Page 1 of 49
ECON 200 UOFA EXAM 3 ALL QUESTIONS AND
CORRECT ANSWERS LATEST UPDATE THIS
YEAR
QUESTION: 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.
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-Increases in technology have greatly lowered the production costs for these goods.
QUESTION: The largest component of GDP is:
A) income
B) profits
C) investment
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, Page 2 of 49
D) consumption - ANSWER-consumption
QUESTION: Bob is a highly qualified worker who is unemployed but looking for work. His
expertise is in a small field and new jobs only open up sporadically. While he is waiting for one
of those openings he is consideredA) structurally unemployed.
B) frictionally unemployed.
C) underemployed.
D) a discouraged worker. - ANSWER-frictionally unemployed.
QUESTION: ) If jobless persons who had given up searching suddenly resumed active searches
for paying jobs—but had not yet found any—the unemployment rate would
A) Rise
B) Fall
C) Stay the same
D) More information is needed - ANSWER-Rise
QUESTION: If cyclical unemployment is eliminated in the economy, then
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, Page 3 of 49
A) the economy is considered to be at full employment.
B) the unemployment rate is below the natural rate of unemployment.
C) the unemployment rate is above the natural rate of unemployment.
D) the economy is at less than full employment. - ANSWER-the economy is considered to be at
full employment.
QUESTION: Inflation is best described asA) 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-a sustained increase
in the average of all prices of goods and services in an economy.
Q; How is GDP measured?A) GDP is measured by adding the quantities of goods and services
produced in a given year.
B) GDP is measured by adding up all the intermediate sales throughout the year.
C) GDP is measured using stock market values, or stock prices.
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, Page 4 of 49
D) GDP is measured by adding the prices of final goods and services produced throughout the
economy in a given time period. - ANSWER-D) GDP is measured by adding the prices of final
goods and services produced throughout the economy in a given time period.
QUESTION: Which of the following is counted in GDP?A) Hamburger buns bought by
McDonald's for making Big Macs
B) A used economics textbook
C) A pair of jeans you purchase from Old Navy
D) An old painting you buy at an auction - ANSWER-A pair of jeans you purchase from Old Navy
QUESTION: 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-Gone with the Wind
4
ECON 200 UOFA EXAM 3 ALL QUESTIONS AND
CORRECT ANSWERS LATEST UPDATE THIS
YEAR
QUESTION: 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.
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-Increases in technology have greatly lowered the production costs for these goods.
QUESTION: The largest component of GDP is:
A) income
B) profits
C) investment
1
, Page 2 of 49
D) consumption - ANSWER-consumption
QUESTION: Bob is a highly qualified worker who is unemployed but looking for work. His
expertise is in a small field and new jobs only open up sporadically. While he is waiting for one
of those openings he is consideredA) structurally unemployed.
B) frictionally unemployed.
C) underemployed.
D) a discouraged worker. - ANSWER-frictionally unemployed.
QUESTION: ) If jobless persons who had given up searching suddenly resumed active searches
for paying jobs—but had not yet found any—the unemployment rate would
A) Rise
B) Fall
C) Stay the same
D) More information is needed - ANSWER-Rise
QUESTION: If cyclical unemployment is eliminated in the economy, then
2
, Page 3 of 49
A) the economy is considered to be at full employment.
B) the unemployment rate is below the natural rate of unemployment.
C) the unemployment rate is above the natural rate of unemployment.
D) the economy is at less than full employment. - ANSWER-the economy is considered to be at
full employment.
QUESTION: Inflation is best described asA) 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-a sustained increase
in the average of all prices of goods and services in an economy.
Q; How is GDP measured?A) GDP is measured by adding the quantities of goods and services
produced in a given year.
B) GDP is measured by adding up all the intermediate sales throughout the year.
C) GDP is measured using stock market values, or stock prices.
3
, Page 4 of 49
D) GDP is measured by adding the prices of final goods and services produced throughout the
economy in a given time period. - ANSWER-D) GDP is measured by adding the prices of final
goods and services produced throughout the economy in a given time period.
QUESTION: Which of the following is counted in GDP?A) Hamburger buns bought by
McDonald's for making Big Macs
B) A used economics textbook
C) A pair of jeans you purchase from Old Navy
D) An old painting you buy at an auction - ANSWER-A pair of jeans you purchase from Old Navy
QUESTION: 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-Gone with the Wind
4
