ECN
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ECN EXAM QUESTIONS AND CORRECT ANSWERS ALREADY PASSED 
 
When the Federal Reserve decreases the reserve requirement, this will 
a. 
decrease aggregate demand. 
b. 
increase the money supply. 
c. 
increase the discount rate. 
d. 
increase legal reserves. - Answer- b 
 
All the following decrease the money supply except 
a. 
an increase in the discount rate. 
b. 
an increase in the reserve requirement. 
c. 
open market purchases by the Fed. 
d. 
an increase in the federal funds rate. - Answer- c...
ECN Exam 3 Questions with 100% Correct Answers New Update 
What's the difference between a budget deficit, a balanced budget, and a budget surplus? - Answer- When a government spends more than it collects in taxes, it is said to have a budget deficit. When a government collects more in taxes than it spends, it is said to have a budget surplus. If government spending and taxes are equal, it is said to have a balanced budget. 
 
Have spending and taxes by state and local governments in the Uni...
ECN ACTUAL EXAM QUESTIONS AND CORRECT ANSWERS ALREADY TESTED 100% PASSED 
In regression analysis, the variable that is being predicted is the _____. - Answer- dependent variable 
 
If the coefficient of correlation is a negative value, then the coefficient of determination _____. - Answer- must be positive 
 
Exhibit 14-A. The regression output from Excel is for the dependent variable living expenses and the independent variable income. 
 
ANOVA dfSSMS FRegression122765..5803 7.1242Residual1031...
ECN FINAL EXAM QUESTIONS AND REVISED ANSWERS 100% CORRECT 2024/2025 LATEST UPDATE ALREADY PASSED 
A price-discriminating monopolist will charge a higher price to individuals whose demand is: 
 
(a) more inelastic. 
(b) more elastic. 
(c) unit elastic. 
(d) unit inelastic. - Answer- (a) more inelastic. 
 
Because a monopolistic competitor has some monopoly power, advertising to increase that monopoly power makes sense as long as: 
 
(a) the marginal benefit of advertising is positive. 
(b) the ma...
ECN Midterm Exam Questions and Answers 100% Correct 
The distinction between demand and the quantity demanded is best made by saying that: 
 
(a) demand is represented graphically by a curve and quantity demanded is a point on that curve. 
(b) the quantity demanded is represented graphically by a curve and demand is a point on that curve. 
(c) the quantity demanded is in a direct relation with prices, whereas demand is in an inverse relation. 
(d) the quantity demanded is in an inverse relati...
ECN CH12 EXAM QUESTIONS WITH ALL CORRECT ANSWERS 
A change in what that effects our wealth is a movement along AD? - Answer- price level 
 
A change in anything (except price level) that effects our wealth is a _______ AD - Answer- shift in 
 
Aggregate supply curve - Answer- shows the relationship between the aggregate price level and the quantity of aggregate output in the economy. 
 
Why does the SRAS (short run agg supply) curve slope upward? - Answer- Because nominal wages are sticky in th...
ECN FINAL EXAM QUESTIONS WITH 100% CORRECT ANSWERS 
 
Microeconomic substitution is impossible for the economy as a whole because - Answer- real GDP measures the total quantity of goods and services produced by all firms in all markets. 
 
The model of aggregate demand and aggregate supply explains the relationship between - Answer- real GDP and price level 
 
Which pair of GDP growth rates and unemployment rates is realistic? - Answer- 3% and 5% 
 
Historically, as recessions have ended the un...
ECN FINAL TEST QUESTIONS WITH 100% CORRECT ANSWERS 
A firm is using 400 units of capital and 200 units of labor to produce 20,000 units of output. Capital costs $80 per unit and labor $20 per unit. The last unit of capital added 100 units of output, while the last unit of labor added 30 units of output. The firm could produce the same level of output at a lower cost by using ________capital and _________ labor - Answer- using less capital and more labor 
 
Suppose that when a firm increases its...
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ECN Exam 4 |145 Questions| With Correct Solutions, Graded A+