Eco 102 final Exam (1&2) Review questions,100% correct

Which of the following is classified as new capital? 2. The limit to total production capacity in the economy is set by: 3. Opportunity costs exist because: 4. Which of the following is a labor resource? ...

Which of the following is classified as new capital? 2. The limit to total production capacity in the economy is set by: 3. Opportunity costs exist because: 4. Which of the following is a labor resource? 5. Which of the following is a capital resource? 6.Which of the following is not considered by economists to be an economic review? 7. Refer to the table. If the economy is producing at production alternative C, the opportunity cost of the tenth unit of consumer goods will be: 8. Refer to the table. A total output of 3 units of capital goods and 4 units of consumer goods: 9. Refer to the diagram. Other things equal, this economy will achieve the most rapid rate of growth if it produces at: 10. Refer to the diagram. This economy will experience unemployment if it produces at point: 11. Which of the following is not a typical characteristic of a market system? 12. Which of the following is a fundamental characteristic of the market system? 13. Private Property: 14. The regulatory mechanism of the market system is: 15. Economic profits and losses: 16. The market systems answer to the fundamental question “How will the goods and services be produced?” is essentially: 17. Which of the following is not one of the 5 fundamental questions? 18. Which of the following best describes the invisible-hand concept? 19. The market system is an economic system that: 20. A market 21. With a down sloping demand curve and an up sloping supply curve for a product, a decrease in resource prices (increasing the supply) will: 22. Price floors and ceiling prices: 23. With a down sloping demand curve and an up sloping supply curve for a product, placing an excise tax on this product (decreasing the supply) will: 24. An effective price floor will: 25. A headline reads “Perfect Weather Brings Record-High Coffee Harvest.” This crease in supply situation would lead to a: 26. Two months ago, the Maryville shirt company sold 2000 shirts at $30 per shirt. Last month the company raised its price to $35 per shirt and sold 3000. Evidently the company experienced an: 27. A headline reads “Lumber Prices Up Sharply.” In a competitive market, this situation would lead to a decrease in the supply of new homes and an: 28. A news story states that, “DVDs lose their appeal as consumers switch to online streaming for movies”. In a competitive market for DVDs, this decrease in demand situation would lead to a: 29. Which of the following statements is correct? . 30. Nonrivalry and nonexcludability are the main characteristics of: 31. Which of the following is an example of a public good? 32. At the optimal quantity of a public good: 33. When there is over production of a good like when a common good is produced: 34. From an economist’s perspective, an important consideration for policies to address global warming is: 35. Sometimes, public goods whose benefits are less than their costs still get produced because: 36. NAFTA: 37. (Consider this) the greatest benefit to an economy from international trade is 38.The equilibrium price and quantity in a market usually produce allocative efficiency because: 39. Examples of command economies are 40. Economic efficiency is the primary guide in answering which of the fundamental questions in a market economy? Exam 2 1. Real GDP measures the: 2. Which of the following would an economist consider to be an investment? 3. For an economy to increase investment, it must: 4. In the short run, how will an increase in C, I, G causing an increase in aggregate demand likely to affect real GDP? - 5. Which of the following best explains why a $7 billion tax cut can lead to a $9 billion increase in consumer spending in the short run? - 6.Which of the following is included in GDP? Assume the following transactions occur within the US. 7. Which of the following is a final good or service. 8. Arthur sells $100 worth of cotton to Bob. Bob turns the cotton into cloth, which he sells to Camille for $300. Camille uses the cloth to make prom dresses that she sells to Donita for $700. Donita sells the dresses for $1,200 to kids attending prom. The total contribution to GDP of this series of transaction is: 9.Which of the following is not economic investment? 10. A price index is: 11.The growth of GDP may understate changes in the economy’s economic well being over time if the: 12.Which of the following do national income accountants consider being investment? 13. The limit to total production capacity in the economy is set by: 14. Economic growth is best defined as an increase in: 15. Growth is advantageous to a nation because it: 16.Free Trade: 17. Refer to the list. As distinct from the demand and efficiency factors of economic growth, the supply factors of economic growth are: 18.Refer to the list. As distinct from the supply factors and efficiency factor of economic growth, the demand factor(s) of economic growth is (are): 19.Refer to the list. As distinct from the supply factors and demand factor of economic growth, the efficiency factor(s) of economic growth is (are): 20. Which set of items in the list would shift an economy’s production possibilities curve outward? 21. Which set of items in the list would move an economy from a point inside its production possibilities curve to a point on its production possibilities curve? 22. Which of the following would not be expected to increase labor productivity? 23. (Consider This) Over the past several decades, the percentage of women paid in the U.S workforce has: 24.The consumer price index in an economy is 180 on year and 189 the next year. The rate of inflation in the economy that year is: 25.If the price is level is expected to increase by three percent next year and a key market interest rate is expected to increase by seven percent, the real interest rate of interest is: 26. Recurring upswings and downswings in an economy’s real GDP over time are called: (Hypothetical economy of Scoob. All figures are in millions) 27. The labor force is Scoob is: 28. The unemployment rate of Scoob is: 29. The presence of discouraged workers: 30. Part-time workers who want full-time work counted as: 31. Which individual is frictionally unemployed? 32. Which individual is structurally unemployed? 33. Which individual is cyclically unemployed? 34. Which individual would be classified as a discouraged worker? 35. Which individual would be included in the calculation of the natural unemployed rate? 36. The consumer price index was 177.1 in 2001 and 179.9 in 2002. Therefore, the rate of inflation in 2002 was about: 37. Inflation initiated by increases in wages or other resource prices is labeled. 38. If the nominal interest rate is 5% and the real interest rate is 2%, then the inflation premium is: 39.in the short run, how will an increase in aggregate demand most likely affect real GDP and the overall price level? 40.Suppose an economy in the long run equilibrium experiences a supply shock form substantially higher energy costs. In which of the following ways are real GDP and the price level most likely to change.