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ECON 200 UOFA EXAM 2 NEWEST 2025/2026 NEWEST
ACTUAL EXAM WITH COMPLETE QUESTIONS AND
VERIFIED ANSWERS |ALREADY GRADED A+|
If scientific research produces a technological breakthrough in the
production of computer memory, then
a. business costs will increase, profits will fall, and production will
decrease.
b. business costs will fall, but profits will also fall, and production
will decrease.
c. business costs will fall, profits will improve, and production will
increase.
d. profits will increase, allowing businesses to cut back
production. - ANSWER-c. business costs will fall, profits will
improve, and production will increase
At levels of output close to full employment, the aggregate supply
curve is probably
a. very flat.
b. very steep.
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c. sloped downward.
d. perfectly elastic. - ANSWER-b. very steep
As the slope of the aggregate supply curve increases, this
indicates that
a. the economy is getting close to potential GDP.
b. the economy is reducing employment.
c. inflation will be less of a problem.
d. output is falling. - ANSWER-a. the economy is getting close to
potential GDP
The major cost of production in the economy is
a. interest expense.
b. capital costs.
c. rents.
d. profits.
e. wages. - ANSWER-e. wages
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To calculate a firm's per unit of output profit, it is necessary to
subtract
a. price from cost per unit.
b. price from resource costs.
c. cost per unit from product price.
d. cost per unit from cost of resources. - ANSWER-c. cost per unit
from product price
If resource prices are fixed and the selling price rises, then
a. profits will decrease.
b. profits will increase.
c. profits will remain constant.
d. both profits and output will decrease. - ANSWER-b. profits will
increase
The price of imported oil decreased in 2001. How did this effect
the aggregate supply curve?
a. It became steeper.
b. It became flatter.
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c. It shifted inward.
d. It shifted outward. - ANSWER-d. It shifted outward
As long as the aggregate supply curve is upward sloping, an
increase in aggregate demand will increase
a. real wealth.
b. price levels.
c. unemployment.
d. net exports. - ANSWER-b. price levels
Self-correcting mechanism reveals that
a. real wages will increase if there is an increase in price.
b. nominal wages will fall if there is inflationary gap.
c. nominal wages will increase if there is recessionary gap.
d. in the long run economy will be in equilibrium at potential GDP.
- ANSWER-d. in the long run economy will be in equilibrium at
potential GDP
The usual results of an adverse supply shock are
ECON 200 UOFA EXAM 2 NEWEST 2025/2026 NEWEST
ACTUAL EXAM WITH COMPLETE QUESTIONS AND
VERIFIED ANSWERS |ALREADY GRADED A+|
If scientific research produces a technological breakthrough in the
production of computer memory, then
a. business costs will increase, profits will fall, and production will
decrease.
b. business costs will fall, but profits will also fall, and production
will decrease.
c. business costs will fall, profits will improve, and production will
increase.
d. profits will increase, allowing businesses to cut back
production. - ANSWER-c. business costs will fall, profits will
improve, and production will increase
At levels of output close to full employment, the aggregate supply
curve is probably
a. very flat.
b. very steep.
, Page |2
c. sloped downward.
d. perfectly elastic. - ANSWER-b. very steep
As the slope of the aggregate supply curve increases, this
indicates that
a. the economy is getting close to potential GDP.
b. the economy is reducing employment.
c. inflation will be less of a problem.
d. output is falling. - ANSWER-a. the economy is getting close to
potential GDP
The major cost of production in the economy is
a. interest expense.
b. capital costs.
c. rents.
d. profits.
e. wages. - ANSWER-e. wages
, Page |3
To calculate a firm's per unit of output profit, it is necessary to
subtract
a. price from cost per unit.
b. price from resource costs.
c. cost per unit from product price.
d. cost per unit from cost of resources. - ANSWER-c. cost per unit
from product price
If resource prices are fixed and the selling price rises, then
a. profits will decrease.
b. profits will increase.
c. profits will remain constant.
d. both profits and output will decrease. - ANSWER-b. profits will
increase
The price of imported oil decreased in 2001. How did this effect
the aggregate supply curve?
a. It became steeper.
b. It became flatter.
, Page |4
c. It shifted inward.
d. It shifted outward. - ANSWER-d. It shifted outward
As long as the aggregate supply curve is upward sloping, an
increase in aggregate demand will increase
a. real wealth.
b. price levels.
c. unemployment.
d. net exports. - ANSWER-b. price levels
Self-correcting mechanism reveals that
a. real wages will increase if there is an increase in price.
b. nominal wages will fall if there is inflationary gap.
c. nominal wages will increase if there is recessionary gap.
d. in the long run economy will be in equilibrium at potential GDP.
- ANSWER-d. in the long run economy will be in equilibrium at
potential GDP
The usual results of an adverse supply shock are
