ECO 372 FINAL EXAM / ECO372 FINAL EXAM: GRADED A | 100% CORRECT

ECO 372 FINAL EXAM
1
The Marions purchased a Persian rug worth $5,000 from an Iranian textile mill.
Everything else remaining unchanged, this will:



decrease the net imports of the domestic country by $5,000.



decrease the consumption expenditure in the domestic country by $5,000.



reduce the net exports of the domestic country by $5,000.



increase the gross domestic product of the domestic country by $5,000.


2
The table given below shows the total amount of spending in the country of
Mesodonia. Mesodonia’s gross domestic product




is:



$5,660 million.


, $4,560 million.



$4,160 million.



$4,710 million.


3
The circular-flow diagram shows that:



firms receive wages and profits from households in the products market.



households sell the factors of production to firms in the inputs market.



households supply resources to firms in the products market.



firms supply labor and other resources to the government in the factor market.

4
Martha lends $200 to a friend who promises to return it after a year. Instead of
lending it to her friend, Martha could have put the money in a bank where she
could have earned an interest rate of 2 percent per annum. Martha’s opportunity
cost of lending the money is _____.



$204



$200
