ECO 202 Final Exam Questions And
Answers 100% Pass
The purchase by a household in China of a CD produced in the United States is included in
US - answer✔Net exports
Refer to Table 8-3. Consider the data above (in billions of dollars) for an economy: Gross
domestic product (in billions of dollars) for this economy equals - answer✔$1,100
The demand for loanable funds is downward sloping because the _________ the interest rate,
the ________ the number of profitable investment projects a firm can undertake, and the
________ the quantity demanded of loanable funds. - answer✔lower, greater, greater
The nominal interest rate will be less than real interest rate when - answer✔the rate of
inflation is negative
Which of the following is likely to increase measured GDP? - answer✔Marijuana becomes
legal to grow and sell
"Household production" refers to - answer✔goods and services people produce for
themselves
Table 8-11. Consider the following data for Tyrovia, a country that produces only two
products: guns and butter.
Real GDP for Tyrovia for 2013 using 2005 at the base year equals - answer✔$690
In periods when prices are falling, on average, - answer✔real GDP will grow faster than
nominal GDP
An inflation rate of 5% between 2013 and 2014 would be implied by a change in the GDP
deflator from ______ in 2013 to ________ in 2014. - answer✔260; 273
Table 8-20. Given the following information, calcuate the rate of increase in the price level
from 2012 to 2013. - answer✔8.6%
The value of what a U.S.-owned McDonald's produces in South Korea is included in the U.S.
______ and the South Korean _______. - answer✔GNP; GDP
Which of the following would increase GNP in the United States? - answer✔An increase in
the production of U.S.-owned General Motors cares made in Mexico
The Bureau of Labor Statistics would categorize a person as ________ is they were
temporarily away from their job because they were ill. - answer✔employed
Which of the following describes a situation in which the person is hurt by inflation? -
answer✔A person who is paid a fixed income during an inflationary period
The cost to firms of changing prices - answer✔is called a menu cost
If the number of unemployed workers is 19 million, the number in the working-age
population is 500 million, and the unemployment rate is 4%, how many workers are in the
labor force? - answer✔475 million
Full employment is not considered to be zero unemployment because - answer✔people do
not find jobs instantaneously
Table 9-2. Assume the market basket for the consumer price index has two products -
bread and milk - with the following values in 2006 and 2013 for price and quantity: the
Consumer Price Index for 2013 equals - answer✔116
Assume the average annual CPI values for 2012 and 2013 were 207.3 and 215.3,
respectively. What was the percent increase in the CPI between these two years? -
answer✔3.86
If the minimum wage is set above the market wage, - answer✔unemployment will rise.
If you want to earn a real interest rate of 3% on money you lend, and you expect that
inflation will be 2%, what nominal rate of interest will you charge? - answer✔5%
The natural rate of unemployment is the amount of unemployment - answer✔equal to
frictional plus structural unemployment
Establishing a state employment agency that speeds up the process of matching
unemployed workers with unfilled jobs is an attempt to lower - answer✔frictional
unemployment
Table 9-14. The real average hourly earnings for 1965 in 1982-1984 dollars equal -
answer✔$8.28
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