Exam (elaborations)
Econ 102 Final Exam: Questions With Solutions (100%)
- Course
- Institution
Econ 102 Final Exam: Questions With Solutions (100%)
[Show more]
Content preview
Econ 102 Final Exam: Questions With Solutions (100%)Which of the following questions would be classified as MACROECONOMIC questions?
1). What will happen to spending by consumers when the economy enters a downturn?
2). What is the relationship between a nation's unemployment rate and its inflation rate? 3). How will the price of oranges change when a late frost damages Florida's orange groves? 4). What determines a university's cost of offering a new course?
A. 1) and 2)
B. 3) and 4)
C. 1) and 4)
D. 2) and 3) Correct Ans - 1 and 2
John Maynard Keynes believed that the government should:
A. actively try to mitigate the effects of recessions by using fiscal and monetary policies.
B. not interfere with the economy but let the economy self-correct.
C. intervene only when there is a boom but let the recession run its course.
D. not use fiscal and monetary policies, as these policies have long-term adverse effects. Correct Ans - A. actively try to mitigate the effects of recessions by using fiscal and monetary policies.
If all of the households and businesses start saving more during economic hard times, then aggregate income will fall, hurting everyone in the economy. This is known as:
A. the quantity theory.
B. the crowding-out theory.
C. the paradox of thrift.
D. the permanent income hypothesis. Correct Ans - C. the paradox of thrift.
Which of the following statements is CORRECT?
A. Supply and demand cannot explain why a particular good or service becomes more expensive relative to other goods and services. B. Inflation affects only the more advanced countries, whereas less advanced countries face deflation.
C. Prices of most goods and services remained stable during the Great Depression.
D. When the economy is in recession and jobs are hard to find, inflation tends to fall. Correct Ans - D. When the economy is in recession and jobs are hard to find, inflation tends to fall.
The national accounts keep track of everything EXCEPT
A. the spending of consumers and the government.
B. the sales of producers.
C. business investment.
D. exchange rates. Correct Ans - exchange rates.
Pizza company questions: Calculated as spending on final goods and services, GDP equals ___
A. $200
B. $285
C. $250 D. $85 Correct Ans - $200
When inflation rises quickly, borrowers will _____ and lenders will _____
A. be hurt; benefit B. benefit; be hurt
C. be hurt; be hurt D. benefit; benefit Correct Ans - benefit; be hurt
Look at the figure Circular-Flow Model on the right. If the circular-flow model is in equilibrium (the sum of money flowing into each box is equal to the sum of the money flowing out of it) and there is a decrease in exports, which of the following is likely to happen?
A. a decrease in the nominal GDP
B. an increase in the real GDP
C. a decrease in the unemployment rate D. an increase in the inflation rate Correct Ans - A. a decrease in the nominal GDP
An example of investment spending is the purchase of a:
A. bond by a banker.
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 LeCrae. 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)
78998 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now