ASU ECON 211 FINAL EXAM
COMPREHENSIVE STUDY GUIDE
QUESTIONS WITH VERIFIED ANSWERS
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⩥ 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
⩥ The classical dichotomy refers to the idea that the supply of money.
Answer: Determines nominal variables, But not real variables
⩥ According to the quantity theory of money, a 3% increase in the
money supply. Answer: Causes the price level to rise by 3%
COMPREHENSIVE STUDY GUIDE
QUESTIONS WITH VERIFIED ANSWERS
+
⩥ 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
⩥ The classical dichotomy refers to the idea that the supply of money.
Answer: Determines nominal variables, But not real variables
⩥ According to the quantity theory of money, a 3% increase in the
money supply. Answer: Causes the price level to rise by 3%
