PSU Econ 104 Final Exam Actual Questions and
Answers 2024 Graded A+ - Brown
Which of the following would be an example of a microeconomic issue? Select
all that apply.
1. The federal government of Sweden offers tax credits for individuals to put
solar paneling on their homes.
2. Sandra takes out a loan to invest in a new business opportunity.
3. A local sandwich shop shuts down during a recession.
4. None of these are microeconomic issues.
1, 2, and 3
True or false: Macroeconomics is the study of the economy as a whole which
includes topics such as unemployment, inflation, and overall production.
True
True or false: Microeconomics is the study of the economy as a whole which
includes topics such as unemployment, inflation, and overall production
False
The inflation rate for a given year is measured by taking the:
Percentage change in the price level from the previous year
True or false: The official unemployment rate will never reach 0%.
True
During a recessionary period, the unemployment rate __________ and the total
output and production __________.
rises; falls
Which of the following is not one of the three main areas of macroeconomics
mentioned in this lesson?
Output and Production
Employment
Prices
Taxes
Taxes
The Central Bank of the United States targets a __________ inflation rate.
2%
True or false: The Federal Reserve Economic Database (FRED) began in the
early 1990s.
True
Which of the following can be done using the Federal Reserve Economic
Database (FRED)?
Download economic data into a spreadsheet format
All of these are correct
Change economic data to represent percentage change over time
Access the source of where the economic data originated
View economic data graphically
All of these are correct
An intermediate good is a good that:
A good used in production of a final good or service
Which of the folowing would be included in the United States GDP in 2019?
A pair of jeans produced in the United States in 2019
, The purchase of a new house would be counted under which component of
GDP?
Investment
Which of the following component of GDP can be negative?
consumption
investment
net exports
None of these can be a negative number
government purchases
Net exports
Consumption is the __________ component of GDP in the United States.
largest
Which of the following is a reason why GDP is not the perfect measure of
production?
it does not include levels of pollution
it does not include health measures
it does not include household production
it does not include levels of inequality
all of these are reasons why the GDP is not a perfect measure of production
it does not include household production
Which of the following is a reason why GDP is not the perfect measure of well-
being in a society?
it does not include the level of income inequality
it does not include the amount of leisure time people have on average
it does not include the level of pollution in society
all of these are reasons why GDP is not a perfect measure of economic well-
being
it does not include health measures like life expectancy rates
all of these are reasons why GDP is not a perfect measure of economic well-being
If prices steadily increase year over year, which of the following must be true?
Real GDP will always increase year over year.
Nominal GDP will always increase year over year.
Nominal GDP is higher than real GDP in years before the base year.
Real GDP is higher than nominal GDP in years after the base year.
None of these are correct
None of these are correct
If production and prices steadily increase year over year, which of the
following must be true?
Nominal GDP is higher than real GDP in years after the base year.
All of these are correct.
Nominal GDP will always increase year over year.
Real GDP is higher than nominal GDP in years before the base year.
Real GDP will always increase year over year.
All of these are correct.
If production steadily increases year over year, which of the following must be
true?
None of these are correct
Real GDP will always increase year over year.
Nominal GDP is higher than real GDP in years before the base year.
Answers 2024 Graded A+ - Brown
Which of the following would be an example of a microeconomic issue? Select
all that apply.
1. The federal government of Sweden offers tax credits for individuals to put
solar paneling on their homes.
2. Sandra takes out a loan to invest in a new business opportunity.
3. A local sandwich shop shuts down during a recession.
4. None of these are microeconomic issues.
1, 2, and 3
True or false: Macroeconomics is the study of the economy as a whole which
includes topics such as unemployment, inflation, and overall production.
True
True or false: Microeconomics is the study of the economy as a whole which
includes topics such as unemployment, inflation, and overall production
False
The inflation rate for a given year is measured by taking the:
Percentage change in the price level from the previous year
True or false: The official unemployment rate will never reach 0%.
True
During a recessionary period, the unemployment rate __________ and the total
output and production __________.
rises; falls
Which of the following is not one of the three main areas of macroeconomics
mentioned in this lesson?
Output and Production
Employment
Prices
Taxes
Taxes
The Central Bank of the United States targets a __________ inflation rate.
2%
True or false: The Federal Reserve Economic Database (FRED) began in the
early 1990s.
True
Which of the following can be done using the Federal Reserve Economic
Database (FRED)?
Download economic data into a spreadsheet format
All of these are correct
Change economic data to represent percentage change over time
Access the source of where the economic data originated
View economic data graphically
All of these are correct
An intermediate good is a good that:
A good used in production of a final good or service
Which of the folowing would be included in the United States GDP in 2019?
A pair of jeans produced in the United States in 2019
, The purchase of a new house would be counted under which component of
GDP?
Investment
Which of the following component of GDP can be negative?
consumption
investment
net exports
None of these can be a negative number
government purchases
Net exports
Consumption is the __________ component of GDP in the United States.
largest
Which of the following is a reason why GDP is not the perfect measure of
production?
it does not include levels of pollution
it does not include health measures
it does not include household production
it does not include levels of inequality
all of these are reasons why the GDP is not a perfect measure of production
it does not include household production
Which of the following is a reason why GDP is not the perfect measure of well-
being in a society?
it does not include the level of income inequality
it does not include the amount of leisure time people have on average
it does not include the level of pollution in society
all of these are reasons why GDP is not a perfect measure of economic well-
being
it does not include health measures like life expectancy rates
all of these are reasons why GDP is not a perfect measure of economic well-being
If prices steadily increase year over year, which of the following must be true?
Real GDP will always increase year over year.
Nominal GDP will always increase year over year.
Nominal GDP is higher than real GDP in years before the base year.
Real GDP is higher than nominal GDP in years after the base year.
None of these are correct
None of these are correct
If production and prices steadily increase year over year, which of the
following must be true?
Nominal GDP is higher than real GDP in years after the base year.
All of these are correct.
Nominal GDP will always increase year over year.
Real GDP is higher than nominal GDP in years before the base year.
Real GDP will always increase year over year.
All of these are correct.
If production steadily increases year over year, which of the following must be
true?
None of these are correct
Real GDP will always increase year over year.
Nominal GDP is higher than real GDP in years before the base year.
