ECON 104 Goffe Final real Exam
Questions with Verified solutions| instant
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Examining the conditions that could lead to a recession in an economy is an example
of a macroeconomics topic.
True
Every individual, no matter how rich or poor, is faced with making trade-offs.
True
When voluntary exchange takes place, only one party gains from the exchange.
False
A college must decide if it wants to offer more Internet-based classes. This decision
involves answering the economic question of "what to produce."
True
One desirable outcome of a market economy is that it leads to a more equitable
distribution of income.
False
An economic model is a simplified version of reality used to analyze real-world
economic situations.
True
The decisions Apple makes in determining production levels for its iPhone is an
example of a macroeconomics topic.
False
Economic resources are also called factors of production.
true
A curved line has slope values that change at every point.
,true
A straight line has a slope of zero.
false
If a country is producing efficiently and is on the production possibilities frontier, the
only way to produce more of one good is to produce less of the other.
false
If a country produces only two goods, then it is not possible to have a comparative
advantage in the production of both those goods.
true
Any output combination outside a production possibility frontier is associated with
unused or underutilized resources.
false
An increase in the labor force shifts the production possibility frontier inwards over
time.
false
If Sanjaya can shuck more oysters in one hour than Tatiana, then Sanjaya has a
comparative advantage in shucking oysters.
false
The basis for trade is comparative advantage, not absolute advantage.
True
In a two-good, two country world, if one country has an absolute advantage in the
production of both goods, it cannot benefit by trading with the other country.
false
For a person to have a comparative advantage in producing a product, she must be
able to produce that product at a lower opportunity cost than her competitors.
true
It is possible to have a comparative advantage in producing a good or service
without having an absolute advantage.
, true
An increase in the unemployment rate may be represented as a movement from a
point on the production possibilities frontier to a point inside the frontier.
true
The full-employment rate of unemployment is zero.
false
In general, economists rely more heavily on the establishment survey rather than the
household survey to evaluate the state of the labor market.
true
If Ethel sold her 2003 Ford Focus for $2,250 in 2017, the sale of her car contributed
$2,250 to 2017 GDP.
false
If an increase in residential burglaries results in households spending more money
on security systems, GDP will rise.
true
Consumption is negatively related to stock market wealth but positively related to
taxes and tax rates.
false
If aggregate expenditures rise unexpectedly, then inventories will also rise
unexpectedly.
false
Services are the most interest rate sensitive component of consumption.
false
Investment is the least cyclical component of aggregate expenditures.
true
The 'job-loss' recovery occurred following the 2001 recession.
true
Questions with Verified solutions| instant
pdf download
Examining the conditions that could lead to a recession in an economy is an example
of a macroeconomics topic.
True
Every individual, no matter how rich or poor, is faced with making trade-offs.
True
When voluntary exchange takes place, only one party gains from the exchange.
False
A college must decide if it wants to offer more Internet-based classes. This decision
involves answering the economic question of "what to produce."
True
One desirable outcome of a market economy is that it leads to a more equitable
distribution of income.
False
An economic model is a simplified version of reality used to analyze real-world
economic situations.
True
The decisions Apple makes in determining production levels for its iPhone is an
example of a macroeconomics topic.
False
Economic resources are also called factors of production.
true
A curved line has slope values that change at every point.
,true
A straight line has a slope of zero.
false
If a country is producing efficiently and is on the production possibilities frontier, the
only way to produce more of one good is to produce less of the other.
false
If a country produces only two goods, then it is not possible to have a comparative
advantage in the production of both those goods.
true
Any output combination outside a production possibility frontier is associated with
unused or underutilized resources.
false
An increase in the labor force shifts the production possibility frontier inwards over
time.
false
If Sanjaya can shuck more oysters in one hour than Tatiana, then Sanjaya has a
comparative advantage in shucking oysters.
false
The basis for trade is comparative advantage, not absolute advantage.
True
In a two-good, two country world, if one country has an absolute advantage in the
production of both goods, it cannot benefit by trading with the other country.
false
For a person to have a comparative advantage in producing a product, she must be
able to produce that product at a lower opportunity cost than her competitors.
true
It is possible to have a comparative advantage in producing a good or service
without having an absolute advantage.
, true
An increase in the unemployment rate may be represented as a movement from a
point on the production possibilities frontier to a point inside the frontier.
true
The full-employment rate of unemployment is zero.
false
In general, economists rely more heavily on the establishment survey rather than the
household survey to evaluate the state of the labor market.
true
If Ethel sold her 2003 Ford Focus for $2,250 in 2017, the sale of her car contributed
$2,250 to 2017 GDP.
false
If an increase in residential burglaries results in households spending more money
on security systems, GDP will rise.
true
Consumption is negatively related to stock market wealth but positively related to
taxes and tax rates.
false
If aggregate expenditures rise unexpectedly, then inventories will also rise
unexpectedly.
false
Services are the most interest rate sensitive component of consumption.
false
Investment is the least cyclical component of aggregate expenditures.
true
The 'job-loss' recovery occurred following the 2001 recession.
true
