ECO 202 Final Exam test bank

1. Suppose you have a question about some of the ECO 202 course material that you want to ask your instructor. The best way to communicate with the instructor is by... 2. Students who successfully complete this course ...

1. Suppose you have a question about some of the ECO 202 course material that you want to ask your instructor. The best way to communicate with the instructor is by... 2. Students who successfully complete this course will be able to... 3. Students who successfully complete this course will be able to... 4. The required material can be found in... 5. How will the quizzes and exams be taken? 6. What restrictions are there when taking quizzes and exams? 7. A term paper is required for this course. 8. Which one of the following statements is consistent with the course makeup policy? 9. Which one of the following statements is consistent with the course exam policy? 10. Based on the description of how grades are calculated, what would your final course grade be if your quiz average is 85, your discussion average is 100, your first exam grade is an 80, your second exam grade is a 75, and your final exam grade is a 90? 11. Suppose your course average ends up being 79.99. What is the letter grade that you will get for the course? 12. When do you have to take the final exam? 13. Which one of the following is not a distinguishing characteristic of critical thinking? 14. The process of critical thinking is useful in macroeconomics because... 15. The process of thinking critically is best described as... 16. Critical thinking about macroeconomic issues requires that you do what before analyzing the particular macroeconomic issue at hand? 17. What role do personal (or professional) values play in thinking critically about macroeconomic issues? 18. Which one of the following is not a part of the critical thinking step of gathering relevant information? 19. The critical thinking step of coming to a conclusion... 20. Which one of the following statements about the role of communication in the process of critical thinking is false? 21. What is the critical thinking issue in the story “What Do You Mean, Mr. President?” in Box 1.3? 22. Suppose that you are doing a macroeconomic research paper on whether the Federal government should balance its budget in the coming year. Suppose further that in working on that paper you are frustrated by the inability to find statistics on government spending and economic growth in other countries. This frustration suggests you are having problems with what step of the critical thinking process? 23. The process of critical thinking often involves formal and informal writing. Why do critical thinkers use both types of writing? 24. Caveat lector is... 25. The four essential economic activities are... 26. The normal boundary of the “macroeconomy” is... 27. Which one of the following is a positive statement? 28. Economics is defined in the textbook as the study of... 29. According to the text, the three major macroeconomic goals are... 30. The term used to refer to fluctuations in the level of national production is... 31. Chap 1 - Figure 1.jpg The chart above shows that, from 1960 to 2010, global economic production per capita increased by a factor of about… a 32. Making sure that a country’s currently favorable macroeconomic environment will continue into the future would be part of which macroeconomic goal? 33. The precautionary principle states that... 35. Who was the most famous classical economist? 36. The term “laissez-faire” would be applied to which type of economy? 37. Say’s Law states that demand creates its own supply. 38. Which one of the following statements is not associated with classical economics? 39. Keynesian economics argues that the main way to get an economy out of a slump is to... 40. Keynesian economics originated during what historical period? a. . 42. Monetarist economists argued that the government should primarily focus on... 43. In the synthesis of classical and Keynesian thought that developed by the 1970s, it was argued that Keynesian economic principles apply in the short run because... 44. Basic living standards issues relate to the quality of people’s... 45. Macroeconomics emphasizes the economic activities and interactions of individuals and particular organizations. 46. “Economic growth in Spain was 4% last year” is an example of a positive statement. 47. The term “well-being” refers to the broad goal of promoting the sustenance and flourishing of life. 48. Economic growth has traditionally been measured within a country by its inflation rate. 49. Living standards growth is possible even in the absence of economic growth. 50. The business (or trade) cycle refers to fluctuations in the level of national economic production. 51. John Maynard Keynes believed that the key to increasing aggregate demand is to have the government take a more active role in investment. 52. Keynesian economists prefer the use of fiscal policy over monetary policy. 53. Monetarists believe the growth of the money supply should be constantly adjusted according to the prevailing economic conditions. 54. Classical economists tend to believe that an economy will achieve full employment in the long run. 55. A downturn in economic activity lasting for two consecutive calendar quarters is referred to as… 56. An increase in the general level of prices is referred to as… 57. Labor productivity measures… 58. A population’s benefits from economic growth depend on… 59. Which one of the following is a macroeconomic question? 60. Which one of the following is not a macroeconomic question? 61. Which one of the following is a macroeconomic question? 62. Which one of the following is not a macroeconomic question? 63. In deciding whether to place economic sanctions on another country because of international political conflicts, what are the macroeconomic issues? 64. The question “Do free trade agreements lead to faster economic growth?” is... 65. The question “Did the Federal Reserve accurately predict the financial crisis of 2008?” is... 66. The question “How much of a premium would consumers be willing to pay for a solar-powered car?” is... 67. The Bureau of Economic Analysis calculates a number of different measures of inflation: the GDP Deflator, the Consumer Price Index, the Wholesale Price Index, etc. Given that, the question “According to the Bureau of Economic Analysis, what has been the average annual level of inflation (as measured by the GDP Deflator) over the past 10 years?” is... 68. The Bureau of Economic Analysis calculates a number of different measures of inflation: the GDP Deflator, the Consumer Price Index, the Wholesale Price Index, etc. Given that, the question “What is the best measure of the average annual level of inflation over the past 10 years?” is... 69. The question "What has been the effect of deflation (that is, a general fall in prices) on the income of the average Japanese worker?" is... 70. The question "Who has been hurt the worst by the deflation that Japan has experienced in recent years?" is... 71. The question "Slower economic growth increase income inequality?" is... 72. The question "Is greater income inequality a moral issue?" is... 73. Suppose that you have just acquired a chemical manufacturing company and are trying to figure out what to produce. You talk to the plant manager and discover that the company can produce formaldehyde and sulfuric acid. You also find out that the maximum amount of formaldehyde that the company can produce in a month is 1 million liters if that is all it produces, while the maximum amount of sulfuric acid it can produce in a month (again assuming that is all it produces) is 5 million liters. Given these facts, take a sheet of paper and graphically represent the company's production possibility frontier and label that frontier with the letter A. Now suppose that you invent a new process for manufacturing sulfuric acid that is more efficient so that you can produce more sulfuric acid than before but with the same amount of inputs. Given that innovation, graphically represent the company's new production possibilities frontier on the same graph you just drew and label that new frontier with the letter B. Finally, based on your graph (do not turn in the graph), which statement below most accurately describes your sketch of the frontiers A and B (both their locations and their shapes)? 74. The question "Is the price of a share of IBM stock higher today than the price of a share of Xerox stock?" is... 75. The question "Does the minimum wage result in higher unemployment?" is... 76. The question "Do most Americans believe that government is too big?" is... 77. The question "Do you like the handling of a Toyota more than a Subaru?" is... 78. The question "Do businesses primarily fail because of mismanagement?" is... ....................................................................................continued.......................................................................................................