Page |1
ECON 200 UOFA FINAL EXAM VERSION 2 NEWEST
2025/2026 NEWEST ACTUAL EXAM WITH COMPLETE
QUESTIONS AND VERIFIED ANSWERS |ALREADY GRADED
A+|
Suppose that in 2014, Nogales Nation has a CPI of 200. In 2015,
the CPI rises to 210. Calculate the inflation rate in Nogales Nation
between 2014 and 2015. - ANSWER-(210 - 200) / 200 x 100 =
5%
One of the problems in measuring inflation over time is that:
(a) prices tend to fall from year to year.
(b) changes in consumption patterns and innovations make
comparisons across years problematic.
(c) prices tend to rise each year.
(d) prices are always the same each year. - ANSWER-(b)
changes in consumption patterns and innovations make
comparisons across years problematic.
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If an economy is experiencing cost-push inflation what will happen
to prices and economic output?
(a) prices and output will both increase.
(b) prices and output will both fall.
(c) prices will rise and output will fall. - ANSWER-(c) prices will
rise and output will fall.
Which of these films is the most successful film in box office
history in real terms?
(a) Avatar
(b) The Dark Knight
(c) Gone with the Wind
(d) Titanic - ANSWER-(c) Gone with the Wind
If inflation is a general rise in the price level, why have consumer
electronics prices fallen over time?
(a) The demand for electronics has decreased.
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(b) Electronics are not counted in the CPI.
(c) Electronics are getting smaller in size so the price is falling as
well.
(d) Increases in technology have greatly lowered the production
costs for these goods. - ANSWER-(d) Increases in technology
have greatly lowered the production costs for these goods.
Inflation is best defined as:
(a) a sustained increase in the price of ALL goods and services in
an economy.
(b) a relative price increase.
(c) a sustained increase in the average of all prices of goods and
services in an economy.
(d) a sustained increase in the price of a single good or service. -
ANSWER-(c) a sustained increase in the average of all prices of
goods and services in an economy.
If an economy is experiencing demand-pull inflation what will
happen to prices and economic output?
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(a) Prices and output will both increase.
(b) Prices and output will both fall.
(c) Prices will rise and output will fall. - ANSWER-(a) Prices and
output will both increase.
The government computes the CPI each month. Which answer
best reflects the importance of this number?
(a) The CPI is a core economic statistic that helps economists
understand the amount of inflation.
(b) The CPI is one of many measures of inflation.
(c) The CPI data is "old" news, alternative daily measures of
inflation exist that are reliable.
(d) The CPI is not an accurate measure of inflation - ANSWER-(c)
The CPI data is "old" news, alternative daily measures of inflation
exist that are reliable.
Which of the following is NOT a cost of inflation?
ECON 200 UOFA FINAL EXAM VERSION 2 NEWEST
2025/2026 NEWEST ACTUAL EXAM WITH COMPLETE
QUESTIONS AND VERIFIED ANSWERS |ALREADY GRADED
A+|
Suppose that in 2014, Nogales Nation has a CPI of 200. In 2015,
the CPI rises to 210. Calculate the inflation rate in Nogales Nation
between 2014 and 2015. - ANSWER-(210 - 200) / 200 x 100 =
5%
One of the problems in measuring inflation over time is that:
(a) prices tend to fall from year to year.
(b) changes in consumption patterns and innovations make
comparisons across years problematic.
(c) prices tend to rise each year.
(d) prices are always the same each year. - ANSWER-(b)
changes in consumption patterns and innovations make
comparisons across years problematic.
, Page |2
If an economy is experiencing cost-push inflation what will happen
to prices and economic output?
(a) prices and output will both increase.
(b) prices and output will both fall.
(c) prices will rise and output will fall. - ANSWER-(c) prices will
rise and output will fall.
Which of these films is the most successful film in box office
history in real terms?
(a) Avatar
(b) The Dark Knight
(c) Gone with the Wind
(d) Titanic - ANSWER-(c) Gone with the Wind
If inflation is a general rise in the price level, why have consumer
electronics prices fallen over time?
(a) The demand for electronics has decreased.
, Page |3
(b) Electronics are not counted in the CPI.
(c) Electronics are getting smaller in size so the price is falling as
well.
(d) Increases in technology have greatly lowered the production
costs for these goods. - ANSWER-(d) Increases in technology
have greatly lowered the production costs for these goods.
Inflation is best defined as:
(a) a sustained increase in the price of ALL goods and services in
an economy.
(b) a relative price increase.
(c) a sustained increase in the average of all prices of goods and
services in an economy.
(d) a sustained increase in the price of a single good or service. -
ANSWER-(c) a sustained increase in the average of all prices of
goods and services in an economy.
If an economy is experiencing demand-pull inflation what will
happen to prices and economic output?
, Page |4
(a) Prices and output will both increase.
(b) Prices and output will both fall.
(c) Prices will rise and output will fall. - ANSWER-(a) Prices and
output will both increase.
The government computes the CPI each month. Which answer
best reflects the importance of this number?
(a) The CPI is a core economic statistic that helps economists
understand the amount of inflation.
(b) The CPI is one of many measures of inflation.
(c) The CPI data is "old" news, alternative daily measures of
inflation exist that are reliable.
(d) The CPI is not an accurate measure of inflation - ANSWER-(c)
The CPI data is "old" news, alternative daily measures of inflation
exist that are reliable.
Which of the following is NOT a cost of inflation?
