ECON 101 chapter 5 Exam Questions with Verified Answers Already Passed
An economy that has no interaction with the rest of the world is called.
a) an isolated economy
b) a closed economy
c) a parochial economy
d) a rogue nation - Answers B) a closed economy
An economy that engages in interna...
An economy that has no interaction with the rest of the world is called.
a) an isolated economy
b) a closed economy
c) a parochial economy
d) a rogue nation - Answers B) a closed economy
An economy that engages in international trade is called
a) a cooperative economy
b) a modern economy
c) an engaged economy
d) an open economy - Answers D) an open economy
Goods and services provided by the government are called
a) government goods
b)public goods
c) free goods
d) social goods - Answers B) public goods
In an economic model, an exogenous variable is
A) a stand-in for more complicated variables.
B) determined by the model itself.
C) determined outside the model.
D) a variable that has no effect on the workings of the model. - Answers C) determined outside the
model
In an economic model, an endogenous variable is
A) a stand-in for more complicated variables.
B) determined by the model itself.
C) determined outside the model.
, D) a variable that has no effect on the workings of the model. - Answers B) determined by the model
itself
In a one-period model, government is likely to run
A) a deficit but not a surplus.
B) a surplus but not a deficit.
C) either a surplus or a deficit.
D) neither a surplus nor a deficit. - Answers D) neither a surplus nor a deficit
In a one-period economic model, the government budget constraint requires that government spending
A) = taxes + transfers.
B) = taxes + borrowing.
C) > 0.
D) = taxes. - Answers D) = taxes
Which of the following relationships does not hold in the one-period model?
A) G=T
B) Y=C+G
C) Y=zF(K,N)
D) π=Y-wN-C - Answers D) pi= Y-wN-C
Making use of an economic model is a process of
A) solving hundreds of simultaneous equations.
B) running experiments to determine how changes in the endogenous variables will change the
exogenous variables.
C) running experiments to determine how changes in the exogenous variables will change the
endogenous variables.
D) resolving inconsistencies in the actions of economic agents - Answers C) running experiments to
determine how changes in the exogenous variables will change the endogenous variables
A competitive equilibrium is a state of affairs in which
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