Page 1 of 88
Econ 200 UOFA Final Exam ALL 300
QUESTIONS AND CORRECT ANSWERS
LATEST UPDATE THIS YEAR
UOFA ECON 200 FINAL EXAM
QUESTION: Which of the following would NOT encourage more rapid growth?
A) A better education system.
B) A more equal distribution on income
C) A low and stable and inflation rate
D) Competitive markets - ANSWER-A more equal distribution on income
QUESTION: The statement, "An ice cream sandwich costs $1.00" represents money's function
as
A) a medium of exchange.
B) a unit of account.
C) a store of value.
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D) a standard of deferred payment. - ANSWER-A unit of account
QUESTION: Dollar bills in the modern economy serve as money because
A) they are backed by the gold stored in Fort Knox.
B) they can be redeemed for gold by the central bank.
C) they have value as a commodity independent of their use as money.
D) people have confidence that others will accept them as money. - ANSWER-people have
confidence that others will accept them as money.
QUESTION: The current chair of the Board of Governors of the Federal Reserve is
A) Alan Greenspan.
B) Janet Yellen.
C) Ben Bernanke.
D) Barack Obama. - ANSWER-Janet Yellen.
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QUESTION: Which of the following are NOT one of the Federal Reserve System's four monetary
policy goals?
A) price stability
B) high employment
C) constant GDP
D) stability of financial markets and institutions - ANSWER-constant GDP
QUESTION: While many analysts defended the actions taken by the Fed and the Treasury to
respond to the financial crisis in 2008, others were critical of these actions. The critics were
concerned that by not allowing large firms to fail that there is an increased likelihood that other
firms will engage in risky behavior in the future with the expectation that they will also not be
allowed to fail. This undesirable change in firm behavior is known as
A) adverse selection
B) moral hazard
C) quantitative easing
D) open market operations - ANSWER-moral hazard
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QUESTION: If the economy is falling below potential real GDP, which of the following would be
an appropriate fiscal policy to bring the economy back to long-run aggregate supply? A) the
money supply and a decrease in interest rates.
B) government purchases.
C) oil prices.
D) taxes. - ANSWER-government purchases
QUESTION: Crowding out refers to a decline in ________ as a result of an increase in ________
A) tax revenues; unemployment
B) government purchases; tax rates
C) government purchases; private expenditures
D) private expenditures; government purchases - ANSWER-private expenditures; government
purchases
Q;How is GDP measured?A) GDP is measured by adding the quantities of goods and services
produced in a given year.
B) GDP is measured by adding up all the intermediate sales throughout the year.
C) GDP is measured using stock market values, or stock prices.
4
Econ 200 UOFA Final Exam ALL 300
QUESTIONS AND CORRECT ANSWERS
LATEST UPDATE THIS YEAR
UOFA ECON 200 FINAL EXAM
QUESTION: Which of the following would NOT encourage more rapid growth?
A) A better education system.
B) A more equal distribution on income
C) A low and stable and inflation rate
D) Competitive markets - ANSWER-A more equal distribution on income
QUESTION: The statement, "An ice cream sandwich costs $1.00" represents money's function
as
A) a medium of exchange.
B) a unit of account.
C) a store of value.
1
, Page 2 of 88
D) a standard of deferred payment. - ANSWER-A unit of account
QUESTION: Dollar bills in the modern economy serve as money because
A) they are backed by the gold stored in Fort Knox.
B) they can be redeemed for gold by the central bank.
C) they have value as a commodity independent of their use as money.
D) people have confidence that others will accept them as money. - ANSWER-people have
confidence that others will accept them as money.
QUESTION: The current chair of the Board of Governors of the Federal Reserve is
A) Alan Greenspan.
B) Janet Yellen.
C) Ben Bernanke.
D) Barack Obama. - ANSWER-Janet Yellen.
2
, Page 3 of 88
QUESTION: Which of the following are NOT one of the Federal Reserve System's four monetary
policy goals?
A) price stability
B) high employment
C) constant GDP
D) stability of financial markets and institutions - ANSWER-constant GDP
QUESTION: While many analysts defended the actions taken by the Fed and the Treasury to
respond to the financial crisis in 2008, others were critical of these actions. The critics were
concerned that by not allowing large firms to fail that there is an increased likelihood that other
firms will engage in risky behavior in the future with the expectation that they will also not be
allowed to fail. This undesirable change in firm behavior is known as
A) adverse selection
B) moral hazard
C) quantitative easing
D) open market operations - ANSWER-moral hazard
3
, Page 4 of 88
QUESTION: If the economy is falling below potential real GDP, which of the following would be
an appropriate fiscal policy to bring the economy back to long-run aggregate supply? A) the
money supply and a decrease in interest rates.
B) government purchases.
C) oil prices.
D) taxes. - ANSWER-government purchases
QUESTION: Crowding out refers to a decline in ________ as a result of an increase in ________
A) tax revenues; unemployment
B) government purchases; tax rates
C) government purchases; private expenditures
D) private expenditures; government purchases - ANSWER-private expenditures; government
purchases
Q;How is GDP measured?A) GDP is measured by adding the quantities of goods and services
produced in a given year.
B) GDP is measured by adding up all the intermediate sales throughout the year.
C) GDP is measured using stock market values, or stock prices.
4
