ECO 561 Wk 6 Individual Final Examination

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ECO 561 Wk 6 Individual Final Examination

 

ECO 561 Wk 6 Individual Final Examination

 

Question 1

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Macroeconomics approaches the study of economics from the viewpoint of:

 

 

Question 2

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All else equal, a large decline in the real interest rate will shift the:​

 

 

Question 3

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If an unintended increase in business inventories occurs at some level of GDP, then GDP:​

 

 

Question 4

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The simple circular flow model shows that:

 

 

Question 5

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The two basic markets shown by the simple circular flow model are:

 

Question 6

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Two major virtues of the market system are that it:

 

 

Question 7

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Because the federal government typically provides disaster relief to farmers, many farmers do not buy crop insurance even through it is federally subsidized. This illustrates:

 

 

Question 8

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Buyers will opt out of markets in which:

 

Question 9

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Which of the following statements best describes the 12 Federal Reserve Banks?

 

 

Question 10

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Research for industrially advanced countries indicates that:​

 

 

Question 11

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Normal profit is:​

 

 

Question 12

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Pure monopolists may obtain economic profits in the long run because:

 

 

Question 13

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​A monopolistically competitive industry combines elements of both competition and monopoly. The monopoly element results from:

 

 

Question 14

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As output increases, total variable cost:​

 

 

Question 15

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The business cycle depicts:

 

 

Question 16

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The term ‘recession’ describes a situation where:​

 

 

Question 17

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Mrs. Arnold is spending all her money income by buying bottles of soda and bags of pretzels in such amounts that the marginal utility of the last bottle is 60 utils and the marginal utility of the last bag is 30 utils. The prices of soda and pretzels are $.60 per bottle and $.40 per bag respectively. It can be concluded that:

 

 

Question 18

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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:

 

 

Question 19

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Countercyclical discretionary fiscal policy calls for:​

 

 

Question 20

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Contractionary fiscal policy is so named because it:​

 

Question 21

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Assume the reserve ratio is 25 percent and Federal Reserve Banks buy $4 million of U.S. securities from the public, which deposits this amount into checking accounts. As a result of these transactions, the supply of money is:​

 

 

Question 22

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If the Federal Reserve System buys government securities from commercial banks and the public:

 

 

Question 23

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In order for mutually beneficial trade to occur between two otherwise isolated nations:​

 

 

 

Question 24

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The primary gain from international trade is:

 

 

Question 25

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The fact that international specialization and trade based on comparative advantage can increase world output is demonstrated by the reality that:

 

 

Question 26

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In the theory of comparative advantage, a good should be produced in that nation where:​

 

 

Question 27

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Why are economists concerned about inflation?

 

 

Question 28

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If the prices of all goods and services rose, but the quantity produced remained unchanged, what would happen to nominal and real GDP?​

 

 

 

Question 29

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Which of the following will generate a demand for country X’s currency in the foreign exchange market?​

 

 

Question 30

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Which of the following have substantially equivalent effects on a nation’s volume of exports and imports?​