FREE AND STUDY GAMES ABOUT ECON FINAL EXAM

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FREE AND STUDY GAMES ABOUT ECON FINAL EXAM

QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

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-Guarantee passing score -111 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: The percentage change in the price level from one period to another is called

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the inflation rate.Question 2: Buyers of a product will bear the larger part of the tax burden, and sellers will bear a smaller part of the tax burden, when the

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supply of the product is more elastic than the demand for the product.Question 3: The demand for beer is more elastic than the demand for milk, so a tax on beer would have a smaller deadweight loss than an equivalent tax on milk, all else equal

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False

Question 4: Credit cards are a medium of exchange

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False

Question 5: Which of the following is a true statement?

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International data leave few doubts that a nation's GDP per person is associated with its citizens' standard of living.Question 6: Demand deposits are balances in bank accounts that depositors can access by writing a check or using a debit card.

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True Question 7: The larger the deadweight loss from taxation, the larger the cost of government programs.

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True Question 8: Currently, bank runs are a major problem for the U.S. banking system and the Fed.

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False Question 9: The present value of any future sum of money is the amount that would be needed today, at current interest rates, to produce that future sum.

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True Question 10: Historical episodes allow economists to illustrate and evaluate current economic theories.

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True Question 11: Refer to Figure 7-12. If the equilibrium price is $350, what is the producer surplus?

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$30,000

Question 12: Refer to Figure 2-12. Which of the following would most likely have caused the production possibilities frontier to shift outward from A to B?

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a general technological advance Question 13: A tax on a market with elastic demand and elastic supply will shrink the market more than a tax on a market with inelastic demand and inelastic supply will shrink the market

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True Question 14: Data from the Bureau of Labor Statistics show that the largest category of consumer spending is housing.

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True Question 15: If the Chinese nominal exchange rate (foreign currency per Chinese Yuan) does not change, but prices rise slower in China than in all other countries, then the Chinese real exchange rate

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falls.Question 16: The tax burden will fall most heavily on buyers of the good when the demand curve

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is relatively steep, and the supply curve is relatively flat.

Question 17: Total surplus is

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the total value of the good to buyers minus the cost to sellers of providing the good.Question 18: Which of the following events is consistent with an increase in the deadweight loss of the gasoline tax from $30 million to $120 million?

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The tax on gasoline increases from $0.30 per gallon to $0.60 per gallon.

Question 19: A decrease in the price of sugar will shift the supply curve for cookies to the right.

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True Question 20: Suppose there are six bait and tackle shops that sell worms in a lakeside resort town in Minnesota. If we add the respective quantities that each shop would produce and sell at each of the six bait and tackle shops when the price of worms is $2 per buc

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market supply curve.

Question 21: Which of the following actions best illustrates moral hazard?

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Roberto buys home owners insurance and then is less careful to make sure he's put out his cigarettes.Question 22: If the consumer price index was 93 in Year 1, 97 in Year 2, and 100 in Year 3, then the base year must be

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Year 3.Question 23: If someone in the United States buys a surfboard produced in Australia, then that purchase is included in both the consumption component of U.S. GDP and the net exports component of U.S. GDP.

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True Question 24: Turkey is an importer of wheat. The world price of a bushel of wheat is $7. Turkey imposes a $3-per-bushel tariff on wheat. Turkey is a price-taker in the wheat market. As a result of the tariff,

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Turkish consumers of wheat become worse off and Turkish producers of wheat become better off.Question 25: According to the principle of comparative advantage, all countries can benefit from trading with one another because trade allows each country to specialize in doing what it does best.

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True