IT 304 MIDTERM EXAM QUESTIONS
AND ANSWERS 100% CORRECT
The system (not the science) of production, distribution and consumption of wealth is
known as: - ANSWER-An economy
This division of Economics focuses on the economy as a whole and studies
concepts such as Gross Domestic Product, inflation and employment. - ANSWER-
Macroeconomics
This measures the value of output and subtracts the value of intermediate
consumption within the boundaries of a country. - ANSWER-Gross Domestic
Product (GDP)
The unit of measure for the satisfaction someone receives within the economy -
ANSWER-Utility
The Product Possibilities Frontier describes which economic component - ANSWER-
Diminishing Returns
From The cannon of ______ is a subset for the cannon of reality. - ANSWER-
Science
Which characteristic applies to resource-intensive commodities over time? -
ANSWER-Prices increase
Over time, as supply increases and demand remains the same, what generally
happens to prices - assuming a competitive market? - ANSWER-Goes Down
This does not add or remove wealth, but transfers wealth from one location to
another. It essentially increases the cost of a good or service without changing the
overall quality of the good or service. - ANSWER-Inflation
The policy followed by a government to promote development of certain industries
and/or technologies. Examples include the government's investment in solar energy,
or its protection of the coal industry. - ANSWER-Industrial Policy
One of 6 principal organizations of the United Nations to support international peace,
made up of 5 permanent nations and 10 nations who serve a 2 year term: -
ANSWER-Security Council
Assume a supply and demand curve shows a supply curve increasing and the
demand curve decreasing. What happens to prices when the curves intersect in a
competitive market? - ANSWER-Decrease
__________ Inflation adds wealth while deflation erases wealth. - ANSWER-False
AND ANSWERS 100% CORRECT
The system (not the science) of production, distribution and consumption of wealth is
known as: - ANSWER-An economy
This division of Economics focuses on the economy as a whole and studies
concepts such as Gross Domestic Product, inflation and employment. - ANSWER-
Macroeconomics
This measures the value of output and subtracts the value of intermediate
consumption within the boundaries of a country. - ANSWER-Gross Domestic
Product (GDP)
The unit of measure for the satisfaction someone receives within the economy -
ANSWER-Utility
The Product Possibilities Frontier describes which economic component - ANSWER-
Diminishing Returns
From The cannon of ______ is a subset for the cannon of reality. - ANSWER-
Science
Which characteristic applies to resource-intensive commodities over time? -
ANSWER-Prices increase
Over time, as supply increases and demand remains the same, what generally
happens to prices - assuming a competitive market? - ANSWER-Goes Down
This does not add or remove wealth, but transfers wealth from one location to
another. It essentially increases the cost of a good or service without changing the
overall quality of the good or service. - ANSWER-Inflation
The policy followed by a government to promote development of certain industries
and/or technologies. Examples include the government's investment in solar energy,
or its protection of the coal industry. - ANSWER-Industrial Policy
One of 6 principal organizations of the United Nations to support international peace,
made up of 5 permanent nations and 10 nations who serve a 2 year term: -
ANSWER-Security Council
Assume a supply and demand curve shows a supply curve increasing and the
demand curve decreasing. What happens to prices when the curves intersect in a
competitive market? - ANSWER-Decrease
__________ Inflation adds wealth while deflation erases wealth. - ANSWER-False
