ECO/561 ECO561 Week 6 Final Exam_100% scored_(30/30)_A+ guranteed

Question 1

The business cycle depicts:

question2

As output increases, total variable cost:

question3

If an unintended increase in business inventories occurs at some level of GDP, then GDP:

question4

Which of the following statements best describes the 12 Federal Reserve Banks?

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question5

Mrs. Arnold is spending all her money income by buying bottles of soda and bags of pretzels in such amounts that the marginal utility of the last bottle is 60 utils and the marginal utility of the last bag is 30 utils. The prices of soda and pretzels are $.60 per bottle and $.40 per bag respectively. It can be concluded that:

question6

All else equal, a large decline in the real interest rate will shift the:

question7

Countercyclical discretionary fiscal policy calls for:

question8

In order for mutually beneficial trade to occur between two otherwise isolated nations:

question9

The fact that international specialization and trade based on comparative advantage can increase world output is demonstrated by the reality that:

question10

In the theory of comparative advantage, a good should be produced in that nation where:

question11

Assume the reserve ratio is 25 percent and Federal Reserve Banks buy $4 million of U.S. securities from the public, which deposits this amount into checking accounts. As a result of these transactions, the supply of money is:

question12

The two basic markets shown by the simple circular flow model are:

question13

Two major virtues of the market system are that it:

question14

If the Federal Reserve System buys government securities from commercial banks and the public:

question15

Research for industrially advanced countries indicates that:

question16

Why are economists concerned about inflation?

question17

If the prices of all goods and services rose, but the quantity produced remained unchanged, what would happen to nominal and real GDP?

question18

Macroeconomics approaches the study of economics from the viewpoint of:

question19

The term "recession" describes a situation where:

question20

Which of the following have substantially equivalent effects on a nation's volume of exports and imports?

question21

A monopolistically competitive industry combines elements of both competition and monopoly. The monopoly element results from:

question22

Suppose you have a limited money income and you are purchasing products A and B, whose prices happen to be the same. To maximize your utility, you should purchase A and B in such amounts that:

question23

The simple circular flow model shows that:

question24

Contractionary fiscal policy is so named because it:

question25

Which of the following will generate a demand for country X's currency in the foreign exchange market?

question26

Buyers will opt out of markets in which:

question27

Normal profit is:

question28

The primary gain from international trade is:

question29

Pure monopolists may obtain economic profits in the long run because:

question30

Because the federal government typically provides disaster relief to farmers, many farmers do not buy crop insurance even through it is federally subsidized. This illustrates: