ASU Econ 211 Final Exam Test Latest
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What is the Real Interest Rate? - CORRECT ANSWER-The nominal interest rate minus the inflation rate.
The inflation rate is measured as - CORRECT ANSWER-The percent change in a price index from one
year to the next.
, What is true about the CPI? - CORRECT ANSWER-The goods included in the CPI ''basket'' are fixed over
time.
If the economy is assumed to be closed than what? - CORRECT ANSWER-net exports = 0
What is Public Saving? - CORRECT ANSWER-Tax revenue plus government expenditures
What does a production possibilities frontier display? - CORRECT ANSWER-Possible combinations of
output an economy can produce given available factors of production and technology.
What is a normative statement? - CORRECT ANSWER-Policymakers should increase the minimum
wage to improve standard of living.
The opportunity cost of helping a friend move is... - CORRECT ANSWER-the next best use of the time
and energy spent helping your friend.
An entity has a comparative advantage if it can produce what? - CORRECT ANSWER-At a lower
opportunity cost than another entity.
T/F: Suppose the United States has an absolute advantage in the production of oil and wheat. This
means that the U.S. would not gain from trading these goods. - CORRECT ANSWER-FALSE
The United States has a comparative advantage in the production of wheat and an absolute advantage
in the production of both apples and wheat relative to Canada. If the U.S. and Canada specialize and
trade, the U.S. should produce what? - CORRECT ANSWER-Wheat
The law of the demand states that if price rises, quantity demanded does what? - CORRECT ANSWER-
Decreases
We would expect demand for cars to increase if... - CORRECT ANSWER-The price of gasoline falls.
Update Questions and Answers|Already
Graded A+|Assured Success
What is the Real Interest Rate? - CORRECT ANSWER-The nominal interest rate minus the inflation rate.
The inflation rate is measured as - CORRECT ANSWER-The percent change in a price index from one
year to the next.
, What is true about the CPI? - CORRECT ANSWER-The goods included in the CPI ''basket'' are fixed over
time.
If the economy is assumed to be closed than what? - CORRECT ANSWER-net exports = 0
What is Public Saving? - CORRECT ANSWER-Tax revenue plus government expenditures
What does a production possibilities frontier display? - CORRECT ANSWER-Possible combinations of
output an economy can produce given available factors of production and technology.
What is a normative statement? - CORRECT ANSWER-Policymakers should increase the minimum
wage to improve standard of living.
The opportunity cost of helping a friend move is... - CORRECT ANSWER-the next best use of the time
and energy spent helping your friend.
An entity has a comparative advantage if it can produce what? - CORRECT ANSWER-At a lower
opportunity cost than another entity.
T/F: Suppose the United States has an absolute advantage in the production of oil and wheat. This
means that the U.S. would not gain from trading these goods. - CORRECT ANSWER-FALSE
The United States has a comparative advantage in the production of wheat and an absolute advantage
in the production of both apples and wheat relative to Canada. If the U.S. and Canada specialize and
trade, the U.S. should produce what? - CORRECT ANSWER-Wheat
The law of the demand states that if price rises, quantity demanded does what? - CORRECT ANSWER-
Decreases
We would expect demand for cars to increase if... - CORRECT ANSWER-The price of gasoline falls.
