ECO320 Final Exam UPDATED Exam
Questions and CORRECT Answers
In a command economy, the ______ either makes economic decisions itself of at least strongly
influences how the decisions are made. - CORRECT ANSWER Government
In a _________, mot economic decisions about what to produce, how to produce it and whom to
prove it are made by buyers and sellers. - CORRECT ANSWER Market-oriented economy.
The basic difference between macroeconomics and microeconomics is that: - CORRECT
ANSWER Microeconomics is concerned with the trees (Individual markets) while macro
economics is concerned with the Forrest (aggregate Markets)
Attending college is a case where the ________________ exceeds the monetary cost. -
CORRECT ANSWER opportunity cost
The opportunity cost of attending university is likely to include all except which of the
following? - CORRECT ANSWER the cost of haircuts received during the school term
The marginal benefit of a slice of pizza is the: - CORRECT ANSWER maximum amount that
a consumer is willing to pay for the slice.
Gross domestic product equals $1.2 trillion. If consumptions equals $690 billion, investment
equals $200 billion, and government spending equals $260 billion, then: - CORRECT
ANSWER Exports exceed imports by $50 billion.
Which of the following is included in GDP calculations? - CORRECT ANSWER the
university tuition paid to enroll in a course
The gap between exports and imports in a nation's economy is called the ________. - CORRECT
ANSWER Trade Balance.
, To achieve a high standard of living, a nation should: - CORRECT ANSWER promote
economic growth
In the long run, the most important source of increase in a nations standard of living is a: -
CORRECT ANSWER high rate of economic growth.
Which of the following best describes the relationship between economic growth and literacy? -
CORRECT ANSWER Increased literacy stimulates economic growth by raising labor
productivity, and as the economy grows, people consume more education.
Reginald looked for work for six months but could not find a job to his liking. He now spends his
time at the beach. For purposes of employment he is considered: - CORRECT ANSWER out
of the labor force
The most significant real economic cost of high unemployment is: - CORRECT
ANSWER the potential goods and services that might have been produced but weren't.
Insofar as government public policy is concerned, the best way to battle unemployment would be
__________________. - CORRECT ANSWER to minimize recessions
The most commonly cited measure of inflation in the United States is: - CORRECT
ANSWER Consumer Price Index (CPI)
One of the reasons that a rise in the price of food basket goods over time tends to overstate the
rise in a consumer's true cost of living is: - CORRECT ANSWER Substitution Bias
Another term used to describe negative inflation is: - CORRECT ANSWER deflation
Trade surpluses and trade deficits can be _______ for an economy in certain circumstances. -
CORRECT ANSWER either A or B
Questions and CORRECT Answers
In a command economy, the ______ either makes economic decisions itself of at least strongly
influences how the decisions are made. - CORRECT ANSWER Government
In a _________, mot economic decisions about what to produce, how to produce it and whom to
prove it are made by buyers and sellers. - CORRECT ANSWER Market-oriented economy.
The basic difference between macroeconomics and microeconomics is that: - CORRECT
ANSWER Microeconomics is concerned with the trees (Individual markets) while macro
economics is concerned with the Forrest (aggregate Markets)
Attending college is a case where the ________________ exceeds the monetary cost. -
CORRECT ANSWER opportunity cost
The opportunity cost of attending university is likely to include all except which of the
following? - CORRECT ANSWER the cost of haircuts received during the school term
The marginal benefit of a slice of pizza is the: - CORRECT ANSWER maximum amount that
a consumer is willing to pay for the slice.
Gross domestic product equals $1.2 trillion. If consumptions equals $690 billion, investment
equals $200 billion, and government spending equals $260 billion, then: - CORRECT
ANSWER Exports exceed imports by $50 billion.
Which of the following is included in GDP calculations? - CORRECT ANSWER the
university tuition paid to enroll in a course
The gap between exports and imports in a nation's economy is called the ________. - CORRECT
ANSWER Trade Balance.
, To achieve a high standard of living, a nation should: - CORRECT ANSWER promote
economic growth
In the long run, the most important source of increase in a nations standard of living is a: -
CORRECT ANSWER high rate of economic growth.
Which of the following best describes the relationship between economic growth and literacy? -
CORRECT ANSWER Increased literacy stimulates economic growth by raising labor
productivity, and as the economy grows, people consume more education.
Reginald looked for work for six months but could not find a job to his liking. He now spends his
time at the beach. For purposes of employment he is considered: - CORRECT ANSWER out
of the labor force
The most significant real economic cost of high unemployment is: - CORRECT
ANSWER the potential goods and services that might have been produced but weren't.
Insofar as government public policy is concerned, the best way to battle unemployment would be
__________________. - CORRECT ANSWER to minimize recessions
The most commonly cited measure of inflation in the United States is: - CORRECT
ANSWER Consumer Price Index (CPI)
One of the reasons that a rise in the price of food basket goods over time tends to overstate the
rise in a consumer's true cost of living is: - CORRECT ANSWER Substitution Bias
Another term used to describe negative inflation is: - CORRECT ANSWER deflation
Trade surpluses and trade deficits can be _______ for an economy in certain circumstances. -
CORRECT ANSWER either A or B
