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ECON 200 UOFA FINAL EXAM ALL QUESTIONS AND
CORRECT ANSWERS LATEST UPDATE THIS YEAR
QUESTION: Loss-aversion tends to cause people to:
a) ignore wins completely and only focus on the negative effects of losses.
(b) behave too conservatively and not take enough risks.
(c) gamble only when they can afford to play. (d) live boring lives. - ANSWER-(b) behave too
conservatively and not take enough risks.
QUESTION: The ultimatum game shows that people care about:
(a) fairness of payoffs.
(b) uncertainty of payoffs. (c) long run payoffs.
(d) certainty of payoffs. - ANSWER-fairness of payoffs.
QUESTION: Which of the following is included in determining Gross Domestic Product?
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(a) The purchase of a new car.
(b) The purchase of a used car.
(c) A housewife preparing breakfast.
(d) A gardener canning vegetables for consumption during the winter. - ANSWER-A
QUESTION: The underground economy can be described as:
(a) economic production that includes mining.
(b) economic activity that is hidden from the government to avoid taxes or because the activity
is illegal.
(c) production of infrastructure that spurs growth in the rest of the economy.
(d) production of intermediate goods and services. - ANSWER-(b) economic activity that is
hidden from the government to avoid taxes or because the activity is illegal.
QUESTION: 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.
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(c) GDP is measured using stock market values, or stock prices.
(d) GDP is measured by adding the market value of final goods and services produced
throughout the economy in a given time period. - ANSWER-D
QUESTION: The largest component of American GDP is: _________.
(a) income
(b) profits
(c) investment (d) consumption - ANSWER-D. Consumption
QUESTION: ___________ causes nominal GDP to rise; but ___________ causes real GDP to rise.
(a) inflation, a decrease in production
(b) inflation, an increase in production
(c) deflation, a decrease in production (d) deflation, an increase in production - ANSWER-
Inflation, an increase in production
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ECON 200 UOFA FINAL EXAM ALL QUESTIONS AND
CORRECT ANSWERS LATEST UPDATE THIS YEAR
QUESTION: Loss-aversion tends to cause people to:
a) ignore wins completely and only focus on the negative effects of losses.
(b) behave too conservatively and not take enough risks.
(c) gamble only when they can afford to play. (d) live boring lives. - ANSWER-(b) behave too
conservatively and not take enough risks.
QUESTION: The ultimatum game shows that people care about:
(a) fairness of payoffs.
(b) uncertainty of payoffs. (c) long run payoffs.
(d) certainty of payoffs. - ANSWER-fairness of payoffs.
QUESTION: Which of the following is included in determining Gross Domestic Product?
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, Page 2 of 24
(a) The purchase of a new car.
(b) The purchase of a used car.
(c) A housewife preparing breakfast.
(d) A gardener canning vegetables for consumption during the winter. - ANSWER-A
QUESTION: The underground economy can be described as:
(a) economic production that includes mining.
(b) economic activity that is hidden from the government to avoid taxes or because the activity
is illegal.
(c) production of infrastructure that spurs growth in the rest of the economy.
(d) production of intermediate goods and services. - ANSWER-(b) economic activity that is
hidden from the government to avoid taxes or because the activity is illegal.
QUESTION: 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.
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(c) GDP is measured using stock market values, or stock prices.
(d) GDP is measured by adding the market value of final goods and services produced
throughout the economy in a given time period. - ANSWER-D
QUESTION: The largest component of American GDP is: _________.
(a) income
(b) profits
(c) investment (d) consumption - ANSWER-D. Consumption
QUESTION: ___________ causes nominal GDP to rise; but ___________ causes real GDP to rise.
(a) inflation, a decrease in production
(b) inflation, an increase in production
(c) deflation, a decrease in production (d) deflation, an increase in production - ANSWER-
Inflation, an increase in production
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