Econ exam Correct Questions And
Answers
Macroeconomics studies economy-wide phenomena, including inflation, unemployment,
and economic growth. Correct Answers true
When the price of hamburgers increases, the demand curve for hamburgers shifts to
the left. Correct Answers false
If pasta is an inferior good, then the demand curve for pasta shifts to the ________
when ________ rises. Correct Answers left; consumers' income
Consider the market for pizza in Starkville. Which of the following will shift the demand
curve for pizza to the right? Correct Answers an increase in the price of hamburgers, a
substitute for pizza
Movie tickets and film streaming services are substitutes. If the price of film streaming
increases, what happens in the market for movie tickets? Correct Answers The demand
curve shifts to the right
When the price of a good is higher than the equilibrium price, Correct Answers sellers
desire to produce and sell more than buyers wish to purchase.
Suppose that the price of basketball tickets is determined by market forces. Currently,
the demand and supply schedules are as follows. What is the equilibrium price of
basketball tickets?
Price. Quantity Demanded. Quantity Supplied.
$4. 10,000 tickets. 8,000 tickets. $8. 8,000 tickets. 8,000 tickets. $12. 6,000 tickets.
8,000 tickets. $16. 4,000 tickets. 8,000 tickets Correct Answers $8
If the economy goes into a recession and incomes fall, what happens in the market for
inferior goods? Correct Answers Prices and quantities both rise
If an economy's GDP falls, then it must be the case that the economy's Correct Answers
income and expenditure both fall.
Gross domestic product adds together many different kinds of goods and services into a
single measure of the value of economic activity. To do this, GDP makes use of Correct
Answers market prices.
If you buy a burger at your favorite fast food restaurant, Correct Answers then both GDP
and consumption spending will be higher.
, A Texas household purchased a $460 television which is made in Korea by a Korean
firm and a $40 dinner at a local restaurant. As a result, U.S. GDP Correct Answers
increases by $40.
A steel company sells some steel to a bicycle company for $150. The bicycle company
uses the steel to produce a bicycle, which it sells for $250. Taken together, these two
transactions contribute Correct Answers $250 to GDP.
A U.S. firm produces sweatshirts in the first quarter of 2010 and adds them to its
inventory. In the second quarter of 2010 the firm sells the sweatshirts to consumers. In
which quarter(s) does(do) these transactions raise investment? Correct Answers the
first but not the second
An economy produces 10 cookies in year 1 at a price of $2 per cookie and 12 cookies in
year 2 at a price of $3 per cookie. From year 1 to year 2, real GDP increases by Correct
Answers 20 percent
After graduation, an American college student moves to Japan to teach English. Her
salary is included Correct Answers only in Japan's GDP
GDP is an imperfect measure of well-being because it Correct Answers ignores the
environmental degradation from economic activity
For the purpose of calculating GDP, investment is spending on real estate and financial
assets such as stocks and bonds. Correct Answers false
A country produces only hot dogs and hamburgers. Quantities and prices of these
goods for the last several years are shown below in the following table. The country's
nominal GDP in 2019 is $1,500.
Year
Price of Hot Dogs
Quantity of Hot Dogs
Price of Hamburgers
Quantity ofHamburgers
2018
$3
100
$5
50
2019
$4
150
$6
100
2020
$5
Answers
Macroeconomics studies economy-wide phenomena, including inflation, unemployment,
and economic growth. Correct Answers true
When the price of hamburgers increases, the demand curve for hamburgers shifts to
the left. Correct Answers false
If pasta is an inferior good, then the demand curve for pasta shifts to the ________
when ________ rises. Correct Answers left; consumers' income
Consider the market for pizza in Starkville. Which of the following will shift the demand
curve for pizza to the right? Correct Answers an increase in the price of hamburgers, a
substitute for pizza
Movie tickets and film streaming services are substitutes. If the price of film streaming
increases, what happens in the market for movie tickets? Correct Answers The demand
curve shifts to the right
When the price of a good is higher than the equilibrium price, Correct Answers sellers
desire to produce and sell more than buyers wish to purchase.
Suppose that the price of basketball tickets is determined by market forces. Currently,
the demand and supply schedules are as follows. What is the equilibrium price of
basketball tickets?
Price. Quantity Demanded. Quantity Supplied.
$4. 10,000 tickets. 8,000 tickets. $8. 8,000 tickets. 8,000 tickets. $12. 6,000 tickets.
8,000 tickets. $16. 4,000 tickets. 8,000 tickets Correct Answers $8
If the economy goes into a recession and incomes fall, what happens in the market for
inferior goods? Correct Answers Prices and quantities both rise
If an economy's GDP falls, then it must be the case that the economy's Correct Answers
income and expenditure both fall.
Gross domestic product adds together many different kinds of goods and services into a
single measure of the value of economic activity. To do this, GDP makes use of Correct
Answers market prices.
If you buy a burger at your favorite fast food restaurant, Correct Answers then both GDP
and consumption spending will be higher.
, A Texas household purchased a $460 television which is made in Korea by a Korean
firm and a $40 dinner at a local restaurant. As a result, U.S. GDP Correct Answers
increases by $40.
A steel company sells some steel to a bicycle company for $150. The bicycle company
uses the steel to produce a bicycle, which it sells for $250. Taken together, these two
transactions contribute Correct Answers $250 to GDP.
A U.S. firm produces sweatshirts in the first quarter of 2010 and adds them to its
inventory. In the second quarter of 2010 the firm sells the sweatshirts to consumers. In
which quarter(s) does(do) these transactions raise investment? Correct Answers the
first but not the second
An economy produces 10 cookies in year 1 at a price of $2 per cookie and 12 cookies in
year 2 at a price of $3 per cookie. From year 1 to year 2, real GDP increases by Correct
Answers 20 percent
After graduation, an American college student moves to Japan to teach English. Her
salary is included Correct Answers only in Japan's GDP
GDP is an imperfect measure of well-being because it Correct Answers ignores the
environmental degradation from economic activity
For the purpose of calculating GDP, investment is spending on real estate and financial
assets such as stocks and bonds. Correct Answers false
A country produces only hot dogs and hamburgers. Quantities and prices of these
goods for the last several years are shown below in the following table. The country's
nominal GDP in 2019 is $1,500.
Year
Price of Hot Dogs
Quantity of Hot Dogs
Price of Hamburgers
Quantity ofHamburgers
2018
$3
100
$5
50
2019
$4
150
$6
100
2020
$5
