1|Page
ECON 200 UOFA Final Exam Version 2 Newest 2025/
2026 Complete 100 Questions And Correct Answers
(Verified Answers) |Already Graded A+||Newest
Exam!!!!
The underground economy can be described as:
(a) economic production that includes mining.
(b) economic activity that is hidden from the government to
avoid taxes or because the activity is illegal.
(c) production of infrastructure that spurs growth in the rest
of the economy.
(d) production of intermediate goods and services. -
ANSWER-economic activity that is hidden from the
government to avoid taxes or because the activity is illegal
How is GDP measured?
(a) GDP is measured by adding the quantities of goods
and services produced in a given year.
(b) GDP is measured by adding up all the intermediate
sales throughout the year.
(c) GDP is measured using stock market values, or stock
prices.
,2|Page
(d) GDP is measured by adding the prices of final goods
and services produced throughout the economy in a given
time period. - 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 in GDP?
(a) Hamburger buns bought by McDonald's for making Big
Macs.
(b) A used economics textbook.
(c) A pair of jeans you purchase from Old Navy.
(d) An old painting you buy at an auction. - ANSWER-a
pair of jeans you purchase from old navy
The largest component of American GDP is: _________.
(a) income
(b) profits
(c) investment
(d) consumption - ANSWER-consumption
,3|Page
___________ causes nominal GDP to rise; but
___________ causes real GDP to rise.
(a) inflation, a decrease in production
(b) inflation, an increase in production
(c) deflation, a decrease in production
(d) deflation, an increase in production - ANSWER-
inflation, an increase in production
31) Suppose the relevant population (non-institutionalized,
at least age 16) of Wildcat Nation is 10,000. Of this
population, 5,000 are employed, 2,000 have never worked
and are not looking for work, 2,000 are not working and
are looking for work, and 1,000 have retired.
(a) What is the size of the labor force in Wildcat Nation? -
ANSWER-7,000
31) Suppose the relevant population (non-institutionalized,
at least age 16) of Wildcat Nation is 10,000. Of this
population, 5,000 are employed, 2,000 have never worked
and are not looking for work, 2,000 are not working and
are looking for work, and 1,000 have retired.
, 4|Page
(b) What is the unemployment rate in Wildcat Nation? -
ANSWER-: 2,000/7,000 = 28.5%
(31) Suppose the relevant population (non-
institutionalized, at least age 16) of Wildcat Nation is
10,000. Of this population, 5,000 are employed, 2,000
have never worked and are not looking for work, 2,000 are
not working and are looking for work, and 1,000 have
retired.
(c) What is Wildcat Nations's labor force participation rate?
- ANSWER-Answer: 7,000/10,000 = 70%
(a) If the number of discouraged workers increases, what
happens to the labor force participation rate? - ANSWER-
Drops (fewer workers either employed or unemployed)
(b) If the number of discouraged workers increases, what
happens to the unemployment rate? - ANSWER-Drops
(these people are no longer counted as unemployed)
Suppose the relevant population (non-institutionalized, at
least age 16) of Sierra Vista, AZ is 6,000. Of this
population, 3,000 are employed, 1,000 have never worked
and are not looking for work, 1,000 are not working and
are looking for work, and 1,000 have retired.
ECON 200 UOFA Final Exam Version 2 Newest 2025/
2026 Complete 100 Questions And Correct Answers
(Verified Answers) |Already Graded A+||Newest
Exam!!!!
The underground economy can be described as:
(a) economic production that includes mining.
(b) economic activity that is hidden from the government to
avoid taxes or because the activity is illegal.
(c) production of infrastructure that spurs growth in the rest
of the economy.
(d) production of intermediate goods and services. -
ANSWER-economic activity that is hidden from the
government to avoid taxes or because the activity is illegal
How is GDP measured?
(a) GDP is measured by adding the quantities of goods
and services produced in a given year.
(b) GDP is measured by adding up all the intermediate
sales throughout the year.
(c) GDP is measured using stock market values, or stock
prices.
,2|Page
(d) GDP is measured by adding the prices of final goods
and services produced throughout the economy in a given
time period. - 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 in GDP?
(a) Hamburger buns bought by McDonald's for making Big
Macs.
(b) A used economics textbook.
(c) A pair of jeans you purchase from Old Navy.
(d) An old painting you buy at an auction. - ANSWER-a
pair of jeans you purchase from old navy
The largest component of American GDP is: _________.
(a) income
(b) profits
(c) investment
(d) consumption - ANSWER-consumption
,3|Page
___________ causes nominal GDP to rise; but
___________ causes real GDP to rise.
(a) inflation, a decrease in production
(b) inflation, an increase in production
(c) deflation, a decrease in production
(d) deflation, an increase in production - ANSWER-
inflation, an increase in production
31) Suppose the relevant population (non-institutionalized,
at least age 16) of Wildcat Nation is 10,000. Of this
population, 5,000 are employed, 2,000 have never worked
and are not looking for work, 2,000 are not working and
are looking for work, and 1,000 have retired.
(a) What is the size of the labor force in Wildcat Nation? -
ANSWER-7,000
31) Suppose the relevant population (non-institutionalized,
at least age 16) of Wildcat Nation is 10,000. Of this
population, 5,000 are employed, 2,000 have never worked
and are not looking for work, 2,000 are not working and
are looking for work, and 1,000 have retired.
, 4|Page
(b) What is the unemployment rate in Wildcat Nation? -
ANSWER-: 2,000/7,000 = 28.5%
(31) Suppose the relevant population (non-
institutionalized, at least age 16) of Wildcat Nation is
10,000. Of this population, 5,000 are employed, 2,000
have never worked and are not looking for work, 2,000 are
not working and are looking for work, and 1,000 have
retired.
(c) What is Wildcat Nations's labor force participation rate?
- ANSWER-Answer: 7,000/10,000 = 70%
(a) If the number of discouraged workers increases, what
happens to the labor force participation rate? - ANSWER-
Drops (fewer workers either employed or unemployed)
(b) If the number of discouraged workers increases, what
happens to the unemployment rate? - ANSWER-Drops
(these people are no longer counted as unemployed)
Suppose the relevant population (non-institutionalized, at
least age 16) of Sierra Vista, AZ is 6,000. Of this
population, 3,000 are employed, 1,000 have never worked
and are not looking for work, 1,000 are not working and
are looking for work, and 1,000 have retired.
