1|Page | © copyright 2024/2025 | Grade A+
EC 211 Study for Test Questions and
Answers (100% Pass)2
If a farmer sells $10,000 worth of cereal to Kellog's, how much does that
contribute to GDP?
✓ $0
Which can be considered transfer payments?
✓ The state of Florida payment of an unemployment insurance benefit
If you purchase a newly constructed home, which component of GDP is this
purchase included in?
✓ Investment
Nominal GDP is adjusted for inflation.
✓ False
The CPI is typically a good leading indicator of the PPI.
✓ False
A problem faced when measuring the cost of living is:
Master01 | October, 2024/2025 | Latest update
, 1|Page | © copyright 2024/2025 | Grade A+
✓ The introduction of new products, quality of change, substitution bias
Banks typically advertise the...
✓ nominal interest rate
Credit cards typically advertise the...
✓ nominal interest rate
M1 Money Supply includes savings deposits but not checking deposits
✓ False
If the US wants to borrow money, it can sell bonds.
✓ True
The Federal Open Market Committee is...
✓ Part of the Federal Reserve (Central Bank)
The term double coincidence of events refers to a barter economy.
✓ True
Master01 | October, 2024/2025 | Latest update
EC 211 Study for Test Questions and
Answers (100% Pass)2
If a farmer sells $10,000 worth of cereal to Kellog's, how much does that
contribute to GDP?
✓ $0
Which can be considered transfer payments?
✓ The state of Florida payment of an unemployment insurance benefit
If you purchase a newly constructed home, which component of GDP is this
purchase included in?
✓ Investment
Nominal GDP is adjusted for inflation.
✓ False
The CPI is typically a good leading indicator of the PPI.
✓ False
A problem faced when measuring the cost of living is:
Master01 | October, 2024/2025 | Latest update
, 1|Page | © copyright 2024/2025 | Grade A+
✓ The introduction of new products, quality of change, substitution bias
Banks typically advertise the...
✓ nominal interest rate
Credit cards typically advertise the...
✓ nominal interest rate
M1 Money Supply includes savings deposits but not checking deposits
✓ False
If the US wants to borrow money, it can sell bonds.
✓ True
The Federal Open Market Committee is...
✓ Part of the Federal Reserve (Central Bank)
The term double coincidence of events refers to a barter economy.
✓ True
Master01 | October, 2024/2025 | Latest update
