ECO 203 MILESTONES QUESTIONS WITH VERIFIED ANSWERS 2026 ,100%CORRECT

ECO 203 MILESTONES QUESTIONS WITH VERIFIED ANSWERS 2026 1 Which statement below is NOT true regarding government intervention in the economy? • If the economy is doing badly, the government should cut spending to improve it. • Most suggest that government should promote macroeconomic stability. • Unemployment insurance is an automatic economic stabilizer. • Progressive income tax is a form of automatic stabilizer. CONCEPT Role of the Government/Government Spending/Transfer Payments 2 If a new car cost $1,250 in 1950 and is $30,000 in 2013, prices have increased by a factor of which of the following? • 24 • 20 • 12 • 48 CONCEPT Nominal GDP versus Real GDP 3 The consumer will bear more of the burden of a tax if demand is which of the following? • Perfectly elastic • Unit elastic • Elastic CONCEPT Tax/Subsidy Which of the following is a reason to learn about macroeconomics? • It allows us to understand the decisions that small business owners make. • It helps us to predict the prices of individual goods and wages in specific jobs. • Understanding the reasons behind economic policy decisions can make us better citizens. • Macroeconomics focuses on decisions made at the individual level. CONCEPT Why Study Macroeconomics? Select the income elasticity that corresponds to a normal good.