ECON 2010 EXAM 1 QUESTIONS AND
CORRECT ANSWERS
"The European Central Bank said that the euro zone grew faster than expected in the first half of the
year, and raised its growth forecast for the block for 2017, to 2.2%- the fastest pace in ten years" this
is an example of a news item about a ________ issue. ✅✅CORRECT ANSW-macroeconomic
standard of living ✅✅CORRECT ANSW-the degree to which people have access to goods and
services that make their lives easier, healthier, safer, and more enjoyable
economic growth ✅✅CORRECT ANSW-a process of steady increases in the quantity and quality of
the goods and services the economy can produce
average labor productivity ✅✅CORRECT ANSW-total output/number of people employed
what is the standard of living best measured by? ✅✅CORRECT ANSW-output per person
average labor productivity definition ✅✅CORRECT ANSW-output per employed worker
suppose the population and the number of employed workers are constant, if average labor
productivity decreases, then total output ___________ ✅✅CORRECT ANSW-decreases
if living standards in the US, as measured by output per person, increase, then total output must
have increased __________ population increased ✅✅CORRECT ANSW-more rapidly than
macroeconomic policy ✅✅CORRECT ANSW-government policies that affect the performance of
the economy as a whole. there are 3 major types including monetary, fiscal, and structural policy
monetary policy ✅✅CORRECT ANSW-regulating the nations money supply, determined by the
Federal Reserve
microeconomics ✅✅CORRECT ANSW-the study of how individual choice under scarcity and its
implications for the behavior of prices and quantities in individual markets
, macroeconomics ✅✅CORRECT ANSW-the study of the performance of national economies and
the policies that governments use to try to improve that performance
aggregation ✅✅CORRECT ANSW-The adding up of individual economic variables to obtain
economy-wide totals
government actions designed to affect the performance of the economy as a whole are called
_________ policies ✅✅CORRECT ANSW-macroeconomic
"how has employment in the construction industry in the US changed over the last 12 months?" is
an example of a _______ question ✅✅CORRECT ANSW-microeconomic
fiscal policy ✅✅CORRECT ANSW-regulating the governments budget, determined by the Congress
structural policy ✅✅CORRECT ANSW-changing the underlying structure or institutions of the
nations economy
policy analysis ✅✅CORRECT ANSW-analyzing the effects of a proposed policy
positive analyses ✅✅CORRECT ANSW-addresses the economic consequences of a particular
policy, not whether those consequences are desirable
normative analyses ✅✅CORRECT ANSW-addresses the question of whether a policy should be
used; inevitably involves the values of the person doing the analysis
market value ✅✅CORRECT ANSW-its selling price in the open market
final goods and services ✅✅CORRECT ANSW-the end product of a process that consumers
actually use
intermediate goods or services ✅✅CORRECT ANSW-the goods or services produced on the way
toward making the final product
CORRECT ANSWERS
"The European Central Bank said that the euro zone grew faster than expected in the first half of the
year, and raised its growth forecast for the block for 2017, to 2.2%- the fastest pace in ten years" this
is an example of a news item about a ________ issue. ✅✅CORRECT ANSW-macroeconomic
standard of living ✅✅CORRECT ANSW-the degree to which people have access to goods and
services that make their lives easier, healthier, safer, and more enjoyable
economic growth ✅✅CORRECT ANSW-a process of steady increases in the quantity and quality of
the goods and services the economy can produce
average labor productivity ✅✅CORRECT ANSW-total output/number of people employed
what is the standard of living best measured by? ✅✅CORRECT ANSW-output per person
average labor productivity definition ✅✅CORRECT ANSW-output per employed worker
suppose the population and the number of employed workers are constant, if average labor
productivity decreases, then total output ___________ ✅✅CORRECT ANSW-decreases
if living standards in the US, as measured by output per person, increase, then total output must
have increased __________ population increased ✅✅CORRECT ANSW-more rapidly than
macroeconomic policy ✅✅CORRECT ANSW-government policies that affect the performance of
the economy as a whole. there are 3 major types including monetary, fiscal, and structural policy
monetary policy ✅✅CORRECT ANSW-regulating the nations money supply, determined by the
Federal Reserve
microeconomics ✅✅CORRECT ANSW-the study of how individual choice under scarcity and its
implications for the behavior of prices and quantities in individual markets
, macroeconomics ✅✅CORRECT ANSW-the study of the performance of national economies and
the policies that governments use to try to improve that performance
aggregation ✅✅CORRECT ANSW-The adding up of individual economic variables to obtain
economy-wide totals
government actions designed to affect the performance of the economy as a whole are called
_________ policies ✅✅CORRECT ANSW-macroeconomic
"how has employment in the construction industry in the US changed over the last 12 months?" is
an example of a _______ question ✅✅CORRECT ANSW-microeconomic
fiscal policy ✅✅CORRECT ANSW-regulating the governments budget, determined by the Congress
structural policy ✅✅CORRECT ANSW-changing the underlying structure or institutions of the
nations economy
policy analysis ✅✅CORRECT ANSW-analyzing the effects of a proposed policy
positive analyses ✅✅CORRECT ANSW-addresses the economic consequences of a particular
policy, not whether those consequences are desirable
normative analyses ✅✅CORRECT ANSW-addresses the question of whether a policy should be
used; inevitably involves the values of the person doing the analysis
market value ✅✅CORRECT ANSW-its selling price in the open market
final goods and services ✅✅CORRECT ANSW-the end product of a process that consumers
actually use
intermediate goods or services ✅✅CORRECT ANSW-the goods or services produced on the way
toward making the final product
