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ECO 320 Final Exam Questions with Answers
In a command economy, the ______ either makes economic decisions itself of at least
strongly influences how the decisions are made.
Ans: Government
In a _________, mot economic decisions about what to produce, how to produce it and
whom to prove it are made by buyers and sellers.
Ans: Market-oriented economy.
The basic difference between macroeconomics and microeconomics is that:
Ans: Microeconomics is concerned with the trees (Individual markets) while macro
economics is concerned with the Forrest (aggregate Markets)
Attending college is a case where the ________________ exceeds the monetary cost.
Ans: opportunity cost
The opportunity cost of attending university is likely to include all except which of the
following?
Ans: the cost of haircuts received during the school term
The marginal benefit of a slice of pizza is the:
Ans: maximum amount that a consumer is willing to pay for the slice.
Gross domestic product equals $1.2 trillion. If consumptions equals $690 billion,
investment equals $200 billion, and government spending equals $260 billion, then:
Ans: Exports exceed imports by $50 billion.
Which of the following is included in GDP calculations?
Ans: the university tuition paid to enroll in a course
The gap between exports and imports in a nation's economy is called the ________.
Ans: Trade Balance.
To achieve a high standard of living, a nation should:
Ans: promote economic growth
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In the long run, the most important source of increase in a nations standard of living is
a:
Ans: high rate of economic growth.
Which of the following best describes the relationship between economic growth and
literacy?
Ans: Increased literacy stimulates economic growth by raising labor productivity, and as the
economy grows, people consume more education.
Reginald looked for work for six months but could not find a job to his liking. He now
spends his time at the beach. For purposes of employment he is considered:
Ans: out of the labor force
The most significant real economic cost of high unemployment is:
Ans: the potential goods and services that might have been produced but weren't.
Insofar as government public policy is concerned, the best way to battle unemployment
would be __________________.
Ans: to minimize recessions
The most commonly cited measure of inflation in the United States is:
Ans: Consumer Price Index (CPI)
One of the reasons that a rise in the price of food basket goods over time tends to
overstate the rise in a consumer's true cost of living is:
Ans: Substitution Bias
Another term used to describe negative inflation is:
Ans: deflation
Trade surpluses and trade deficits can be _______ for an economy in certain
circumstances.
Ans: either A or B
At the outset of the 21st century, most global trade took the form of:
Ans: goods, rather than services.
Why should an analyst include, among other things, airplane parts, legal services and
software, in an analysis of international economic trade?
Ans: To determine the current account balance.
Q&A
ECO 320 Final Exam Questions with Answers
In a command economy, the ______ either makes economic decisions itself of at least
strongly influences how the decisions are made.
Ans: Government
In a _________, mot economic decisions about what to produce, how to produce it and
whom to prove it are made by buyers and sellers.
Ans: Market-oriented economy.
The basic difference between macroeconomics and microeconomics is that:
Ans: Microeconomics is concerned with the trees (Individual markets) while macro
economics is concerned with the Forrest (aggregate Markets)
Attending college is a case where the ________________ exceeds the monetary cost.
Ans: opportunity cost
The opportunity cost of attending university is likely to include all except which of the
following?
Ans: the cost of haircuts received during the school term
The marginal benefit of a slice of pizza is the:
Ans: maximum amount that a consumer is willing to pay for the slice.
Gross domestic product equals $1.2 trillion. If consumptions equals $690 billion,
investment equals $200 billion, and government spending equals $260 billion, then:
Ans: Exports exceed imports by $50 billion.
Which of the following is included in GDP calculations?
Ans: the university tuition paid to enroll in a course
The gap between exports and imports in a nation's economy is called the ________.
Ans: Trade Balance.
To achieve a high standard of living, a nation should:
Ans: promote economic growth
Q&A
, Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A
In the long run, the most important source of increase in a nations standard of living is
a:
Ans: high rate of economic growth.
Which of the following best describes the relationship between economic growth and
literacy?
Ans: Increased literacy stimulates economic growth by raising labor productivity, and as the
economy grows, people consume more education.
Reginald looked for work for six months but could not find a job to his liking. He now
spends his time at the beach. For purposes of employment he is considered:
Ans: out of the labor force
The most significant real economic cost of high unemployment is:
Ans: the potential goods and services that might have been produced but weren't.
Insofar as government public policy is concerned, the best way to battle unemployment
would be __________________.
Ans: to minimize recessions
The most commonly cited measure of inflation in the United States is:
Ans: Consumer Price Index (CPI)
One of the reasons that a rise in the price of food basket goods over time tends to
overstate the rise in a consumer's true cost of living is:
Ans: Substitution Bias
Another term used to describe negative inflation is:
Ans: deflation
Trade surpluses and trade deficits can be _______ for an economy in certain
circumstances.
Ans: either A or B
At the outset of the 21st century, most global trade took the form of:
Ans: goods, rather than services.
Why should an analyst include, among other things, airplane parts, legal services and
software, in an analysis of international economic trade?
Ans: To determine the current account balance.
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