ECO 211 MIDTERM EXAM COMPLETE ACTUAL EXAM QUESTIONS AND CORRECT ANSWERS, GRADE A GUARANTEED

ECO 211 MIDTERM EXAM COMPLETE ACTUAL EXAM QUESTIONS AND CORRECT ANSWERS, GRADE A GUARANTEED If demand is ___, then a given % rise in price will cause a smaller % fall in quantity demanded so that total revenue (Price × Quantity) rises. a. Unit Elastic b.Inelastic c.Elastic d.Perfectly elastic b. Inelastic In general, supply and demand are often inelastic in the short run, so that shifts in either demand or supply can cause: a. A relatively greater change in prices b. A monopoly situation in all cases c. No change in prices d. A relatively smaller change in prices a. A relatively greater change in prices According to the circular flow diagram, households... Are sellers in the labor market and buyers in the goods and services market. The circular flow diagram describes... How firms and households carry out economic activities through the market for input or factors of production and the market for goods and services. Which of the following elements demonstrate the degree of globalization? a. Large underground economies. b. High levels of trade and exchange between countries. c. A low export to Gross Domestic Product ratio for a country. d. Rapidly growing Gross Domestic Product for several countries. B- High levels of trade and exchange between countries. Which of the following examples represents the relationship between division of labor and production? - a. A company assigns different parts of the production process to various workers, which complicates the process and results in waste b. A hospital hires more qualified nurses to ensure better quality of care for patients c. A nurse takes patients' vital signs while the doctor focuses on diagnosis so that more patients can receive care d. A primary care office hires more doctors to ensure that more patients receive care. c. A nurse takes patients' vital signs while the doctor focuses on diagnosis so that more patients can receive care Gross Domestic Product represents... . The value of the total production in a country b. The ratio of exports relative to the total production in a country c. The sum of imports and exports of a country d. The degree of globalization a. The value of the total production in a country Someone criticizes the government for increasing interest rates but approving the increase in government spending. They are criticizing the government's ____policy and praising the government ___ policy. a. Microeconomic, Macroeconomic b. Fiscal, Monetary c. Macroeconomic, Microeconomic d. Monetary, Fiscal d. Monetary, Fiscal Scarcity is a problem because... a. Unemployment exists, and therefore some people do not have enough resources to meet their basic needs. b. There are only small quantities of resources available on earth c. Not everyone has the same amount of resources, such as land and labor d. There are not enough resources to produce all the goods and services people want to purchase. d. There are not enough resources to produce all the goods and services people want to purchase. Which of the following statements describes microeconomics? a. Inflation in the US increased by 5% in May 2021. b. The price of beef increased by 15% last month due to a cyber-attack on a major beef processing firm. c. The federal government lowered corporate tax rates in 2019. d. The size of the U.S. economy shrunk by 7% in 2020 due to the COVID crisis. b. The price of beef increased by 15% last month due to a cyber-attack on a major beef processing firm. In market economies, most decisions are made by ___, while in command economies, most economic decisions are made by ___. a. Private citizens and firms; the government b. Households; local leaders c. Families, private businesses d. The government; households and firms a. Private citizens and firms; the government A good economic theory .... a. A set of mathematical equations representing economic behavior. b. Must contain a complete representation of real economic events to be useful. c. is a detailed representation of reality used to explain past economic events. d. captures the essence of the economic concepts and facilitates their understanding. d. captures the essence of the economic concepts and facilitates their understanding. Which of the following is NOT true about intra-industry trading? a. With intra-industry trading, comparative advantage is not fixed as taking advantage of economies of scale plays a larger role in productivity than geography or education levels b. With intra-industry trading, countries can specialize in unique processes and skills c. Intra-industry trading can keep costs low collectively, while giving consumers lots of options to choose from d. In intra-industry trading, firms can often control the entire value chain for their product d. In intra-industry trading, firms can often control the entire value chain for their product What is the relationship between production costs and comparative advantage? a. Comparative advantage happens when the production costs for both trading partners are the same. b. Comparative advantage considers, "How much am I giving up to produce this good in this country?" c. Comparative advantage identifies the good for which the producer's absolute advantage is relatively smaller. d. Comparative advantage identifies where the producer's absolute productivity disadvantage is relatively larger. b. Comparative advantage considers, "How much am I giving up to produce this good in this country?" What is the relationship between economies of scale and intra-industry trade? a. As average total cost decreases, intra-industry trade decreases. b. As average total cost increases, intra-industry trade increases c. Intra-industry trade brings competition and diverse products to markets where economies of scale would otherwise promote fewer firms and fewer product options d. Intra-industry trade reduces competition and product variety in markets where economies of scale would otherwise promote competition and diverse products. c. Intra-industry trade brings competition and diverse products to markets where economies of scale would otherwise promote fewer firms and fewer product options