ECON 2030 FINAL EXAM FINAL TEST PAPER
2026 FULL QUESTIONS AND SOLUTIONS
VERIFIED A+
◉ Which of the following is likely to increase measured GDP?
Answer: Marijuana becomes legal to grow and sell in all 50 states
◉ Refer to Table. What was the GDP deflator in 2008? Answer: 98.2
◉ Refer to Table. What was the inflation rate between 2008 and
2009, as measured by the GDP deflator? Answer: 1.8%
◉ If you have trouble finding a job because of a recession in the
economy, we would say that you are Answer: cyclically unemployed
◉ If a teenager lost her job delivering newspapers to her neighbors
because the newspaper publisher switched to the on-line only
format, then she is Answer: structurally unemployed
◉ Suppose in a small economy, the unemployment rate is 20%. If
240 million people in this economy are currently employed and the
labor force participation rate is 80%, what is the working age
population in this economy? Answer: 375 million
,◉ Suppose the working age population is 600 million, the labor
force participation rate is 75%, and the unemployment rate is 20%.
How many people are employed in this economy? Answer: 360
million
◉ Refer to the table. The employment rate for this simple economy
equals Answer: 90.9%
◉ Economics is the study of the ________ people make to attain their
goals, given their ____________ resources Answer: choices; scarce
◉ Refer to table. Using marginal analysis, how many hours should
Julius extend his shop's hours of operations? Answer: 2 hours
◉ Lionel's Lawn Care is a company that maintains residential yards.
Lionel's cost for his standard package of mowing, edging, and
trimming is $15, and he charges $25 for this service. For a total price
of $40, Lionel will also trim shrubs, a service that adds an additional
$10 to the total cost of the standard package. Should Lionel continue
to offer the shrub trimming service? Answer: yes, his marginal
benefit is greater than his marginal cost
◉ Which of the following is a positive economic statement? Answer:
If the price of gasoline rises, a smaller quantity of it will be bought
, ◉ Consider the following statements: Which of the above statements
demonstrates that economic agents respond to incentives? Answer:
D(a,b):Soda drinkers purchase more soda from a grocery store that
sells soda at a lower price than other rival grocery stores in the area.
AND Homeowners take steps to increase security bc they believe it
is more costly to allow burglaries than to install security monitoring
equipment.
◉ Which of the following is a macroeconomics question? Answer:
What determines the unemployment rate?
◉ What is the slope of the demand for cigarettes? Answer: -0.1
◉ Using the slope that you calculated in question 7, write down the
equation for the demand for cigarettes. Answer: P=12-0.1*Qd
◉ The equations above describe the demand and supply for
Pauline's Pickled Pomegranates. What are the equilibrium price and
quantity for Pauline's Pickled Pomegranates? Answer: P*=$30;
Q*=15 thousand
◉ In 2017, Peelville consumed 30,000 bananas. In 2018, banana
consumption rose to 35,000. Calculate the percentage change in
banana consumption. Answer: 16.67%
2026 FULL QUESTIONS AND SOLUTIONS
VERIFIED A+
◉ Which of the following is likely to increase measured GDP?
Answer: Marijuana becomes legal to grow and sell in all 50 states
◉ Refer to Table. What was the GDP deflator in 2008? Answer: 98.2
◉ Refer to Table. What was the inflation rate between 2008 and
2009, as measured by the GDP deflator? Answer: 1.8%
◉ If you have trouble finding a job because of a recession in the
economy, we would say that you are Answer: cyclically unemployed
◉ If a teenager lost her job delivering newspapers to her neighbors
because the newspaper publisher switched to the on-line only
format, then she is Answer: structurally unemployed
◉ Suppose in a small economy, the unemployment rate is 20%. If
240 million people in this economy are currently employed and the
labor force participation rate is 80%, what is the working age
population in this economy? Answer: 375 million
,◉ Suppose the working age population is 600 million, the labor
force participation rate is 75%, and the unemployment rate is 20%.
How many people are employed in this economy? Answer: 360
million
◉ Refer to the table. The employment rate for this simple economy
equals Answer: 90.9%
◉ Economics is the study of the ________ people make to attain their
goals, given their ____________ resources Answer: choices; scarce
◉ Refer to table. Using marginal analysis, how many hours should
Julius extend his shop's hours of operations? Answer: 2 hours
◉ Lionel's Lawn Care is a company that maintains residential yards.
Lionel's cost for his standard package of mowing, edging, and
trimming is $15, and he charges $25 for this service. For a total price
of $40, Lionel will also trim shrubs, a service that adds an additional
$10 to the total cost of the standard package. Should Lionel continue
to offer the shrub trimming service? Answer: yes, his marginal
benefit is greater than his marginal cost
◉ Which of the following is a positive economic statement? Answer:
If the price of gasoline rises, a smaller quantity of it will be bought
, ◉ Consider the following statements: Which of the above statements
demonstrates that economic agents respond to incentives? Answer:
D(a,b):Soda drinkers purchase more soda from a grocery store that
sells soda at a lower price than other rival grocery stores in the area.
AND Homeowners take steps to increase security bc they believe it
is more costly to allow burglaries than to install security monitoring
equipment.
◉ Which of the following is a macroeconomics question? Answer:
What determines the unemployment rate?
◉ What is the slope of the demand for cigarettes? Answer: -0.1
◉ Using the slope that you calculated in question 7, write down the
equation for the demand for cigarettes. Answer: P=12-0.1*Qd
◉ The equations above describe the demand and supply for
Pauline's Pickled Pomegranates. What are the equilibrium price and
quantity for Pauline's Pickled Pomegranates? Answer: P*=$30;
Q*=15 thousand
◉ In 2017, Peelville consumed 30,000 bananas. In 2018, banana
consumption rose to 35,000. Calculate the percentage change in
banana consumption. Answer: 16.67%
