ECO 320 Final Exam revision questions with correct
answers
In a command economy, the ______ either makes economic decisions itself of at least strongly
influences how the decisions are made. - Government
In a _________, mot economic decisions about what to produce, how to produce it and whom
to prove it are made by buyers and sellers. - Market-oriented economy.
The basic difference between macroeconomics and microeconomics is that: - Microeconomics is
concerned with the trees (Individual markets) while macro economics is concerned with the
Forrest (aggregate Markets)
Attending college is a case where the ________________ exceeds the monetary cost. -
opportunity cost
The opportunity cost of attending university is likely to include all except which of the following?
- the cost of haircuts received during the school term
The marginal benefit of a slice of pizza is the: - maximum amount that a consumer is willing to
pay for the slice.
Gross domestic product equals $1.2 trillion. If consumptions equals $690 billion, investment
equals $200 billion, and government spending equals $260 billion, then: - Exports exceed
imports by $50 billion.
, Which of the following is included in GDP calculations? - the university tuition paid to enroll in a
course
The gap between exports and imports in a nation's economy is called the ________. - Trade
Balance.
To achieve a high standard of living, a nation should: - promote economic growth
In the long run, the most important source of increase in a nations standard of living is a: - high
rate of economic growth.
Which of the following best describes the relationship between economic growth and literacy? -
Increased literacy stimulates economic growth by raising labor productivity, and as the economy
grows, people consume more education.
Reginald looked for work for six months but could not find a job to his liking. He now spends his
time at the beach. For purposes of employment he is considered: - out of the labor force
The most significant real economic cost of high unemployment is: - the potential goods and
services that might have been produced but weren't.
Insofar as government public policy is concerned, the best way to battle unemployment would
be __________________. - to minimize recessions
The most commonly cited measure of inflation in the United States is: - Consumer Price Index
(CPI)
answers
In a command economy, the ______ either makes economic decisions itself of at least strongly
influences how the decisions are made. - Government
In a _________, mot economic decisions about what to produce, how to produce it and whom
to prove it are made by buyers and sellers. - Market-oriented economy.
The basic difference between macroeconomics and microeconomics is that: - Microeconomics is
concerned with the trees (Individual markets) while macro economics is concerned with the
Forrest (aggregate Markets)
Attending college is a case where the ________________ exceeds the monetary cost. -
opportunity cost
The opportunity cost of attending university is likely to include all except which of the following?
- the cost of haircuts received during the school term
The marginal benefit of a slice of pizza is the: - maximum amount that a consumer is willing to
pay for the slice.
Gross domestic product equals $1.2 trillion. If consumptions equals $690 billion, investment
equals $200 billion, and government spending equals $260 billion, then: - Exports exceed
imports by $50 billion.
, Which of the following is included in GDP calculations? - the university tuition paid to enroll in a
course
The gap between exports and imports in a nation's economy is called the ________. - Trade
Balance.
To achieve a high standard of living, a nation should: - promote economic growth
In the long run, the most important source of increase in a nations standard of living is a: - high
rate of economic growth.
Which of the following best describes the relationship between economic growth and literacy? -
Increased literacy stimulates economic growth by raising labor productivity, and as the economy
grows, people consume more education.
Reginald looked for work for six months but could not find a job to his liking. He now spends his
time at the beach. For purposes of employment he is considered: - out of the labor force
The most significant real economic cost of high unemployment is: - the potential goods and
services that might have been produced but weren't.
Insofar as government public policy is concerned, the best way to battle unemployment would
be __________________. - to minimize recessions
The most commonly cited measure of inflation in the United States is: - Consumer Price Index
(CPI)
