Exam (elaborations)
ECO 202 Questions And Answers (100% Accurate)
- Course
- Institution
ECO 202 Questions And Answers (100% Accurate)
[Show more]
Content preview
ECO 202 Questions And Answers (100% Accurate)Consumption spending is $4.5 billion, gross private domestic investment is $3
billion,
and government purchases are $2 billion. If GDP is $14 billion, which of the
following could be true regarding exports and imports in the economy?
A) Exports are $4.5 billion, and imports are $2 billion.
B) Exports are $6 billion, and imports are $8.5 billion.
C) Exports are $9 billion, and imports are $6 billion.
D) Exports are $15 billion, and imports are $10.5 billion. Right Ans - D)
GDP = C + I + G + NX. The question gives us numbers for GDP, C, I, and G.
14 = 4.5 + 3 + 2 + NX 14 - 4.5 - 3 - 2 = NX 4.5 = NX.
NX = exports - imports, so we are looking for values for exports and imports in
the answers where the difference is $4.5 billion. The only answer that gives us
exports - imports = $4.5 billion is D (15 - 10.5 = 4.5).
Which of the following is true about the consumer price index?
A) It accounts for people switching to goods whose prices have fallen.
B) It assumes that consumers purchase the same amount of each product in
the market basket each month.
C) It frequently updates the price changes of new products added to the
market basket, as these have a tendency to fall.
D) It filters out the part of price increases that occurs because of quality
improvements in products. Right Ans - B) The CPI is calculated using a
fixed basket of goods, which is only updated every two years. So, month to
month, the calculation assumes consumers are not changing the amounts of
what they are buying.
If you invest $10,000 in a bond that earns 8% interest per year, how many
years will it
take to double your money?
A) 1 year and 3 months
B) 2 years and 6 months
C) 8 years
D) 8 years and 9 months Right Ans - D) We use the Rule of 70 to answer
this question: Time to double money = 70/interest rate. 70/8 = 8.75, which
comes out to 8 years and 9 months.
, Which factors explain labor productivity?
A) technological change; the quantity of labor per hour worked
B) diminishing returns; the quantity of labor per hour worked
C) diminishing returns; the quantity of capital per hour worked
D) technological change; the quantity of capital per hour worked Right Ans
-D
Which of the following are not considered part of government purchases?
A) welfare benefits
B) teachers' salaries paid by a local government
C) a tank purchased by the federal government
D) a bridge purchased by the state government Right Ans - A
Someone who is available for work but has not actively looked for work in the
previous
four weeks would be classified as
A) employed.
B) unemployed.
C) not in the labor force.
D) not in the working-age population. Right Ans - C
Which of the following price indices comes closest to measuring the cost of
living of the
typical household?
A) GDP deflator
B) producer price index
C) consumer price index
D) household price index Right Ans - C
Which of the following increases labor productivity?
A) an increase in the aggregate hours of work
B) an increase of the quantity of labor
C) inventions of new machinery, equipment, or software
D) a decline in the health of the population Right Ans - C
What two factors are the keys to determining labor productivity?
A) the business cycle and the growth rate of real GDP
B) the growth rate of real GDP and the interest rate
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Zendaya. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81531 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now