ECON 200 UOFA EXAM 3 -
COMPLETE QUESTIONS AND DETAILED SOLUTIONS
LATEST UPDATE THIS YEAR JUST RELEASED
Question 1: Which of these solutions is the BEST way to avoid the
buildup of debt?
A) Match the growth of the money supply to the long-run growth of the
economy
B) Balance the budget over the course of the business cycle
C) The Federal Reserve creates hyperinflation to make the debt
worthless
D) Give the President a line item veto on everything Congress passes
Answer:
Balance the budget over the course of the business cycle
Question 2: The US National Debt is approximately
A) 180 million dollars
B) 1.8 billion dollars
C) 18 trillion dollars
D) 180 quadrillion dollars
Answer:
18 trillion dollars
Question 3: By 2030, how many workers will there be to support
each Social Security recipient?
A) 12
B) 6
, C) 2
D) 20
Answer:
2
Question 4: Countries that engage in trade will tend to specialize in
the production of goods and services in which they have ________
and will ________ these goods and services
A) a comparative advantage; import
B) an absolute advantage; export
C) a comparative advantage; export
D) an absolute advantage; import
Answer:
a comparative advantage; export
Question 5: Which of the following statements is true?
A) All individuals in both countries are made better off as a result of
international trade.
B) Within each country, some individuals are made better off as a
result of international trade, but one of the countries will be worse off
overall.
C) Although some individuals are made better off as a result of
international trade, both countries may be made worse off overall.
D) Each country as a whole is made better off as a result of
international trade, but individuals within each country may be made
worse off.
Answer:
D) Each country as a whole is made better off as a result of international
trade, but individuals within each country may be made worse off.
, Question 6: Which of these is an argument used to restrict foreign
trade?
A) Large US corporations need protection from multinational firms
B) Infant-industries need to be protected until they can compete
globally
C) Our education system should be exclusively for US citizens
D) The US infrastructure (roads, bridges, and railroads) are crumbling
and cannot handle a large influx of imports
Answer:
Infant-industries need to be protected until they can compete globally
Question 7: The unemployment rate reported by the media is
known as U-3. Broader measures of unemployment include people
who are marginal connected to the workforce. Those broader
measures indicate that the true level of unemployment and
underemployment is close to
A) 5%.
B) 20%.
C) 10%.
Answer:
20%
Question 8: In developed countries if you want to shift the labor
productivity curve up you need to
A) use more technology
B) use more capital
C) hire more workers
Answer:
COMPLETE QUESTIONS AND DETAILED SOLUTIONS
LATEST UPDATE THIS YEAR JUST RELEASED
Question 1: Which of these solutions is the BEST way to avoid the
buildup of debt?
A) Match the growth of the money supply to the long-run growth of the
economy
B) Balance the budget over the course of the business cycle
C) The Federal Reserve creates hyperinflation to make the debt
worthless
D) Give the President a line item veto on everything Congress passes
Answer:
Balance the budget over the course of the business cycle
Question 2: The US National Debt is approximately
A) 180 million dollars
B) 1.8 billion dollars
C) 18 trillion dollars
D) 180 quadrillion dollars
Answer:
18 trillion dollars
Question 3: By 2030, how many workers will there be to support
each Social Security recipient?
A) 12
B) 6
, C) 2
D) 20
Answer:
2
Question 4: Countries that engage in trade will tend to specialize in
the production of goods and services in which they have ________
and will ________ these goods and services
A) a comparative advantage; import
B) an absolute advantage; export
C) a comparative advantage; export
D) an absolute advantage; import
Answer:
a comparative advantage; export
Question 5: Which of the following statements is true?
A) All individuals in both countries are made better off as a result of
international trade.
B) Within each country, some individuals are made better off as a
result of international trade, but one of the countries will be worse off
overall.
C) Although some individuals are made better off as a result of
international trade, both countries may be made worse off overall.
D) Each country as a whole is made better off as a result of
international trade, but individuals within each country may be made
worse off.
Answer:
D) Each country as a whole is made better off as a result of international
trade, but individuals within each country may be made worse off.
, Question 6: Which of these is an argument used to restrict foreign
trade?
A) Large US corporations need protection from multinational firms
B) Infant-industries need to be protected until they can compete
globally
C) Our education system should be exclusively for US citizens
D) The US infrastructure (roads, bridges, and railroads) are crumbling
and cannot handle a large influx of imports
Answer:
Infant-industries need to be protected until they can compete globally
Question 7: The unemployment rate reported by the media is
known as U-3. Broader measures of unemployment include people
who are marginal connected to the workforce. Those broader
measures indicate that the true level of unemployment and
underemployment is close to
A) 5%.
B) 20%.
C) 10%.
Answer:
20%
Question 8: In developed countries if you want to shift the labor
productivity curve up you need to
A) use more technology
B) use more capital
C) hire more workers
Answer:
