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
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.
complementary goods.
substitutes.
inferior goods.
6
Ephlon Inc., an Italian bike manufacturer, opens a factory in the United States.
This is an example of:
the catch-up effect.
the accumulation of human capital.
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
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.
complementary goods.
substitutes.
inferior goods.
6
Ephlon Inc., an Italian bike manufacturer, opens a factory in the United States.
This is an example of:
the catch-up effect.
the accumulation of human capital.
