ECON 302 Final Exam Multiple
Choice Study Guide with
complete verified solutions
The study of the economy as a whole is called:
A) household economics.
B) business economics.
C) microeconomics.
D) macroeconomics - answer D.) Macroeconomics
GDP is the market value of all ______ goods and services produced within an
economy
in a given period of time.
A) used
B) intermediate
C) consumer
D) final - answer D.) final
According to the definition used by the U.S. Bureau of Labor Statistics, a
person is not
in the labor force if that person:
A) is going to school full time.
B) is temporarily absent from a job because of illness.
C) has been temporarily laid off.
D) is out of a job and looking for work during the previous four weeks. -
answer A.) is going to school full time.
,If an increasing proportion of the adult population is retired, then the labor
force
participation rate:
A) will increase.
B) will decrease.
C) will remain constant.
D) may increase, decrease, or remain constant. - answer B.) will decrease.
Which of the following is not a variable considered by macroeconomists:
A) Gross Domestic Product (GDP)
B) Consumer Price Index (CPI)
C) unemployment rate
D) consumer surplus - answer D.) consumer surplus
A production function is a technological relationship between:
A) factor prices and the marginal product of factors.
B) factors of production and factor prices.
C) factors of production and the quantity of output produced.
D) factor prices and the quantity of output produced. - answer C.) factors of
production and the quantity of output produced.
The investment function slopes ______ because there are ______ investment
projects
that are profitable as the interest rate decreases.
A) upward; fewer
B) upward; more
C) downward; fewer
D) downward; more - answer D.) downward; more
, If an earthquake destroys some of the capital stock, the neoclassical theory
of
distribution predicts:
A) the real wage will rise and the real rental price of capital will fall.
B) both the real wage and the real rental price of capital will fall.
C) both the real wage and the real rental price of capital will rise.
D) the real wage will fall and the real rental price of capital will rise. - answer
D.) the real wage will fall and the real rental price of capital will rise.
An example of increasing returns to scale is when capital and labor inputs:
A) both increase 10 percent and output increases 5 percent.
B) both increase 10 percent and output increases 10 percent.
C) both increase 5 percent and output increases 10 percent.
D) do not change and output decreases 5 percent. - answer C.) both increase
5 percent and output increases 10 percent.
Which production function exhibits increasing marginal returns to capital:
A) Y = 10 (L
.5K
.5).
B) Y = 4 (LK2
).
C) Y = 3L+.5K.
D) All production functions listed above exhibit increasing marginal returns to
capital. - answer B.) Y = 4 (LK2)
To make a trade in a barter economy requires:
A)
currency.
Choice Study Guide with
complete verified solutions
The study of the economy as a whole is called:
A) household economics.
B) business economics.
C) microeconomics.
D) macroeconomics - answer D.) Macroeconomics
GDP is the market value of all ______ goods and services produced within an
economy
in a given period of time.
A) used
B) intermediate
C) consumer
D) final - answer D.) final
According to the definition used by the U.S. Bureau of Labor Statistics, a
person is not
in the labor force if that person:
A) is going to school full time.
B) is temporarily absent from a job because of illness.
C) has been temporarily laid off.
D) is out of a job and looking for work during the previous four weeks. -
answer A.) is going to school full time.
,If an increasing proportion of the adult population is retired, then the labor
force
participation rate:
A) will increase.
B) will decrease.
C) will remain constant.
D) may increase, decrease, or remain constant. - answer B.) will decrease.
Which of the following is not a variable considered by macroeconomists:
A) Gross Domestic Product (GDP)
B) Consumer Price Index (CPI)
C) unemployment rate
D) consumer surplus - answer D.) consumer surplus
A production function is a technological relationship between:
A) factor prices and the marginal product of factors.
B) factors of production and factor prices.
C) factors of production and the quantity of output produced.
D) factor prices and the quantity of output produced. - answer C.) factors of
production and the quantity of output produced.
The investment function slopes ______ because there are ______ investment
projects
that are profitable as the interest rate decreases.
A) upward; fewer
B) upward; more
C) downward; fewer
D) downward; more - answer D.) downward; more
, If an earthquake destroys some of the capital stock, the neoclassical theory
of
distribution predicts:
A) the real wage will rise and the real rental price of capital will fall.
B) both the real wage and the real rental price of capital will fall.
C) both the real wage and the real rental price of capital will rise.
D) the real wage will fall and the real rental price of capital will rise. - answer
D.) the real wage will fall and the real rental price of capital will rise.
An example of increasing returns to scale is when capital and labor inputs:
A) both increase 10 percent and output increases 5 percent.
B) both increase 10 percent and output increases 10 percent.
C) both increase 5 percent and output increases 10 percent.
D) do not change and output decreases 5 percent. - answer C.) both increase
5 percent and output increases 10 percent.
Which production function exhibits increasing marginal returns to capital:
A) Y = 10 (L
.5K
.5).
B) Y = 4 (LK2
).
C) Y = 3L+.5K.
D) All production functions listed above exhibit increasing marginal returns to
capital. - answer B.) Y = 4 (LK2)
To make a trade in a barter economy requires:
A)
currency.
