EC250 Final Exam Latest Update 2025-2026 120
Questions and 100% Verified Correct Answers
Guaranteed A+
1. The biggest economic problem at present is
a) decline in output
b) high inflation
c) bear market in stocks
d) high unemployment - CORRECT ANSWER: b) high inflation
1. Which of the following is investment?
a) purchase of shares in initial public offering
b) purchase of a used printing press
c) the production of a machine
d) none of the above - CORRECT ANSWER: d) none of the above
10. In labour market equilibrium
a) nominal wage can exceed the marginal product of labour
b) real wage can exceed the marginal product of labour
c) real wage is equal to the marginal product of labour
d) nominal wage = MPL - CORRECT ANSWER: c) real wage is equal to the marginal
product of labour
10. The Human Development Index includes
,a) income, life expectancy at birth and education
b) income, life expectancy at birth and average age at retirement
c) income, life expectancy at birth and proportion of income spent on health care
d) income and education - CORRECT ANSWER: a) income, life expectancy at birth and
education
11. A couple buys a house, putting down 10% of the total. This means that their
leverage is
a) 10
b) 11
c) 90
d) none of the above - CORRECT ANSWER: a) 10
11. Labour demand curve
a) shifts to the right if the MPL rises
b) shifts to the right if MPL falls
c) shifts to the right if the real wage falls
d) shifts to the right if the real wage increases - CORRECT ANSWER: a) shifts to the
right if the MPL rises
12. A couple buys a house, putting down 10% of the total. The value of the house
increases by 20%. This means that the return on the down payment is
a) 10%
b) 20%
c) 100%
,d) 200% - CORRECT ANSWER: d) 200%
House is 100, down payment is 10, mortgage is 90. The value of the house increases
20% to 120; mortgage is 90, own money is 30. Return: 20 on 10 down payment = 200%
12. Demand for labour increases as
a) nominal wages fall
b) real wages fall
c) payroll taxes increase
d) expected productivity falls - CORRECT ANSWER: b) real wages fall
13. A higher cost of hiring workers
a) reduces unemployment as firms do not fire people to avoid paying hiring costs
b) increases unemployment as it is more difficult for firms to fire workers
c) increases unemployment since it raises the cost of labour
d) all of the above - CORRECT ANSWER: d) all of the above
13. GDP does not include
a) household work
b) effects on the environment
c) harmful activities
d) only a) and b) are true - CORRECT ANSWER: d) only a) and b) are true
14. An increase in the real wage
, a) shifts labour supply curve to the right
b) shifts labour demand curve to the left
c) increases labour supply
d) increases labour supply if the substitution effect is stronger than the wealth effect -
CORRECT ANSWER: d) increases labour supply if the substitution effect is stronger
than the wealth effect
14. To calculate GDP, we use value added because
a) otherwise, the value of intermediate products may be counted more than once
b) otherwise, the value of final products may be counted more than once
c) value added is always positive
d) none of the above is correct - CORRECT ANSWER: a) otherwise, the value of
intermediate products may be counted more than once
15. GDP =GNP
a) plus income of foreign factors in Canada
b) plus income of foreign factors in Canada minus income of Canadian factors abroad
c) minus income of foreign factors in Canada
d) minus income of foreign factors in Canada plus income of Canadian factors abroad -
CORRECT ANSWER: b) plus income of foreign factors in Canada minus income of
Canadian factors abroad
15. If the supply of labour increases, then the real wage will _________ and the number
of people working will __________
a) increase, increase
Questions and 100% Verified Correct Answers
Guaranteed A+
1. The biggest economic problem at present is
a) decline in output
b) high inflation
c) bear market in stocks
d) high unemployment - CORRECT ANSWER: b) high inflation
1. Which of the following is investment?
a) purchase of shares in initial public offering
b) purchase of a used printing press
c) the production of a machine
d) none of the above - CORRECT ANSWER: d) none of the above
10. In labour market equilibrium
a) nominal wage can exceed the marginal product of labour
b) real wage can exceed the marginal product of labour
c) real wage is equal to the marginal product of labour
d) nominal wage = MPL - CORRECT ANSWER: c) real wage is equal to the marginal
product of labour
10. The Human Development Index includes
,a) income, life expectancy at birth and education
b) income, life expectancy at birth and average age at retirement
c) income, life expectancy at birth and proportion of income spent on health care
d) income and education - CORRECT ANSWER: a) income, life expectancy at birth and
education
11. A couple buys a house, putting down 10% of the total. This means that their
leverage is
a) 10
b) 11
c) 90
d) none of the above - CORRECT ANSWER: a) 10
11. Labour demand curve
a) shifts to the right if the MPL rises
b) shifts to the right if MPL falls
c) shifts to the right if the real wage falls
d) shifts to the right if the real wage increases - CORRECT ANSWER: a) shifts to the
right if the MPL rises
12. A couple buys a house, putting down 10% of the total. The value of the house
increases by 20%. This means that the return on the down payment is
a) 10%
b) 20%
c) 100%
,d) 200% - CORRECT ANSWER: d) 200%
House is 100, down payment is 10, mortgage is 90. The value of the house increases
20% to 120; mortgage is 90, own money is 30. Return: 20 on 10 down payment = 200%
12. Demand for labour increases as
a) nominal wages fall
b) real wages fall
c) payroll taxes increase
d) expected productivity falls - CORRECT ANSWER: b) real wages fall
13. A higher cost of hiring workers
a) reduces unemployment as firms do not fire people to avoid paying hiring costs
b) increases unemployment as it is more difficult for firms to fire workers
c) increases unemployment since it raises the cost of labour
d) all of the above - CORRECT ANSWER: d) all of the above
13. GDP does not include
a) household work
b) effects on the environment
c) harmful activities
d) only a) and b) are true - CORRECT ANSWER: d) only a) and b) are true
14. An increase in the real wage
, a) shifts labour supply curve to the right
b) shifts labour demand curve to the left
c) increases labour supply
d) increases labour supply if the substitution effect is stronger than the wealth effect -
CORRECT ANSWER: d) increases labour supply if the substitution effect is stronger
than the wealth effect
14. To calculate GDP, we use value added because
a) otherwise, the value of intermediate products may be counted more than once
b) otherwise, the value of final products may be counted more than once
c) value added is always positive
d) none of the above is correct - CORRECT ANSWER: a) otherwise, the value of
intermediate products may be counted more than once
15. GDP =GNP
a) plus income of foreign factors in Canada
b) plus income of foreign factors in Canada minus income of Canadian factors abroad
c) minus income of foreign factors in Canada
d) minus income of foreign factors in Canada plus income of Canadian factors abroad -
CORRECT ANSWER: b) plus income of foreign factors in Canada minus income of
Canadian factors abroad
15. If the supply of labour increases, then the real wage will _________ and the number
of people working will __________
a) increase, increase
