PSU ECON 104 FINAL EXAM QUESTIONS & ANSWERS
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. - Answers :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. - Answers :True
True or false: The Federal Reserve Economic Database (FRED) began in the early
1990s. - Answers :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 - Answers :All of these are correct
An intermediate good is a good that: - Answers :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? - Answers
: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? -
Answers :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 - Answers :Net exports
Consumption is the __________ component of GDP in the United States. - Answers
: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 - Answers
: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 - Answers :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 - Answers :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. - Answers :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.
Nominal GDP will always increase year over year.
Real GDP is higher than nominal GDP in years after the base year. - Answers :Real
GDP will always increase year over year.
Someone who is working part-time but wants to be working full-time is classified as: -
Answers :Employed
My grandmother is 86 years old and retired 10 years ago. Last month she decided she
was bored and wanted to find a part-time. Nana (what I call my grandmother) put in a
few applications but has yet to hear back. She continues to look for a part-time job. We
would officially count Nana as: - Answers :unemployed
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. - Answers :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. - Answers :True
True or false: The Federal Reserve Economic Database (FRED) began in the early
1990s. - Answers :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 - Answers :All of these are correct
An intermediate good is a good that: - Answers :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? - Answers
: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? -
Answers :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 - Answers :Net exports
Consumption is the __________ component of GDP in the United States. - Answers
: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 - Answers
: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 - Answers :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 - Answers :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. - Answers :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.
Nominal GDP will always increase year over year.
Real GDP is higher than nominal GDP in years after the base year. - Answers :Real
GDP will always increase year over year.
Someone who is working part-time but wants to be working full-time is classified as: -
Answers :Employed
My grandmother is 86 years old and retired 10 years ago. Last month she decided she
was bored and wanted to find a part-time. Nana (what I call my grandmother) put in a
few applications but has yet to hear back. She continues to look for a part-time job. We
would officially count Nana as: - Answers :unemployed
