Quiz 1 ECON 102/ ECON102 Questions and Answers | Spring 26 - Attempt Score 90 / 100. Week 2 - Quiz 1 - Results Attempt 1 of 2 2026 Attempt Score 90 / 100 - 90 % Overall Grade (Highest Attempt) 90 / 100 - 90 % Questions for Quiz 1 (Weeks 1 & 2) Qu

Quiz 1 ECON 102/ ECON102 Questions and Answers | Spring 26 - Attempt Score 90 / 100. Week 2 - Quiz 1 - Results Attempt 1 of 2 2026 Attempt Score 90 / 100 - 90 % Overall Grade (Highest Attempt) 90 / 100 - 90 % Questions for Quiz 1 (Weeks 1 & 2) Question 1 5 / 5 points A trade surplus occurs when Question options: foreign firms open more stores in a country than the country opens in foreign coun a country's firms open more stores abroad than foreign firms open in the country. a country sells more abroad than it purchases from abroad. a country purchases more from abroad than other countries purchase from it. Question 2 5 / 5 points Which sector contributes to GDP through government spending? Question options: Investments by private companies Consumer spending on goods and services Net exports of a country Purchases of goods and services by public institutionsQuestion 3 5 / 5 points A firm's value added can be measured as the value of its Question options: profits. total sales, less purchases from other firms. purchases of inputs from other firms. total sales. Question 4 0 / 5 points Which of the following would lead to an increase in demand for a product? Question options: An increase in the price of complementary goods. A decrease in consumer incomes. An increase in production costs for the product. A successful advertising campaign for the product. Question 5 5 / 5 points Gross domestic product calculations count only final goods and services because Question options: one cannot calculate the quantities of intermediate goods produced. it is difficult to measure the prices of intermediate goods ing all goods and services would lead to double counting of many activities. they are the only goods and services that are purchased in an economy. Question 6 5 / 5 points Depreciation is Question options: what is left over from total new private investment after use for a year. the total number of private investment purchases, whether new or previously existi the total number of new private investment purchases. the wear and tear on private investment. Question 7 5 / 5 points Transfer payments are excluded from government purchases in GDP accounting because Question options: they are difficult to measure. nothing is being produced in return for the payment. they are already included as part of the investment. they are a reward to individuals who have been productive their entire lives. Question 8 0 / 5 points Economics is best defined as the study of Question options: how consumers make purchasing cial decision-making. inflation, unemployment, and economic growth. choices made by people faced with scarcity. Question 9 5 / 5 points How does a contractionary monetary policy typically affect businesses? Question options: It increases demand for goods and services by reducing interest rates. It reduces borrowing costs for businesses. It encourages higher government spending, boosting business activity. It raises interest rates, reducing business investments and consumer spending. Question 10 5 / 5 points Which of the following is a key focus area of microeconomics? Question options: The GDP growth rate of a nation The effects of monetary policy on interest rates The unemployment rate of a country The pricing strategy of a specific industry Question 11 5 / 5 points Which of the following is an example of a fiscal policy action?Question options: Increasing government spending on infrastructure projects. Conducting open-market operations. Reducing the reserve requirement for banks. Adjusting the federal funds rate. Question 12 5 / 5 points Which of the following is included in the calculation of GDP? Question options: Household chores performed by family members The sale of used goods Financial transactions, such as stock trading The production of new machinery for factories Question 13 5 / 5 points GDP understates the value of output produced by an economy because it Question options: includes environmental degradation caused by increased output production. excludes the value of the wages and benefits of government employees. includes transactions that do not take place in organized markets, such as home-co excludes value added from the underground economy, such as tips taken "under theQuestion 14 5 / 5 points How does a decrease in GDP typically affect businesses during a contraction in the business cycle? Question options: Businesses experience increased demand for goods and services, boosting profitability. Businesses reduce prices due to inflation, increasing sales volumes. Businesses see stable profitability as GDP changes do not impact them directly. Businesses face lower demand for goods and services, leading to reduced profits and potential layoffs. Question 15 5 / 5 points Gross investment is Question options: what is left over from total new private investment after depreciation. the total number of private investment purchases, whether new or previously existi the wear and tear on private investment. the total number of new private investment purchases. Question 16 5 / 5 points An increase in GDP during an economic expansion typically results in: Question options: Stabilization of the business cycle, eliminating the risk of future recessions. Higher business revenues and increased investments due to rising consumer spendReduced business profitability as costs rise faster than revenues. A decrease in demand for goods and services as unemployment rises. Question 17 5 / 5 points If supply decreases and demand remains unchanged, what is the likely effect on equilibrium price? Question options: It will decrease. It will increase. It will remain unchanged. It will fluctuate unpredictably. Question 18 5 / 5 points Which of the following topics is primarily studied in macroeconomics? Question options: The production decisions of a single factory The pricing strategy of a single firm The elasticity of demand for a particular product The effects of inflation on a nation's economy Question 19 5 / 5 points One of the flaws of GDP is that it Question options: includes measures of the underground des measures of changes of quality of life associated with producing output. ignores transactions that do not take place in organized markets. includes only transactions that take place in formal businesses. Question 20 5 / 5 points Macroeconomics differs from microeconomics in that Question options: microeconomics is the study of individual markets, while macroeconomics deals with the nation's economy as a whole. macroeconomics is the study of individual markets, while microeconomics deals with the nation's economy as a whole. macroeconomics focuses principally on social and political issues, while microeconomics involves the study of a nation's monetary system. microeconomics focuses principally on social and political issues, while macroeconomics involves the study of a nation's monetary system.