Exam 3|ECON 211 Exam 3: Questions & Answers| Latest Updated A+ Score Guide

Which of the following best describes scarce resources? (Ans- resources for which the quantity that people want exceeds the quantity that is freely available Economic reasoning implies that economic agents will make decisions: (Ans- by comparing the costs and benefits of various options Which of following statements correctly highlights the difference between micro and macro (Ans- micro deals with small parts of the economy, whereas macro deals with aggregate economic performance Which of the following statements is true of optimization (Ans- economic agents who optimize attempt to choose the best feasible option, given the information that they have A student has two options: she can either surf the web, or work parttime. Working part-time pays her $20 per hour. What is the student's opportunity cost of surfing the web for 5 hours? (Ans- $100Suppose the market for cement is such that the govt. does not interfere in price determination but plays an important role in the provision of property rights. While there are a large number of buyers and sellers, everyone conducts transactions at a common market price. Which of the following statements is true about the structure of the cement market? (Ans- the cement market is free and competitive Assume that a seller in a perfectly competitive market charges more than the equilibrium price. It is likely that the seller will: (Ans- lose almost all of his buyers The demand curve for most goods is normally: (Ans- downward sloping Which of the following factors will not cause a shift in the demand for a good? (Ans- a change in the market price of a good Which of the following is likely to lead to a right shift in the supply curve of cotton? (Ans- an increase in labor productivity due to training programsAssume that a worker in a technology firm can produce 3 circuit boards in an hour. Due to subsequent innovation, he is now able to produce 6 circuit boards per hour. Other things remaining the same, the firm's supply curve is likely to: (Ans- shift to the right ______ is the market value of the final goods and services produced within the borders of a country during a particular period of time (Ans- Gross Domestic Product Double counting occurs when: (Ans- inputs are included in the calculation of the gross domestic product Which of the following will be included in the calculation of GDP using expenditure method? (Ans- investments in machineries Which of the following will be included in the calculation of GDP using the income-based method? (Ans- health insurance provided to a worker by the employerJohn is a U.S. citizen who brought a house in Canada. This purchase will lead to a _____ (Ans- increase in the GDP of Canada A bundle of goods that costs $1 in the U.S. is worth 5 units in Country A's currency. If Country A's GDP in its own currency is 5,000,000 units, Country a's GDP in purchasing power parity-adjusted dollars is____ (Ans- $1,000,000 The main reason why income per capita and income per worker varies across countries because (Ans- productivity varies across countries Which of the following is a better measure of the productivity of employed people in a country? (Ans- income per worker Workers in an economy are likely to be more productive if: (Ans- The economy has a high capital stock The productivity of workers in an economy is high if: (Ans- the economy has high levels of human capital