ECO 315
ECO 315 CHAPTER 1 ECONOMICS
DETAILED SET EXAM 2026
The Gross Domestic Product is based on _______ whereas the Gross National Product
(GNP) is based on ______. - ANSWER-the location of production; the ownership of
factors of production
Your friend works in the snow removal business in winter and he finds himself
unemployed during spring. This is an example of _______. - ANSWER-seasonal
Many retail stores hire sales assistants during the Chrismas season. However, soon
thereafter in January, they lay off these people, creating the problem of _______
unemployment. - ANSWER-seasonal
If a Japanese company produces and sells $1 million of cars in the U.S., it would be
included in _______ of the U.S. - ANSWER-GDP
Weak U.S. dollar against Chinese yuan favors _______ . - ANSWER-Chinese importers
and US exporters
Fear of a major recession causes stock prices to fall, everything else held constant,
which in turn causes consumer spending to - ANSWER-decrease
A key factor in producing high economic growth is - ANSWER-well-functioning financial
markets
In a recession, due to a large number of discouraged workers, the true unemployment
rate may be _____ the official unemployment rate published by the government. -
ANSWER-higher than
The most comprehensive measure of aggregate output is - ANSWER-GDP
When prices are measured in terms of fixed (base-year) prices they are called
________ prices. - ANSWER-real
The measure of the aggregate price level that is most frequently reported in the media
is the - ANSWER-CPI
ECO 315
, ECO 315
Which of the following is a TRUE statement? - ANSWER-The average price of goods
and services in an economy is called the aggregate price level.
________ policy involves decisions about government spending and taxation. -
ANSWER-Fiscal
Which of the following is most often used in labor union contracts to adjust annual
salaries or other compensations? - ANSWER-CPI
Deflation is an opposite concept of ______. - ANSWER-inflation
According to Professor Choi, the reason why it is difficult to cure an economic illness
such as a cool-down or a recession is because there are time lags. Which of the
following describes the time lag that is associated with implementing a policy? -
ANSWER-administrative lag
The measure of national output currently used in the U.S. is _______. - ANSWER-GDP
Trade surplus exists when exports are _______ imports and trade deficit exists when
imports are _______ exports. - ANSWER-larger than; larger than
Professor Choi describes and analyzes the overall health of an economy by identifying
such markets as _____? - ANSWER-The labor market
The product market
The financial market
The foreign market
If the labor force has 200 million people and 5 million people are unemployed, the
unemployment rate is cauclated as _____. - ANSWER-2.5%
Strong U.S. dollar against Chinese yuan favors _______ . - ANSWER-the US importers;
the US consumers; Chinese exporters
Trade deficit exists when exports are _______ imports. - ANSWER-smaller than
If a young person of 15 years of age is very eager to work for pay, this individual is
considered to be ______. - ANSWER-not in the labor force
If a quarterly inflation rate, as measured by the consumer price index, is 2%, its
annualized inflation rate is ______. - ANSWER-8%
If your friend is not looking for a job because she wishes to travel the world, she is
_____. - ANSWER-not in the labor force at all
Total national output of the U.S. is measured by ______ which is based on the concept
of the ______ of production. - ANSWER-GDP; location
ECO 315
ECO 315 CHAPTER 1 ECONOMICS
DETAILED SET EXAM 2026
The Gross Domestic Product is based on _______ whereas the Gross National Product
(GNP) is based on ______. - ANSWER-the location of production; the ownership of
factors of production
Your friend works in the snow removal business in winter and he finds himself
unemployed during spring. This is an example of _______. - ANSWER-seasonal
Many retail stores hire sales assistants during the Chrismas season. However, soon
thereafter in January, they lay off these people, creating the problem of _______
unemployment. - ANSWER-seasonal
If a Japanese company produces and sells $1 million of cars in the U.S., it would be
included in _______ of the U.S. - ANSWER-GDP
Weak U.S. dollar against Chinese yuan favors _______ . - ANSWER-Chinese importers
and US exporters
Fear of a major recession causes stock prices to fall, everything else held constant,
which in turn causes consumer spending to - ANSWER-decrease
A key factor in producing high economic growth is - ANSWER-well-functioning financial
markets
In a recession, due to a large number of discouraged workers, the true unemployment
rate may be _____ the official unemployment rate published by the government. -
ANSWER-higher than
The most comprehensive measure of aggregate output is - ANSWER-GDP
When prices are measured in terms of fixed (base-year) prices they are called
________ prices. - ANSWER-real
The measure of the aggregate price level that is most frequently reported in the media
is the - ANSWER-CPI
ECO 315
, ECO 315
Which of the following is a TRUE statement? - ANSWER-The average price of goods
and services in an economy is called the aggregate price level.
________ policy involves decisions about government spending and taxation. -
ANSWER-Fiscal
Which of the following is most often used in labor union contracts to adjust annual
salaries or other compensations? - ANSWER-CPI
Deflation is an opposite concept of ______. - ANSWER-inflation
According to Professor Choi, the reason why it is difficult to cure an economic illness
such as a cool-down or a recession is because there are time lags. Which of the
following describes the time lag that is associated with implementing a policy? -
ANSWER-administrative lag
The measure of national output currently used in the U.S. is _______. - ANSWER-GDP
Trade surplus exists when exports are _______ imports and trade deficit exists when
imports are _______ exports. - ANSWER-larger than; larger than
Professor Choi describes and analyzes the overall health of an economy by identifying
such markets as _____? - ANSWER-The labor market
The product market
The financial market
The foreign market
If the labor force has 200 million people and 5 million people are unemployed, the
unemployment rate is cauclated as _____. - ANSWER-2.5%
Strong U.S. dollar against Chinese yuan favors _______ . - ANSWER-the US importers;
the US consumers; Chinese exporters
Trade deficit exists when exports are _______ imports. - ANSWER-smaller than
If a young person of 15 years of age is very eager to work for pay, this individual is
considered to be ______. - ANSWER-not in the labor force
If a quarterly inflation rate, as measured by the consumer price index, is 2%, its
annualized inflation rate is ______. - ANSWER-8%
If your friend is not looking for a job because she wishes to travel the world, she is
_____. - ANSWER-not in the labor force at all
Total national output of the U.S. is measured by ______ which is based on the concept
of the ______ of production. - ANSWER-GDP; location
ECO 315
