Macro Final Actual Exam Questions and
CORRECT Answers
In the circular-flow diagram, which of the following is not a factor of production? -
CORRECT ANSWER✔-- Money
To say that a price ceiling is nonbinding is to say that the price ceiling - CORRECT
ANSWER✔-- is set above the equilibrium price.
Some, but not all, government economists are employed within the administrative branch of
government. Which of the following government agencies employ economists outside of the
administrative branch? - CORRECT ANSWER✔-- The Congressional Budget Office
When a country has a comparative advantage in producing a certain good, - CORRECT
ANSWER✔-- then specializing in the production of that good and trading for other goods
could allow that country to consume at a point beyond its production possibilities frontier .
If the demand for a product increases, then we would expect equilibrium price - CORRECT
ANSWER✔-- and equilibrium quantity both to decrease
A typical society strives to get the most it can from its scarce resources. At the same time, the
society attempts to distribute the benefits of those resources to the members of the society in
a fair manner. However, redistributing income from rich to poor reduces the reward for
working hard. Therefore, society faces a tradeoff between - CORRECT ANSWER✔--
efficiency and equality.
When we move along a given demand curve, - CORRECT ANSWER✔-- all nonprice
determinants of demand are held constant.
Eva wants to create a graph containing the prices of concert tickets and the corresponding
quantities of concert tickets demanded by customers. She should use a - CORRECT
ANSWER✔-- coordinate system
Resources are - CORRECT ANSWER✔-- scarce for households and scarce for economies.
, Suppose the price elasticity of supply for cheese is 0.6 in the short run and 1.4 in the long run.
If an increase in the demand for cheese causes the price of cheese to increase by 15 percent,
then the quantity supplied of cheese will increase by - CORRECT ANSWER✔-- 9 percent in
the short run and 21 percent in the long run.
When the price of candy bars is $1.00, the quantity demanded is 500 per day. When the price
falls to $0.80, the quantity demanded increases to 600. Given this information and using the
midpoint method, we know that the demand for candy bars is - CORRECT ANSWER✔--
inelastic
While pollution regulations yield the benefit of a cleaner environment and the improved
health that comes with it, the regulations come at the cost of reducing the incomes of the
regulated firms' owners, workers, and customers. This statement illustrates the principle that -
CORRECT ANSWER✔-- people face tradeoffs
A tax on the buyers of cameras encourages - CORRECT ANSWER✔-- buyers to demand a
smaller quantity at every price.
When computing the opportunity cost of attending a concert you should include - CORRECT
ANSWER✔-- the price you pay for the ticket and the value of your time.
Suppose buyers of fountain drinks are required to send $0.50 to the government for every
fountain drink they buy. Further, suppose this tax causes the effective price received by
sellers of fountain drinks to fall by $0.20 per drink. Which of the following statements is
correct? - CORRECT ANSWER✔-- This tax causes the demand curve for fountain drinks to
shift downward by $0.50 at each quantity.
Which of the following areas of study typifies macroeconomics as opposed to
microeconomics? - CORRECT ANSWER✔-- The effect on the economy of changes in the
nation's unemployment rate
The "invisible hand" refers to - CORRECT ANSWER✔-- how the decisions of households
and firms lead to desirable market outcomes.
CORRECT Answers
In the circular-flow diagram, which of the following is not a factor of production? -
CORRECT ANSWER✔-- Money
To say that a price ceiling is nonbinding is to say that the price ceiling - CORRECT
ANSWER✔-- is set above the equilibrium price.
Some, but not all, government economists are employed within the administrative branch of
government. Which of the following government agencies employ economists outside of the
administrative branch? - CORRECT ANSWER✔-- The Congressional Budget Office
When a country has a comparative advantage in producing a certain good, - CORRECT
ANSWER✔-- then specializing in the production of that good and trading for other goods
could allow that country to consume at a point beyond its production possibilities frontier .
If the demand for a product increases, then we would expect equilibrium price - CORRECT
ANSWER✔-- and equilibrium quantity both to decrease
A typical society strives to get the most it can from its scarce resources. At the same time, the
society attempts to distribute the benefits of those resources to the members of the society in
a fair manner. However, redistributing income from rich to poor reduces the reward for
working hard. Therefore, society faces a tradeoff between - CORRECT ANSWER✔--
efficiency and equality.
When we move along a given demand curve, - CORRECT ANSWER✔-- all nonprice
determinants of demand are held constant.
Eva wants to create a graph containing the prices of concert tickets and the corresponding
quantities of concert tickets demanded by customers. She should use a - CORRECT
ANSWER✔-- coordinate system
Resources are - CORRECT ANSWER✔-- scarce for households and scarce for economies.
, Suppose the price elasticity of supply for cheese is 0.6 in the short run and 1.4 in the long run.
If an increase in the demand for cheese causes the price of cheese to increase by 15 percent,
then the quantity supplied of cheese will increase by - CORRECT ANSWER✔-- 9 percent in
the short run and 21 percent in the long run.
When the price of candy bars is $1.00, the quantity demanded is 500 per day. When the price
falls to $0.80, the quantity demanded increases to 600. Given this information and using the
midpoint method, we know that the demand for candy bars is - CORRECT ANSWER✔--
inelastic
While pollution regulations yield the benefit of a cleaner environment and the improved
health that comes with it, the regulations come at the cost of reducing the incomes of the
regulated firms' owners, workers, and customers. This statement illustrates the principle that -
CORRECT ANSWER✔-- people face tradeoffs
A tax on the buyers of cameras encourages - CORRECT ANSWER✔-- buyers to demand a
smaller quantity at every price.
When computing the opportunity cost of attending a concert you should include - CORRECT
ANSWER✔-- the price you pay for the ticket and the value of your time.
Suppose buyers of fountain drinks are required to send $0.50 to the government for every
fountain drink they buy. Further, suppose this tax causes the effective price received by
sellers of fountain drinks to fall by $0.20 per drink. Which of the following statements is
correct? - CORRECT ANSWER✔-- This tax causes the demand curve for fountain drinks to
shift downward by $0.50 at each quantity.
Which of the following areas of study typifies macroeconomics as opposed to
microeconomics? - CORRECT ANSWER✔-- The effect on the economy of changes in the
nation's unemployment rate
The "invisible hand" refers to - CORRECT ANSWER✔-- how the decisions of households
and firms lead to desirable market outcomes.
