Econ 330 Mcgann Final Exam Questions & Correct Answers.
Which of the following is most accurate regarding the aftermath of the industrial revolution
of the 18th and 19th century?
A) Abject poverty has been eliminated in most of the western world but still exists in
northern Europe and Japan.
B) The ratio of global GDP produced by the Asian countries has shrunk relative to the west.
C) Africa has experienced the greatest increase in per capita GDP due to their higher
population relative to other areas of the world.
D) While countries like the US and those of Western Europe have grown dramatically,
subsistence living has remained the norm throughout the rest of the world. - Correct
Answer B) The ratio of global GDP produced by the Asian countries has shrunk relative to
the west.
Which of the following would be the best indicator for comparing the standard of living
across different countries?
A) GDP
B) Per Capita GDP
C) Longevity statistics
D) GDP growth rate - Correct Answer B) Per Capita GDP
In his essay "The End of History" Francis Fukuyama contents:
A) Western civilization will end as the result of a violent war of culture
B) Communism will end by 2050 ushering in a new era of western liberalism
C) Islam poses the greatest threat to our national identity and represents the "end of
history" as secular and unbiased
D) Capitalism represents the superior economic system that proved its viability upon the
end of the Soviet Empire in the late 20th century - Correct Answer D) Capitalism
represents the superior economic system that proved its viability upon the end of the
Soviet Empire in the late 20th century
The Great Moderation refers to:
A) The thousands of years that man has strived to improve economic performance and
escape subsistence living
, B) The period of the late 20th early 21st centuries that represent decreasing government
involvement in many western countries and greater stability in economic performance
C) The period of the late 20th and early 21st centuries that represents increasing
government involvement in many western countries and greater stability in economic
performance
D) A period from approximately 1980-2007 when political leaders in the U.K., U.S., and
Germany shift away from decades of fascist leadership to form a "Great Moderation"
toward democracy - Correct Answer B) The period of the late 20th early 21st centuries that
represent decreasing government involvement in many western countries and greater
stability in economic performance
Politically, which of the following countries identify as Marxist/Communist?
A) Cuba
B) North Korea
C) China
D) All of the above - Correct Answer D) All of the above
The principal-agent problem is best exemplified by which of the following scenarios?
A) A stockholder that owns shares of Apple invests in Microsoft and does not inform the
board of directors
B) A babysitter on duty invites her boyfriend over without telling the parents employing her
C) An insurance agent earns a commision by selling an insurance policy to a client
D) A member of the board of directors of a major corporation votes to lower the pay of the
acting CEO - Correct Answer B) A babysitter on duty invites her boyfriend over without
telling the parents employing her
In a planned economy which of the following is most likely to occur if there is a shortage of a
product?
A) Higher prices for the product
B) Lower prices for the product
C) Long-waiting lines for the product
D) Inflation - Correct Answer C) Long-waiting lines for the product
Which type of incentive is most likely to be used in a planned economy?
A) Material
B) Punitive
Which of the following is most accurate regarding the aftermath of the industrial revolution
of the 18th and 19th century?
A) Abject poverty has been eliminated in most of the western world but still exists in
northern Europe and Japan.
B) The ratio of global GDP produced by the Asian countries has shrunk relative to the west.
C) Africa has experienced the greatest increase in per capita GDP due to their higher
population relative to other areas of the world.
D) While countries like the US and those of Western Europe have grown dramatically,
subsistence living has remained the norm throughout the rest of the world. - Correct
Answer B) The ratio of global GDP produced by the Asian countries has shrunk relative to
the west.
Which of the following would be the best indicator for comparing the standard of living
across different countries?
A) GDP
B) Per Capita GDP
C) Longevity statistics
D) GDP growth rate - Correct Answer B) Per Capita GDP
In his essay "The End of History" Francis Fukuyama contents:
A) Western civilization will end as the result of a violent war of culture
B) Communism will end by 2050 ushering in a new era of western liberalism
C) Islam poses the greatest threat to our national identity and represents the "end of
history" as secular and unbiased
D) Capitalism represents the superior economic system that proved its viability upon the
end of the Soviet Empire in the late 20th century - Correct Answer D) Capitalism
represents the superior economic system that proved its viability upon the end of the
Soviet Empire in the late 20th century
The Great Moderation refers to:
A) The thousands of years that man has strived to improve economic performance and
escape subsistence living
, B) The period of the late 20th early 21st centuries that represent decreasing government
involvement in many western countries and greater stability in economic performance
C) The period of the late 20th and early 21st centuries that represents increasing
government involvement in many western countries and greater stability in economic
performance
D) A period from approximately 1980-2007 when political leaders in the U.K., U.S., and
Germany shift away from decades of fascist leadership to form a "Great Moderation"
toward democracy - Correct Answer B) The period of the late 20th early 21st centuries that
represent decreasing government involvement in many western countries and greater
stability in economic performance
Politically, which of the following countries identify as Marxist/Communist?
A) Cuba
B) North Korea
C) China
D) All of the above - Correct Answer D) All of the above
The principal-agent problem is best exemplified by which of the following scenarios?
A) A stockholder that owns shares of Apple invests in Microsoft and does not inform the
board of directors
B) A babysitter on duty invites her boyfriend over without telling the parents employing her
C) An insurance agent earns a commision by selling an insurance policy to a client
D) A member of the board of directors of a major corporation votes to lower the pay of the
acting CEO - Correct Answer B) A babysitter on duty invites her boyfriend over without
telling the parents employing her
In a planned economy which of the following is most likely to occur if there is a shortage of a
product?
A) Higher prices for the product
B) Lower prices for the product
C) Long-waiting lines for the product
D) Inflation - Correct Answer C) Long-waiting lines for the product
Which type of incentive is most likely to be used in a planned economy?
A) Material
B) Punitive
