ECO 372 WEEK 5 FINAL EXAM STUDY
GUIDE
Ruth wants to calculate the present value of a sum of money that she will receive after
the demise of her grandparents. To calculate the present value, she should use the:
discounting method.
The country of Merilya exported goods and services worth $1.2 million and imported
goods and services worth $2.7 million. The net exports of the country was:
−$1.5 million, and it had a trade deficit
The natural rate of unemployment in a country is 4 percent. This implies that:
the country has a 4 percent unemployment rate when the labor market is in
equilibrium.
If the real exchange rate in the United States is below the equilibrium level, _____.
the quantity of dollars supplied will exceed the quantity of dollars demanded.
, In the country of Platonia, firms make the economic decisions of what to produce, how
to produce, and for whom to produce. Households decide where to work and how to
spend their income. Based on this information, it can be concluded that Platonia has a:
market economy.
A decrease in the tax rates in an economy will cause a:
rightward shift of the aggregate demand curve if the crowding-out effect is larger
than the size of the tax multiplier.
Following the unexpected good performance of Leathex, all its employees were given a
one-time bonus. This consequently led to a rightward shift of the demand curve for
shoes manufactured by the company and a leftward shift of the demand curve for
socks. This shows that shoes are:
normal goods.
In the long run, a higher saving rate:
always leads to a higher level of productivity because of increasing returns to
scale.
GUIDE
Ruth wants to calculate the present value of a sum of money that she will receive after
the demise of her grandparents. To calculate the present value, she should use the:
discounting method.
The country of Merilya exported goods and services worth $1.2 million and imported
goods and services worth $2.7 million. The net exports of the country was:
−$1.5 million, and it had a trade deficit
The natural rate of unemployment in a country is 4 percent. This implies that:
the country has a 4 percent unemployment rate when the labor market is in
equilibrium.
If the real exchange rate in the United States is below the equilibrium level, _____.
the quantity of dollars supplied will exceed the quantity of dollars demanded.
, In the country of Platonia, firms make the economic decisions of what to produce, how
to produce, and for whom to produce. Households decide where to work and how to
spend their income. Based on this information, it can be concluded that Platonia has a:
market economy.
A decrease in the tax rates in an economy will cause a:
rightward shift of the aggregate demand curve if the crowding-out effect is larger
than the size of the tax multiplier.
Following the unexpected good performance of Leathex, all its employees were given a
one-time bonus. This consequently led to a rightward shift of the demand curve for
shoes manufactured by the company and a leftward shift of the demand curve for
socks. This shows that shoes are:
normal goods.
In the long run, a higher saving rate:
always leads to a higher level of productivity because of increasing returns to
scale.
