Econ 104 Bill Goffe Final Exam Newest 2026
Questions and Correct Detailed Answers
Already Graded A+
What is capital?
a. plants, machinery, and equipment
b. money in the bank
c. stocks and bonds
d. none of the above - CORRECT ANSWER-a. plants, machinery, and
equipment
Which of the following best defines "technological change," as economists use
this term?
a. more computers, software, and cell phones
b. more production taking place in a country's economy
c. more workers working in businesses
,d. better capital, more human capital and better ways of organizing business -
CORRECT ANSWER-d. better capital, more human capital and better ways of
organizing business
Which of the following does not increase long run economic growth?
a. increase in capital
b. a working legal system
c. increases in the money supply
d. increases in human capital - CORRECT ANSWER-b. a working legal system
Which has the largest impact on potential GDP?
a. interest rates set by the Fed
b. automatic stabilizers
c. human capital
d. entitlement spending - CORRECT ANSWER-c. human capital
Say that you calculate nominal GDP from one year to the next during an
expansion when there is inflation. What would stay constant in your calculation?
,a. the number of goods produced
b. the prices of goods
c. the market basket
d. none of the above - CORRECT ANSWER-d. none of the above
The most common use of the "Rule of 70" is which of the following?
a. to explain economic growth
b. to explain technological change
c. to find how long it takes something to double
d. to find the growth rate when something doubles - CORRECT ANSWER-c. to
find how long it takes something to double
Which of the following best describes why the per-worker production function is
important?
a. it describes why living standards rise b. it describes how capital is used
c. it describes how labor is used
, d. it describes diminishing returns - CORRECT ANSWER-d. it describes
diminishing returns
There was only one cause of the Great Recession - the subprime crisis.
a. true
b. false - CORRECT ANSWER-b. false
What kinds of retirement plans are most common today for new workers?
a. defined contribution (where the worker runs the plan)
b. defined benefit (where the employer runs the plan) - CORRECT ANSWER-a.
defined contribution (where the worker runs the plan)
The Quantity Theory of Money is a description of both long-run inflation and of
long-run growth
a. true
b. false - CORRECT ANSWER-a. true
Questions and Correct Detailed Answers
Already Graded A+
What is capital?
a. plants, machinery, and equipment
b. money in the bank
c. stocks and bonds
d. none of the above - CORRECT ANSWER-a. plants, machinery, and
equipment
Which of the following best defines "technological change," as economists use
this term?
a. more computers, software, and cell phones
b. more production taking place in a country's economy
c. more workers working in businesses
,d. better capital, more human capital and better ways of organizing business -
CORRECT ANSWER-d. better capital, more human capital and better ways of
organizing business
Which of the following does not increase long run economic growth?
a. increase in capital
b. a working legal system
c. increases in the money supply
d. increases in human capital - CORRECT ANSWER-b. a working legal system
Which has the largest impact on potential GDP?
a. interest rates set by the Fed
b. automatic stabilizers
c. human capital
d. entitlement spending - CORRECT ANSWER-c. human capital
Say that you calculate nominal GDP from one year to the next during an
expansion when there is inflation. What would stay constant in your calculation?
,a. the number of goods produced
b. the prices of goods
c. the market basket
d. none of the above - CORRECT ANSWER-d. none of the above
The most common use of the "Rule of 70" is which of the following?
a. to explain economic growth
b. to explain technological change
c. to find how long it takes something to double
d. to find the growth rate when something doubles - CORRECT ANSWER-c. to
find how long it takes something to double
Which of the following best describes why the per-worker production function is
important?
a. it describes why living standards rise b. it describes how capital is used
c. it describes how labor is used
, d. it describes diminishing returns - CORRECT ANSWER-d. it describes
diminishing returns
There was only one cause of the Great Recession - the subprime crisis.
a. true
b. false - CORRECT ANSWER-b. false
What kinds of retirement plans are most common today for new workers?
a. defined contribution (where the worker runs the plan)
b. defined benefit (where the employer runs the plan) - CORRECT ANSWER-a.
defined contribution (where the worker runs the plan)
The Quantity Theory of Money is a description of both long-run inflation and of
long-run growth
a. true
b. false - CORRECT ANSWER-a. true
