MACRO ECON FINAL EXAM QUESTIONS WITH
CORRECT DETAILED ANSWERS; 100%
GUARANTEED PASS!! (BRAND NEW VERSION)
In the economy of Talikastan in 2015, exports were $500, GDP was $6400, government purchases were
$1700, imports were $400, and investment was $1800. What was Talikastan's consumption in 2015? -
ANS-2800
In a market economy, economic activity is guided by - ANS-self-interest and prices
In a market economy who makes the decision that guide most economic activity? - ANS-Firms and
households
If some year nominal GDP was $28 trillion and real GDP was $32 trillion, what was the GDP deflator? -
ANS-87.5
Which of the following statements is true about point G for this economy? - ANS-there is unemployment
at point G
Which points are not currently attainable but could become achievable for this economy if there is an
improvement in technology? - ANS-J & K
Categories of U.S consumer spending, ranked from largest to smallest, are - ANS-housing, food and
beverages, education and communication and transportation
Which of the following principles is NOT one of the four principles of individual decision making? - ANS-
trade can make everyone better off
Economics deals primarily with the concept of - ANS-scarcity
Grapes are considered intermediate goods - ANS-if the purchaser uses them to make wine to sell others
but not if the purchaser eats them
A shift of the economy's production possibilities frontier from Panel (a) to Panel (b) could be caused by -
ANS-an improvement in donuts production technology
The movement from point M to point K could be caused by - ANS-unemployement
, GDP is not a perfect measure of well being for example - ANS-all of the above are correct
The field of economics is traditionally divided into two broads subfields - ANS-microecon and macroecon
trade makes costs - ANS-lower and raises the variety of goods and services available
Which of the following is an activity undertaken by the actors in rectangle 2? - ANS-own and sell factors
of productions
GDP is defined as - ANS-value of all final goods and services produced within a country in a given period
of time
the inflation rate is - ANS-GDP deflator is year 2 - GDP deflator in year 1 / GDP deflator in year 1 times
100
In communism, central planner decide which of the following? - ANS-all of the above are correct
Which of the following is included in the investment component of GDP? - ANS-John's law firm buys him
a new computer
In a considering how to allocate its scarce resources among its various members, a household considers
- ANS-all of the above
A rationale for government involvement in a market economy is - ANS-all of the above are correct
Market power refers to the - ANS-power of a single person or small group to influence market prices
In economics, the cost of something is - ANS-what you give up to get it
What was country A's investment in 2010? - ANS-1999
The production possibilities frontier is a graph that shows the various combinations of output that an
economy - ANS-should produce
Which of the following statements about GDP is correct - ANS-Nominal GDP values production at
current prices, whereas real GDP values production at constant prices.
The marginal benefits Susie gets from purchasing a third pair of gloves is - ANS-The total benefits she
gets from purchasing three pairs of gloves minus the total benefits she gets from purchasing two pairs of
gloves
trade - ANS-allows specialization which reduces cost
Macroeconomics is the study - ANS-economic-wide phenomena
Which of the following correctly list what is included in the consumption component of GDP? - ANS-
household purchases of services, non durable goods, and durable goods other than residential
construction
CORRECT DETAILED ANSWERS; 100%
GUARANTEED PASS!! (BRAND NEW VERSION)
In the economy of Talikastan in 2015, exports were $500, GDP was $6400, government purchases were
$1700, imports were $400, and investment was $1800. What was Talikastan's consumption in 2015? -
ANS-2800
In a market economy, economic activity is guided by - ANS-self-interest and prices
In a market economy who makes the decision that guide most economic activity? - ANS-Firms and
households
If some year nominal GDP was $28 trillion and real GDP was $32 trillion, what was the GDP deflator? -
ANS-87.5
Which of the following statements is true about point G for this economy? - ANS-there is unemployment
at point G
Which points are not currently attainable but could become achievable for this economy if there is an
improvement in technology? - ANS-J & K
Categories of U.S consumer spending, ranked from largest to smallest, are - ANS-housing, food and
beverages, education and communication and transportation
Which of the following principles is NOT one of the four principles of individual decision making? - ANS-
trade can make everyone better off
Economics deals primarily with the concept of - ANS-scarcity
Grapes are considered intermediate goods - ANS-if the purchaser uses them to make wine to sell others
but not if the purchaser eats them
A shift of the economy's production possibilities frontier from Panel (a) to Panel (b) could be caused by -
ANS-an improvement in donuts production technology
The movement from point M to point K could be caused by - ANS-unemployement
, GDP is not a perfect measure of well being for example - ANS-all of the above are correct
The field of economics is traditionally divided into two broads subfields - ANS-microecon and macroecon
trade makes costs - ANS-lower and raises the variety of goods and services available
Which of the following is an activity undertaken by the actors in rectangle 2? - ANS-own and sell factors
of productions
GDP is defined as - ANS-value of all final goods and services produced within a country in a given period
of time
the inflation rate is - ANS-GDP deflator is year 2 - GDP deflator in year 1 / GDP deflator in year 1 times
100
In communism, central planner decide which of the following? - ANS-all of the above are correct
Which of the following is included in the investment component of GDP? - ANS-John's law firm buys him
a new computer
In a considering how to allocate its scarce resources among its various members, a household considers
- ANS-all of the above
A rationale for government involvement in a market economy is - ANS-all of the above are correct
Market power refers to the - ANS-power of a single person or small group to influence market prices
In economics, the cost of something is - ANS-what you give up to get it
What was country A's investment in 2010? - ANS-1999
The production possibilities frontier is a graph that shows the various combinations of output that an
economy - ANS-should produce
Which of the following statements about GDP is correct - ANS-Nominal GDP values production at
current prices, whereas real GDP values production at constant prices.
The marginal benefits Susie gets from purchasing a third pair of gloves is - ANS-The total benefits she
gets from purchasing three pairs of gloves minus the total benefits she gets from purchasing two pairs of
gloves
trade - ANS-allows specialization which reduces cost
Macroeconomics is the study - ANS-economic-wide phenomena
Which of the following correctly list what is included in the consumption component of GDP? - ANS-
household purchases of services, non durable goods, and durable goods other than residential
construction
