Eco 561 final exam Study guides, Class notes & Summaries

) Suppose that in the clothing market, production costs have fallen, but the equilibrium price and quantity purchased have both increased. Based on this information you can conclude that A. the supply of clothing has grown faster than the demand for clothing B. demand for clothing has grown faster than the supply of clothing C. the supply of and demand for clothing have grown by the same proportion D. there is no way to determine what has happened to supply and demand with this information 2) C...

ECO 561 Final Exam Guide 2019

1. In the theory of comparative advantage, a good should be produced in that nation where: 2. The simple circular flow model shows that: 3. Suppose you have a limited money income and you are purchasing products A and B, whose prices happen to be the same. To maximize your utility, you should purchase A and B in such amounts that: 4. Contractionary fiscal policy is so named because it: 5. If the Federal Reserve System buys government securities from commercial banks and the public: 6. In o...

ECO 561 Final Exam 1) Suppose that in the clothing market, production costs have fallen, but the equilibrium price and quantity purchased have both increased. Based on this information you can conclude that A. the supply of clothing has grown faster than the demand for clothing B. demand for clothing has grown faster than the supply of clothing C. the supply of and demand for clothing have grown by the same proportion D. there is no way to determine what has happened to supply and demand with ...

1. Which of the following have substantially equivalent effects on a nation's volume of exports and imports?​ ​Exchange rate appreciation and domestic deflation ​Exchange rate depreciation and domestic inflation ​Exchange rate appreciation and a decrease in the domestic supply of money Exchange rate depreciation and domestic deflation 2. Which of the following statements best describes the 12 Federal Reserve Banks?​ ​They are privately owned and publicly controlled central banks w...

ECO 561 Final Exam Answers 1) If a firm in a purely competitive industry is confronted with an equilibrium price of $5, its marginal revenue: A. will be greater than $5 B. will also be $5 C. will be less than $5 D. may be either greater or less than $5   2) A firm that is motivated by self interest should: A. always use large amounts of cheap inputs and small amounts of expensive inputs in producing its  output B. hire each input so the productivity of each is equal at the margin C. always ...

1. In the theory of comparative advantage, a good should be produced in that nation where: the production possibilities line lies further to the right than the trading possibilities line its cost is least in terms of alternative goods that might otherwise be produced its absolute cost in terms of real resources used is least its absolute money cost of production is least 2. The simple circular flow model shows that: businesses are on the selling side of both product and resource markets. busi...

1) Suppose that in the clothing market, production costs have fallen, but the equilibrium price and quantity purchased have both increased. Based on this information you can conclude that A. the supply of clothing has grown faster than the demand for clothing B. demand for clothing has grown faster than the supply of clothing C. the supply of and demand for clothing have grown by the same proportion D. there is no way to determine what has happened to supply and demand with this information 2) C...

1. In the theory of comparative advantage, a good should be produced in that nation where A. the production possibilities line lies further to the right than the trading possibilities line. B. its cost is least in terms of alternative goods that might otherwise be produced. C. its absolute cost in terms of real resources used is least. D. its absolute money cost of production is least. 2. A monopolistically competitive industry combines elements of both competition and monopoly. The monopoly ele...

1. Which of the following have substantially equivalent effects on a nation's volume of exports and imports? Exchange rate appreciation and domestic deflation Exchange rate depreciation and domestic inflation Exchange rate appreciation and a decrease in the domestic supply of money Exchange rate depreciation and domestic deflation 2. Which of the following statements best describes the 12 Federal Reserve Banks?...