ECO/212 ECO 212 ECO212 Week 5 Final Exam Tutorial

1) Which of the following issues is an application of using macroeconomics to make a real world decision?

2) The forces that make market economies work are

3) A market is a

4) If a decrease in income increases the demand for a good, then the good is

5) Two goods are substitutes if a decrease in the price of one good

6) A likely example of substitute goods for most people would be

7) Another term for equilibrium price is

8) If, at the current price, there is a shortage of a good,

9) If there is suddenly an increase in population in North Carolina, then the average wage for North Carolina will

10) The marginal product of labor is equal to the

11) When we focus on the firm as a supplier of a good or a service, we assume that the firm is a profit maximizer. When we focus on the firm as a demander of labor, we assume that the firm's objective is to

12) What are the two types of imperfectly competitive markets?

13) Monopolistically competitive firms are typically characterized by

14) The commercial jetliner industry, consisting of Boeing and Airbus, would best be described as a (an)

15) Imperfectly competitive firms are characterized by

16) Gross domestic product serves as a measure of two things:

17) Which of the following newspaper headlines would be more closely related to what microeconomists study than to what macroeconomists study?

18) A fiscal policy can be

19) Stagflation exists when prices

20) An expansionary fiscal policy will

21) If money is used as a mechanism to hold purchasing power for a period of time, it is functioning as a

22) Inflation can be measured by the

23) Given the following information about AAA bank:

Bank Deposits $100,000

Loans $50,000

Required Reserves $20,000

Excess Reserves $30,000

What is the reserve ratio set by the Federal Reserve Bank?

24) Sally sells 40 bags of lettuce for a total of $80 at the farmers’ market.

25) Monetary neutrality implies that an increase in the quantity of money will

26) For any country, if the world price of computers is higher than the domestic price of computers without trade, that country should

27) Outflow represents the quantity of dollars

28) In the open economy macroeconomic model, net capital outflow is equal to the quantity of

29) A tariff on a product

30) Aquilonia has decided to end its policy of not trading with the rest of the world. When it ends its trade restrictions, it discovers that it is importing incense, exporting steel, and neither importing nor exporting rugs. Which groups in Aquilonia are better off as a result of the new free-trade policy?