ECON 200 UOFA Final Exam Version 2
ECON 200 UOFA FINAL EXAM VERSION 2 NEWEST 2025
COMPLETE 100 QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||BRAND NEW!!
Repeated attempts by the US Treasury Department to introduce a $1 coin have met with strong
public resistance. The public simply won't carry the $1 coin around even though it would save
the government billions of dollars (since $1 coins last much longer than $1 bills). What concept
from behavioral economics helps to explain this? - ANSWER-The status quo bias
The following questions "Would you rather have a 20% chance of mortality or an 80% chance of
survival?" is an example of... - ANSWER-Framing
The Allais paradox is famous because it is designed to show - ANSWER-Preferance reversals
Can actual GDP exceed potential GDP? Discuss. - ANSWER-Yes, during an economic boom the
intersection of AD and SRAS > LRAS
A plastic manufacturer sells plastic to a bottler for 5 cents. The bottler takes the plastic and
makes it into a 2-litre bottle that they sell to a soda company for 15 cents. The soda company
fills the bottle with diet cola and sells it to a retailer for 50 cents. The retailer then sells the diet
cola for $1.49. A consumer buys the diet cola. How much does GDP increase? - ANSWER-$1.49
Can actual GDP be below potential GDP? Discuss. - ANSWER-Yes, during an economic recession
the intersection of AD and SRAS < LRAS
Which of the following would most likely be defined as a final good or service? - ANSWER-A
personal computer
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, ECON 200 UOFA Final Exam Version 2
Which of the following is included in determining Gross Domestic Product? - ANSWER-The
purchase of a new car
The underground economy can be described as: - ANSWER-Economic activity that is hidden
from the government to avoid taxes or because the activity is illegal
How is GDP measured? - ANSWER-GDP is measured by adding the prices of final goods and
services produced throughout the economy in a given time period
Which of the following is counted as GDP? - ANSWER-A pair of jeans you purchase from old
navy
The largest component of American GDP is: - ANSWER-Consumption
______________ causes nominal GDP to rise; but __________________ cause real GDP to rise -
ANSWER-Inflation; an increase in production
Bob is a highly qualified worker who is unemployed but looking for work. His expertise is in a
small field and new jobs only open up sporadically. While he is waiting for one of those
openings he is considered: - ANSWER-Fritionally unemployed
If a jobless person who had given up searching suddenly resumed active search for paying jobs-
but had not yet found any-the unemployment rate would... - ANSWER-Rise
If cyclical unemployment is eliminated in the economy, then: - ANSWER-The economy is
considred to be at full employment
The unemployment rate reported by the media is known as U-3. Broader measures of
unemployment include people who are marginally connected to the workforce. Those broader
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, ECON 200 UOFA Final Exam Version 2
measures indicate that the true level of unemployment and underemployment is close to -
ANSWER-20%
Bob's assembly line job has been replaced by robots, and Bob lacks abilities and skills required
to attain other jobs. He is considered... - ANSWER-Structurally unemployed
An increase in unemployment insurance payments would, in effect, _________________ the
lenght of time spent searching for a job, which would increase _____________ unemployment -
ANSWER-Increase, frictional
Alex is unemployed but looing for work. For many years he worked as a video store manager for
BLockbuster, but since 2013 he has been unable to find a similar position because his poisiton is
now redundant. He is considered - ANSWER-Structurally unemployed
AFter many months a job seeker gives up and stops looking for work. He is now considered -
ANSWER-A discouraged worker
The unemployment rate reported by the media is known as U-3. This unemployment rate does
not take into account: - ANSWER-Discouraged workers
One of the problems in measuring inflation over time is that: - ANSWER-Changes in
consumption patters and innovations make comparison across years problematic
If an economy is expierencing cost-push inflation what will happen to prices and economic
output? - ANSWER-Prices will rise and output will fall
Which of these films is the most succesful film in box office history in real terms? - ANSWER-
Gone with the Wind
3|Page
ECON 200 UOFA FINAL EXAM VERSION 2 NEWEST 2025
COMPLETE 100 QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||BRAND NEW!!
Repeated attempts by the US Treasury Department to introduce a $1 coin have met with strong
public resistance. The public simply won't carry the $1 coin around even though it would save
the government billions of dollars (since $1 coins last much longer than $1 bills). What concept
from behavioral economics helps to explain this? - ANSWER-The status quo bias
The following questions "Would you rather have a 20% chance of mortality or an 80% chance of
survival?" is an example of... - ANSWER-Framing
The Allais paradox is famous because it is designed to show - ANSWER-Preferance reversals
Can actual GDP exceed potential GDP? Discuss. - ANSWER-Yes, during an economic boom the
intersection of AD and SRAS > LRAS
A plastic manufacturer sells plastic to a bottler for 5 cents. The bottler takes the plastic and
makes it into a 2-litre bottle that they sell to a soda company for 15 cents. The soda company
fills the bottle with diet cola and sells it to a retailer for 50 cents. The retailer then sells the diet
cola for $1.49. A consumer buys the diet cola. How much does GDP increase? - ANSWER-$1.49
Can actual GDP be below potential GDP? Discuss. - ANSWER-Yes, during an economic recession
the intersection of AD and SRAS < LRAS
Which of the following would most likely be defined as a final good or service? - ANSWER-A
personal computer
1|Page
, ECON 200 UOFA Final Exam Version 2
Which of the following is included in determining Gross Domestic Product? - ANSWER-The
purchase of a new car
The underground economy can be described as: - ANSWER-Economic activity that is hidden
from the government to avoid taxes or because the activity is illegal
How is GDP measured? - ANSWER-GDP is measured by adding the prices of final goods and
services produced throughout the economy in a given time period
Which of the following is counted as GDP? - ANSWER-A pair of jeans you purchase from old
navy
The largest component of American GDP is: - ANSWER-Consumption
______________ causes nominal GDP to rise; but __________________ cause real GDP to rise -
ANSWER-Inflation; an increase in production
Bob is a highly qualified worker who is unemployed but looking for work. His expertise is in a
small field and new jobs only open up sporadically. While he is waiting for one of those
openings he is considered: - ANSWER-Fritionally unemployed
If a jobless person who had given up searching suddenly resumed active search for paying jobs-
but had not yet found any-the unemployment rate would... - ANSWER-Rise
If cyclical unemployment is eliminated in the economy, then: - ANSWER-The economy is
considred to be at full employment
The unemployment rate reported by the media is known as U-3. Broader measures of
unemployment include people who are marginally connected to the workforce. Those broader
2|Page
, ECON 200 UOFA Final Exam Version 2
measures indicate that the true level of unemployment and underemployment is close to -
ANSWER-20%
Bob's assembly line job has been replaced by robots, and Bob lacks abilities and skills required
to attain other jobs. He is considered... - ANSWER-Structurally unemployed
An increase in unemployment insurance payments would, in effect, _________________ the
lenght of time spent searching for a job, which would increase _____________ unemployment -
ANSWER-Increase, frictional
Alex is unemployed but looing for work. For many years he worked as a video store manager for
BLockbuster, but since 2013 he has been unable to find a similar position because his poisiton is
now redundant. He is considered - ANSWER-Structurally unemployed
AFter many months a job seeker gives up and stops looking for work. He is now considered -
ANSWER-A discouraged worker
The unemployment rate reported by the media is known as U-3. This unemployment rate does
not take into account: - ANSWER-Discouraged workers
One of the problems in measuring inflation over time is that: - ANSWER-Changes in
consumption patters and innovations make comparison across years problematic
If an economy is expierencing cost-push inflation what will happen to prices and economic
output? - ANSWER-Prices will rise and output will fall
Which of these films is the most succesful film in box office history in real terms? - ANSWER-
Gone with the Wind
3|Page
