ECN 211 Final (Exams 1, 2, 3) ASU Douglas
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1. Which of the following is included in GDP? C. medical mar-
A. recreational marijuana purchased from a drug deal- ijuana purchased
er by a college student? from a govern-
B. Recreational marijuana purchased and consumber ment-run pharma-
by a man in his attic. cy by a glaucoma
C. medical marijuana purchased from a govern- patient.
ment-run pharmacy by a glaucoma patient.
D. All of the above
2. you know a candy bar cost five cents in 1962. You also C. five cents * (To-
know the CPI for 1962 and the CPI today. Which of the day's CPI/ 1962
following would you use to compute the price? CPI)
A. five cents * today's CPI- five cents * CPI in 1962
B.Five cents *(1962 CPI/ Today's CPI)
C. five cents * (Today's CPI/ 1962 CPI)
D. five cents * (today's CPI - 1962 CPI)/1962 CPI
3. Discouraged workers are included in... D. none of the
A. Frictional Unemployment above
B.The number of unemployed
C. the labor force
D. none of the above
4. when a country has a comparative advantage in pro- D. None of the
ducing a certain good, above
A. The country should produce just enough of that
good for its own consumption.
B. the country should import that good.
C. The country's opportunity cost of that good is high
relative to other countries' opportunity costs of the
same good.
D. None of the above
5. The unemployment rate is computed as the number of C. divided by the
unemployed number of em-
A. times the labor-force participation rate, all times ployed, all times
100. 100
B. divided by the adult population, all times 100
, ECN 211 Final (Exams 1, 2, 3) ASU Douglas
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C. divided by the number of employed, all times 100
D. Divided by the labor force, all times 100.
6. In the economy of Talikastan in 2015, exports were A. $2000
$500, GDP was $6400, Government Purchases were
$1700, Imports were $400, and investment was $1800.
What was Talikastan's consumption in 2015?
A. $2000
B. $3800
C. $2800
D. $3000
7. Sheri, a U.S. Citizen, works only in Germany. The value A. in German GDP,
she adds to the production in Germany is included.. but is not included
A. in German GDP, but is not included in U.S. GDP in U.S. GDP
B. in U.S. GDP, but is not included in German GDP
C. in both German GDP and U.S. GDP.
D. in neither German GDP nor U.S. GDP.
8. Transfer payments are: A. not included in
A. not included in GDP because they are not payments GDP because they
for currently produced goods or services. are not payments
B. Included in GDP because they eventually will be for currently pro-
spent on consumption. duced goods or
C. Included in GDP because they represent income to services.
individuals.
D. not included in GDP because taxes will have to be
raised to pay for them.
9. Cyclical unemployment refers to D. short-run fluctu-
A. Changes in unemployment due to changes in nat- ations around the
ural rate of unemployment. natural rate of un-
B. The portion of unemployment created by job employment.
search.
C. The portion of unemployment created by wages set
above the equilibrium level.
D. short-run fluctuations around the natural rate of
unemployment.
10.
, ECN 211 Final (Exams 1, 2, 3) ASU Douglas
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The CPI is more commonly used as a gauge of infla- D. the CPI bet-
tion than the GDP deflator is because ter reflects the
A. the GDP inflator cannot be used to gauge inflation. good and services
B. the CPI is calculated more often than the GDP bought by con-
deflator is sumers.
C. the CPI is easier to measure
D. the CPI better reflects the good and services
bought by consumers.
11. consider 2 labor markets in which jobs are equally A. rise for the
attractive in all respects other than the wage rate. All union jobs and fall
workers are equally able to do either job. Initially, both for the nonunion
labor markets are perfectly competitive. If a union or- jobs
ganizes workers in one of the markets, then the wage
rates will tend to
A. rise for the union jobs and fall for the nonunion jobs
B. Rise in both markets
C. Fall in both markets
D. rise for the union jobs, but remain unchanged for
the nonunion jobs.
12. A tire manufacturer produces 400 tires valued at $20 C. $17,000
each. Three hundred tires are sold to a tire shop,
which then sells them to households for $50 each. The
remaining tires are unsold and are added to the tire
manufacturer's inventory. How much is added to GDP.
A. $13,000
B. $15,000
C. $17,000
D. $8000
13. Ms. Lane borrowed $1,000 from her bank for one year D. Ms. Lane's re-
at an interest rate of 10 percent. During that year, the payment will give
price level went up by 15 percent. Which of following the bank less
statements is correct. purchasing power
A. Ms. Lane will repay the bank fewer dollars than she than it originally
initially borrowed. loaned her.
B. Ms. Lane's repayment will give the bank the same
purchasing power that it originally loaned her.
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1. Which of the following is included in GDP? C. medical mar-
A. recreational marijuana purchased from a drug deal- ijuana purchased
er by a college student? from a govern-
B. Recreational marijuana purchased and consumber ment-run pharma-
by a man in his attic. cy by a glaucoma
C. medical marijuana purchased from a govern- patient.
ment-run pharmacy by a glaucoma patient.
D. All of the above
2. you know a candy bar cost five cents in 1962. You also C. five cents * (To-
know the CPI for 1962 and the CPI today. Which of the day's CPI/ 1962
following would you use to compute the price? CPI)
A. five cents * today's CPI- five cents * CPI in 1962
B.Five cents *(1962 CPI/ Today's CPI)
C. five cents * (Today's CPI/ 1962 CPI)
D. five cents * (today's CPI - 1962 CPI)/1962 CPI
3. Discouraged workers are included in... D. none of the
A. Frictional Unemployment above
B.The number of unemployed
C. the labor force
D. none of the above
4. when a country has a comparative advantage in pro- D. None of the
ducing a certain good, above
A. The country should produce just enough of that
good for its own consumption.
B. the country should import that good.
C. The country's opportunity cost of that good is high
relative to other countries' opportunity costs of the
same good.
D. None of the above
5. The unemployment rate is computed as the number of C. divided by the
unemployed number of em-
A. times the labor-force participation rate, all times ployed, all times
100. 100
B. divided by the adult population, all times 100
, ECN 211 Final (Exams 1, 2, 3) ASU Douglas
Study online at https://quizlet.com/_fcp47e
C. divided by the number of employed, all times 100
D. Divided by the labor force, all times 100.
6. In the economy of Talikastan in 2015, exports were A. $2000
$500, GDP was $6400, Government Purchases were
$1700, Imports were $400, and investment was $1800.
What was Talikastan's consumption in 2015?
A. $2000
B. $3800
C. $2800
D. $3000
7. Sheri, a U.S. Citizen, works only in Germany. The value A. in German GDP,
she adds to the production in Germany is included.. but is not included
A. in German GDP, but is not included in U.S. GDP in U.S. GDP
B. in U.S. GDP, but is not included in German GDP
C. in both German GDP and U.S. GDP.
D. in neither German GDP nor U.S. GDP.
8. Transfer payments are: A. not included in
A. not included in GDP because they are not payments GDP because they
for currently produced goods or services. are not payments
B. Included in GDP because they eventually will be for currently pro-
spent on consumption. duced goods or
C. Included in GDP because they represent income to services.
individuals.
D. not included in GDP because taxes will have to be
raised to pay for them.
9. Cyclical unemployment refers to D. short-run fluctu-
A. Changes in unemployment due to changes in nat- ations around the
ural rate of unemployment. natural rate of un-
B. The portion of unemployment created by job employment.
search.
C. The portion of unemployment created by wages set
above the equilibrium level.
D. short-run fluctuations around the natural rate of
unemployment.
10.
, ECN 211 Final (Exams 1, 2, 3) ASU Douglas
Study online at https://quizlet.com/_fcp47e
The CPI is more commonly used as a gauge of infla- D. the CPI bet-
tion than the GDP deflator is because ter reflects the
A. the GDP inflator cannot be used to gauge inflation. good and services
B. the CPI is calculated more often than the GDP bought by con-
deflator is sumers.
C. the CPI is easier to measure
D. the CPI better reflects the good and services
bought by consumers.
11. consider 2 labor markets in which jobs are equally A. rise for the
attractive in all respects other than the wage rate. All union jobs and fall
workers are equally able to do either job. Initially, both for the nonunion
labor markets are perfectly competitive. If a union or- jobs
ganizes workers in one of the markets, then the wage
rates will tend to
A. rise for the union jobs and fall for the nonunion jobs
B. Rise in both markets
C. Fall in both markets
D. rise for the union jobs, but remain unchanged for
the nonunion jobs.
12. A tire manufacturer produces 400 tires valued at $20 C. $17,000
each. Three hundred tires are sold to a tire shop,
which then sells them to households for $50 each. The
remaining tires are unsold and are added to the tire
manufacturer's inventory. How much is added to GDP.
A. $13,000
B. $15,000
C. $17,000
D. $8000
13. Ms. Lane borrowed $1,000 from her bank for one year D. Ms. Lane's re-
at an interest rate of 10 percent. During that year, the payment will give
price level went up by 15 percent. Which of following the bank less
statements is correct. purchasing power
A. Ms. Lane will repay the bank fewer dollars than she than it originally
initially borrowed. loaned her.
B. Ms. Lane's repayment will give the bank the same
purchasing power that it originally loaned her.
