ECO 372 Final Exam.

ECO 372 Final Exam
1
The Marions purchased a Persian rug worth $5,000 from an Iranian textile mill. Everything else
remaining unchanged, this will:




decrease the net imports of the domestic country by $5,000.



decrease the consumption expenditure in the domestic country by $5,000.



reduce the net exports of the domestic country by $5,000.



increase the gross domestic product of the domestic country by $5,000.


2
The table given below shows the total amount of spending in the country of Mesodonia. Mesodonia’s




gross domestic product is:




$5,660 million.



$4,560 million.


, $4,160 million.



$4,710 million.



3
The circular-flow diagram shows that:




firms receive wages and profits from households in the products market.



households sell the factors of production to firms in the inputs market.



households supply resources to firms in the products market.



firms supply labor and other resources to the government in the factor market.

4
Martha lends $200 to a friend who promises to return it after a year. Instead of lending it to her friend,
Martha could have put the money in a bank where she could have earned an interest rate of 2 percent
per annum. Martha’s opportunity cost of lending the money is _____.




$204



$200



$2



$4

5