ASU ECN 211 FINAL EXAM Review
(Chapters 1-4, 6, 10-12, 15-17, 20-22)
2025/2026 Exam All Answers and
Illustrations Given
Refer to the figure. If the government imposes a minimum wage of $9, then
how many workers will be employed? - 🧠 ANSWER ✔✔6,000
Which of the following Fed actions would increase the money supply? - 🧠
ANSWER ✔✔Buy bonds
A soft drink cost $1.75 in 2019. The value for the CPI in 1965 is 60.2 and
the value of the CPI for 2019 is 236.2, what is the price of a soft drink in
1965 dollars? - 🧠 ANSWER ✔✔$0.45
Refer to the figure. If the economy starts at Y, then W represents: - 🧠
ANSWER ✔✔A recession
The United Kingdom is an advanced economy, and over the past century
its rate of economic growth has been higher than that of the United States.
- 🧠 ANSWER ✔✔False
1
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,If candles and candlesticks are complements, then which of the following
would increase the demand for candles? - 🧠 ANSWER ✔✔A decrease in
the price of candlesticks.
Refer to the figure. If the production possibilities frontiers shown are each
for one day of production, then which of the following combinations of tacos
and burritos are Adam and Deirdre together unable to produce in a given
day? (you'll have to look the image up on the internet) - 🧠 ANSWER ✔✔700
tacos, 150 burritos.
Which of the following is NOT an automatic stabilizer? - 🧠 ANSWER ✔✔An
increase in money supply.
Monica has $500 to spend and wants to buy either a new snowboard or a
new laptop. Both the snowboard and the laptop cost around $500, so she
can only buy one. This illustrates the basic concept that: - 🧠 ANSWER
✔✔People face trade-offs
Gross Domestic Product (GDP) - 🧠 ANSWER ✔✔Includes the value of
government services but not the value of services provided by major
household appliances purchased in a previous period.
2
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PRIVACY STATEMENT. ALL RIGHTS RESERVED
, Tax increases shift aggregate demand curve to the: - 🧠 ANSWER ✔✔Left.
While increases in government spending shift the aggregate demand curve
to the right.
Positive statements are NOT: - 🧠 ANSWER ✔✔Prescriptive
Refer to the Table. Suppose the government imposes a price floor of $5 on
this market. What will be the size of the surplus in this market? - 🧠
ANSWER ✔✔12 units
Which of the following did NOT occur in the housing and financial crisis? - 🧠
ANSWER ✔✔Shift of the long run Phillips curve to the left.
The Fed changes the discount rate and, as a direct result, reserves have
increased. The Fed has most likely: - 🧠 ANSWER ✔✔Decreased the
discount rate.
Suppose Jessica can wash six windows per hour or she can iron twelve
shirts per hour. Peter can wash four windows per hour or he can iron ten
shirts per hour. Which of the following is not true? - 🧠 ANSWER ✔✔Peter
has an absolute advantage over Jessica in ironing shirts.
3
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
(Chapters 1-4, 6, 10-12, 15-17, 20-22)
2025/2026 Exam All Answers and
Illustrations Given
Refer to the figure. If the government imposes a minimum wage of $9, then
how many workers will be employed? - 🧠 ANSWER ✔✔6,000
Which of the following Fed actions would increase the money supply? - 🧠
ANSWER ✔✔Buy bonds
A soft drink cost $1.75 in 2019. The value for the CPI in 1965 is 60.2 and
the value of the CPI for 2019 is 236.2, what is the price of a soft drink in
1965 dollars? - 🧠 ANSWER ✔✔$0.45
Refer to the figure. If the economy starts at Y, then W represents: - 🧠
ANSWER ✔✔A recession
The United Kingdom is an advanced economy, and over the past century
its rate of economic growth has been higher than that of the United States.
- 🧠 ANSWER ✔✔False
1
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,If candles and candlesticks are complements, then which of the following
would increase the demand for candles? - 🧠 ANSWER ✔✔A decrease in
the price of candlesticks.
Refer to the figure. If the production possibilities frontiers shown are each
for one day of production, then which of the following combinations of tacos
and burritos are Adam and Deirdre together unable to produce in a given
day? (you'll have to look the image up on the internet) - 🧠 ANSWER ✔✔700
tacos, 150 burritos.
Which of the following is NOT an automatic stabilizer? - 🧠 ANSWER ✔✔An
increase in money supply.
Monica has $500 to spend and wants to buy either a new snowboard or a
new laptop. Both the snowboard and the laptop cost around $500, so she
can only buy one. This illustrates the basic concept that: - 🧠 ANSWER
✔✔People face trade-offs
Gross Domestic Product (GDP) - 🧠 ANSWER ✔✔Includes the value of
government services but not the value of services provided by major
household appliances purchased in a previous period.
2
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, Tax increases shift aggregate demand curve to the: - 🧠 ANSWER ✔✔Left.
While increases in government spending shift the aggregate demand curve
to the right.
Positive statements are NOT: - 🧠 ANSWER ✔✔Prescriptive
Refer to the Table. Suppose the government imposes a price floor of $5 on
this market. What will be the size of the surplus in this market? - 🧠
ANSWER ✔✔12 units
Which of the following did NOT occur in the housing and financial crisis? - 🧠
ANSWER ✔✔Shift of the long run Phillips curve to the left.
The Fed changes the discount rate and, as a direct result, reserves have
increased. The Fed has most likely: - 🧠 ANSWER ✔✔Decreased the
discount rate.
Suppose Jessica can wash six windows per hour or she can iron twelve
shirts per hour. Peter can wash four windows per hour or he can iron ten
shirts per hour. Which of the following is not true? - 🧠 ANSWER ✔✔Peter
has an absolute advantage over Jessica in ironing shirts.
3
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
