ The Fed Reserve. Answer: Is responsible for conduction the
nations monetary policy and it plays a role in regulating banks
CORRECT ANSWERS GRADED A+
◉ Total Output in an economy increases when each person
specializes because. Answer: Each person spends more time
producing that product in which he or she has a comparative
advantage
◉ The producer that requires a smaller quantity of inputs to
produce a certain amount of a good, relative to the quantities of
inputs required by other producers to produce the same amount of
that good. Answer: Has an absolute advantage in the production of
that good
◉ The quantity demanded of a good is the amount that buyers are.
Answer: Willing and able to purchase
◉ The market demand curve. Answer: Represents the sum of the
quantities demanded by all the buyers at each price of the good.
◉ The quantity supplied of a good is. Answer: The amount sellers
are willing and able to produce
,◉ What causes equilibrium price to fall. Answer: Demand increase
and Supply decrease
Demand and supply both decrease
Demand decrease and Supply increase
Demand and supply both increase
Demand decrease and supply increase
◉ GDP is defined by. Answer: Value of all final goods and services
produced within a country in a given period of time
◉ Changes in nominal GDP reflect. Answer: Both changes in price
and the amount being produced
◉ The unemployment rate is computed as the number of
unemployed. Answer: Divided by the labor force all times 100
◉ Some persons are counted as out of the labor force because they
have made no serious attempt to find work. However some of these
individuals may want to work even though they are too discouraged
to make a serious effort to look. If these individuals were counted as
unemployed instead of out of the labor force, then. Answer: Both
unemployment rate and the labor- force participation rate would be
higher
,◉ The CPI is used to. Answer: Monitor changes in the cost of living
over time
◉ Which of the following statements about real and nominal interest
rates is correct. Answer: When the inflation rate is positive, the
nominal interest rate is necessarily greater than the real interest
rate
◉ Sue was an accountant in 1944 and earned 12,000 That year
Her son Josh earns 210,000 in 2013
The Price index in 1944 was 17.6 and 218.4 in 2013
Sue's income amounts to what percentage of josh's. Answer: 70.9
◉ During a certain year, the CPI increased from 120 to 132 and the
purchasing power of a bank account increased by 4% For that year.
Answer: Nominal interest rate was 14 %
◉ Productivity is defined as the quantity of. Answer: Goods and
services produced from each unit of labor output
◉ All else equal, If there are diminishing returns, then which of the
following is true if a country increases its capital by one unit.
, Answer: Output will rise but by less than it did when the previous
unit was added
◉ A Bond buyer is. Answer: Saver. Long term bonds have more risk
than short term bonds
◉ The source of the supply of loanable funds. Answer: Is saving and
the source of demand for loanable funds is investment
◉ Economist equate money with. Answer: Assets people use
regularly to buy goods and services
◉ Dollar bills, Paintings and emerald necklaces are. Answer: Stores
of value
◉ An Open market purchase. Answer: Increase the number of
dollars in the hands of the public and decreases the number of
bonds in the hands of the public
◉ The Fed Reserve. Answer: Is responsible for conduction the
nations monetary policy and it plays a role in regulating banks
