ECN 211 FINAL (EXAMS 1, 2, 3) ASU DOUGLAS QUESTIONS AND CORRECT ANSWERS

ECN 211 FINAL (EXAMS 1, 2, 3) ASU
DOUGLAS QUESTIONS AND
CORRECT ANSWERS
WhichA2ofA2theA2followingA2isA2includedA2inA2GDP?
A.A2recreationalA2marijuanaA2purchasedA2fromA2aA2drugA2dealerA2byA2aA2collegeA2student
?
B.A2RecreationalA2marijuanaA2purchasedA2andA2consumberA2byA2aA2manA2inA2hisA2attic.
C.A2medicalA2marijuanaA2purchasedA2fromA2aA2government-
runA2pharmacyA2byA2aA2glaucomaA2patient.
D.A2AllA2ofA2theA2aboveA2-A2Ans--
C.A2medicalA2marijuanaA2purchasedA2fromA2aA2government-
runA2pharmacyA2byA2aA2glaucomaA2patient.

youA2knowA2aA2candyA2barA2costA2fiveA2centsA2inA21962.A2YouA2alsoA2knowA2theA2CPIA2forA
21962A2andA2theA2CPIA2today.A2WhichA2ofA2theA2followingA2wouldA2youA2useA2toA2compute
A2theA2price?
A.A2fiveA2centsA2*A2today'sA2CPI-A2fiveA2centsA2*A2CPIA2inA21962
B.FiveA2centsA2*(1962A2CPI/A2Today'sA2CPI)
C.A2fiveA2centsA2*A2(Today'sA2CPI/A21962A2CPI)
D.A2fiveA2centsA2*A2(today'sA2CPIA2-A21962A2CPI)/1962A2CPIA2-A2Ans--
C.A2fiveA2centsA2*A2(Today'sA2CPI/A21962A2CPI)

DiscouragedA2workersA2areA2includedA2in...
A.A2FrictionalA2Unemployment
B.TheA2numberA2ofA2unemployed
C.A2theA2laborA2force
D.A2noneA2ofA2theA2aboveA2-A2Ans--D.A2noneA2ofA2theA2above

whenA2aA2countryA2hasA2aA2comparativeA2advantageA2inA2producingA2aA2certainA2good,A2
A.A2TheA2countryA2shouldA2produceA2justA2enoughA2ofA2thatA2goodA2forA2itsA2ownA2consum
ption.
B.A2theA2countryA2shouldA2importA2thatA2good.
C.A2TheA2country'sA2opportunityA2costA2ofA2thatA2goodA2isA2highA2relativeA2toA2otherA2count
ries'A2opportunityA2costsA2ofA2theA2sameA2good.
D.A2NoneA2ofA2theA2aboveA2-A2Ans--D.A2NoneA2ofA2theA2above

TheA2unemploymentA2rateA2isA2computedA2asA2theA2numberA2ofA2unemployed
A.A2timesA2theA2labor-forceA2participationA2rate,A2allA2timesA2100.
B.A2dividedA2byA2theA2adultA2population,A2allA2timesA2100
C.A2dividedA2byA2theA2numberA2ofA2employed,A2allA2timesA2100

, D.A2DividedA2byA2theA2laborA2force,A2allA2timesA2100.A2-A2Ans--
C.A2dividedA2byA2theA2numberA2ofA2employed,A2allA2timesA2100

InA2theA2economyA2ofA2TalikastanA2inA22015,A2exportsA2wereA2$500,A2GDPA2wasA2$6400,A
2GovernmentA2PurchasesA2wereA2$1700,A2ImportsA2wereA2$400,A2andA2investmentA2wasA
2$1800.A2WhatA2wasA2Talikastan'sA2consumptionA2inA22015?
A.A2$2000
B.A2$3800
C.A2$2800
D.A2$3000A2-A2Ans--A.A2$2000

Sheri,A2aA2U.S.A2Citizen,A2worksA2onlyA2inA2Germany.A2TheA2valueA2sheA2addsA2toA2theA2p
roductionA2inA2GermanyA2isA2included..
A.A2inA2GermanA2GDP,A2butA2isA2notA2includedA2inA2U.S.A2GDP
B.A2inA2U.S.A2GDP,A2butA2isA2notA2includedA2inA2GermanA2GDP
C.A2inA2bothA2GermanA2GDPA2andA2U.S.A2GDP.
D.A2inA2neitherA2GermanA2GDPA2norA2U.S.A2GDP.A2-A2Ans--
A.A2inA2GermanA2GDP,A2butA2isA2notA2includedA2inA2U.S.A2GDP

TransferA2paymentsA2are:
A.A2notA2includedA2inA2GDPA2becauseA2theyA2areA2notA2paymentsA2forA2currentlyA2produc
edA2goodsA2orA2services.
B.A2IncludedA2inA2GDPA2becauseA2theyA2eventuallyA2willA2beA2spentA2onA2consumption.
C.A2IncludedA2inA2GDPA2becauseA2theyA2representA2incomeA2toA2individuals.
D.A2notA2includedA2inA2GDPA2becauseA2taxesA2willA2haveA2toA2beA2raisedA2toA2payA2forA2th
em.A2-A2Ans--
A.A2notA2includedA2inA2GDPA2becauseA2theyA2areA2notA2paymentsA2forA2currentlyA2produc
edA2goodsA2orA2services.

CyclicalA2unemploymentA2refersA2to
A.A2ChangesA2inA2unemploymentA2dueA2toA2changesA2inA2naturalA2rateA2ofA2unemployme
nt.
B.A2TheA2portionA2ofA2unemploymentA2createdA2byA2jobA2search.
C.A2TheA2portionA2ofA2unemploymentA2createdA2byA2wagesA2setA2aboveA2theA2equilibriumA
2level.
D.A2short-runA2fluctuationsA2aroundA2theA2naturalA2rateA2ofA2unemployment.A2-A2Ans--
D.A2short-runA2fluctuationsA2aroundA2theA2naturalA2rateA2ofA2unemployment.

TheA2CPIA2isA2moreA2commonlyA2usedA2asA2aA2gaugeA2ofA2inflationA2thanA2theA2GDPA2defl
atorA2isA2because
A.A2theA2GDPA2inflatorA2cannotA2beA2usedA2toA2gaugeA2inflation.
B.A2theA2CPIA2isA2calculatedA2moreA2oftenA2thanA2theA2GDPA2deflatorA2isA2
C.A2theA2CPIA2isA2easierA2toA2measure
D.A2theA2CPIA2betterA2reflectsA2theA2goodA2andA2servicesA2boughtA2byA2consumers.A2-
A2Ans--
D.A2theA2CPIA2betterA2reflectsA2theA2goodA2andA2servicesA2boughtA2byA2consumers.