ECON 104 FINAL EXAM QUESTIONS AND CORRECT ANSWERS|
ASSURED A+ PASS!
1. Since 1970 which of following most consistently rose in expansions and fell in recessions: - ANSWER
Number of employed
2. Which way would one move on our AD-SRAs graph if there was deflation and an expansion: -
ANSWER Down and Right
3. We described several reasons for recessions in the U.S. since WW2 two most common shift which
curves? - ANSWER AD SRAS
4. Thorough research on stocks enables investors to consistently outperform the stock market as whole:
- ANSWER False
5. Which occurred since the depths of covid recessions: - ANSWER AD shifted right more than SRAS
6. Which of following would be considered intermediate good: - ANSWER Electricity amazon purchases
7. If inflation rate rises what will happen to price level: - ANSWER Growing more quickly
8. Which of following most consistently rises in expansions and falls in recessions: - ANSWER Real GDP
9. Most common use of the rule of 70 is which of the following: - ANSWER To find how long it takes
something to double
10. Human capital improves in an economy in the long run. which of the following would grow as a
result: - ANSWER Y/L, Y/pop
11.Which of the following is most likely to be the largest in any country: - ANSWER Labor force
,12. Which of the following would decline the most as an economy recovered from a recession: -
ANSWER Cyclical unemployment
13. What would happen to potential gdp if a country increased the number of foreign workers inside its
border? - ANSWER Potential GDP would rise
14. What would happen to the U-3 if people who were not in the labor force suddenly start looking for a
job: - ANSWER It would rise
15. Which of the following will shift the SRAS curve to the right: - ANSWER Increase in technology
16.What is the impact of unexpected inflation on bond owners: - ANSWER It harms them
17. Which of the following is the best example of an institution: - ANSWER A judicial system that is
independent of government
18. Which if the following will shift the AD curve right: - ANSWER Decrease in taxes
19. In which situation would the fed most likely lower the fed fund interest rate: - ANSWER High
unemployment
20. Say you saw an economy with both rising real spending and rising prices across the economy. What's
the explanation? - ANSWER Decrease in federal funds rate
21. Which was least used during and after the covid recession to help the economy grow: - ANSWER Tax
Cuts
22. Which two are most similar in how they're calculated: - ANSWER Real prices with the division
method, real GDP
,23.. Which if the following is most likely of the fed buys bonds: - ANSWER AD shifts right through higher
consumption and investment
24. It is likely that a person in their 20s will receive ss benefits when retired: - ANSWER True
25.. Which of the following is the most important if a country wanted its economy to grow for many
years: - ANSWER Strong institutions
26. GDP deflator has about what value today: - ANSWER 125
27Making a decision "at the margin" involves comparing
A. additional benefits against additional costs.
B. total benefits against total costs, which include benefits and costs from past decisions.
C. sunk costs against opportunity costs.
D. All of these are true. - ANSWER A
28 A college student decides to spend the afternoon watching three movies rented from Red Box. The
cost of each movie is $1. The student was willing to pay $4 per movie to rent each of the first two movies
and $2 to rent the third movie. What was the marginal benefit received by the student when renting the
2nd movie?
A. $1
B. $8
C. $4
D. $2 - ANSWER C
29. Opportunity Cost:
A. only includes explicit, out of pocket expenses.
B. is the value of your next best alternative.
C. is never provided in dollar values.
D. would not include the wages lost from working when deciding to take a vacation. - ANSWER B
, 30. The demand for Good Z rises when income rises. It must be true that
A. the demand for Z is inelastic.
B. the demand for Z is elastic.
C. Z is a normal good.
D. Z is an inferior good. - ANSWER C
31. Which of the following would NOT shift the demand curve for a good or service?
A. a change in income.
B. a change in the price of a substitute.
C. a change in expectations about the price of the good or service.
D. a change in the price of the good or service. - ANSWER D
32. If, at the current price, there is excess demand for a good,
A. the price is below the equilibrium price.
B. the market can be in equilibrium.
C. sellers are producing more than buyers wish to buy.
D. supply is perfectly inelastic. - ANSWER A
33.A change in a non price factor of demand will cause:
A. a movement along the demand curve.
B. a shift of the demand curve.
C. the demand curve to rotate inward.
D. the demand curve to rotate outward. - ANSWER B
34.An increase in the price of foreign cars is likely to cause:
A. the demand for domestic cars to increase.
B. the demand for domestic cars to decrease
C. the demand for foreign cars to increase.
ASSURED A+ PASS!
1. Since 1970 which of following most consistently rose in expansions and fell in recessions: - ANSWER
Number of employed
2. Which way would one move on our AD-SRAs graph if there was deflation and an expansion: -
ANSWER Down and Right
3. We described several reasons for recessions in the U.S. since WW2 two most common shift which
curves? - ANSWER AD SRAS
4. Thorough research on stocks enables investors to consistently outperform the stock market as whole:
- ANSWER False
5. Which occurred since the depths of covid recessions: - ANSWER AD shifted right more than SRAS
6. Which of following would be considered intermediate good: - ANSWER Electricity amazon purchases
7. If inflation rate rises what will happen to price level: - ANSWER Growing more quickly
8. Which of following most consistently rises in expansions and falls in recessions: - ANSWER Real GDP
9. Most common use of the rule of 70 is which of the following: - ANSWER To find how long it takes
something to double
10. Human capital improves in an economy in the long run. which of the following would grow as a
result: - ANSWER Y/L, Y/pop
11.Which of the following is most likely to be the largest in any country: - ANSWER Labor force
,12. Which of the following would decline the most as an economy recovered from a recession: -
ANSWER Cyclical unemployment
13. What would happen to potential gdp if a country increased the number of foreign workers inside its
border? - ANSWER Potential GDP would rise
14. What would happen to the U-3 if people who were not in the labor force suddenly start looking for a
job: - ANSWER It would rise
15. Which of the following will shift the SRAS curve to the right: - ANSWER Increase in technology
16.What is the impact of unexpected inflation on bond owners: - ANSWER It harms them
17. Which of the following is the best example of an institution: - ANSWER A judicial system that is
independent of government
18. Which if the following will shift the AD curve right: - ANSWER Decrease in taxes
19. In which situation would the fed most likely lower the fed fund interest rate: - ANSWER High
unemployment
20. Say you saw an economy with both rising real spending and rising prices across the economy. What's
the explanation? - ANSWER Decrease in federal funds rate
21. Which was least used during and after the covid recession to help the economy grow: - ANSWER Tax
Cuts
22. Which two are most similar in how they're calculated: - ANSWER Real prices with the division
method, real GDP
,23.. Which if the following is most likely of the fed buys bonds: - ANSWER AD shifts right through higher
consumption and investment
24. It is likely that a person in their 20s will receive ss benefits when retired: - ANSWER True
25.. Which of the following is the most important if a country wanted its economy to grow for many
years: - ANSWER Strong institutions
26. GDP deflator has about what value today: - ANSWER 125
27Making a decision "at the margin" involves comparing
A. additional benefits against additional costs.
B. total benefits against total costs, which include benefits and costs from past decisions.
C. sunk costs against opportunity costs.
D. All of these are true. - ANSWER A
28 A college student decides to spend the afternoon watching three movies rented from Red Box. The
cost of each movie is $1. The student was willing to pay $4 per movie to rent each of the first two movies
and $2 to rent the third movie. What was the marginal benefit received by the student when renting the
2nd movie?
A. $1
B. $8
C. $4
D. $2 - ANSWER C
29. Opportunity Cost:
A. only includes explicit, out of pocket expenses.
B. is the value of your next best alternative.
C. is never provided in dollar values.
D. would not include the wages lost from working when deciding to take a vacation. - ANSWER B
, 30. The demand for Good Z rises when income rises. It must be true that
A. the demand for Z is inelastic.
B. the demand for Z is elastic.
C. Z is a normal good.
D. Z is an inferior good. - ANSWER C
31. Which of the following would NOT shift the demand curve for a good or service?
A. a change in income.
B. a change in the price of a substitute.
C. a change in expectations about the price of the good or service.
D. a change in the price of the good or service. - ANSWER D
32. If, at the current price, there is excess demand for a good,
A. the price is below the equilibrium price.
B. the market can be in equilibrium.
C. sellers are producing more than buyers wish to buy.
D. supply is perfectly inelastic. - ANSWER A
33.A change in a non price factor of demand will cause:
A. a movement along the demand curve.
B. a shift of the demand curve.
C. the demand curve to rotate inward.
D. the demand curve to rotate outward. - ANSWER B
34.An increase in the price of foreign cars is likely to cause:
A. the demand for domestic cars to increase.
B. the demand for domestic cars to decrease
C. the demand for foreign cars to increase.
