Navigation » List of Schools » Prince George Community College » Economics » Econ 1030 – Principles of Microeconomics » Summer 2021 » Final Exam
Below are the questions for the exam with the choices of answers:
Question #1
A Creative Destruction
B Scarcity
C Health
D Security
Question #2
A a consumer surplus of $ 9 and Nathan experiences a producer surplus of $3
B a producer surplus of $ 9 and Nathan experiences a consumer surplus of $ 3
C a consumer surplus of $12 and Nathan experiences a producer surplus of $3
D a producer surplus of $ 12 and Nathan experiences a producer surplus of $12
Question #3
A If I buy a pizza, I will not be able to afford a movie.
B The land a Kansas farmer plants in wheat is not available for corn production.
C A growing economy can produce more consumer goods and more capital goods at the same time.
D The production of more military goods means fewer resources are available for civilian goods.
Question #4
A When government gives Lipton Tea a subsidy, the supply of tea will increase
B When a study finds fish is healthy for consumers, the demand curve for fish shifts to the left.
C When corn prices increase, farmers will increase supply of wheat
D When price of paper increases, supply for paperback books will increase
Question #5
A Operational lag
B Recognition lag
C Administrative lag
D All of the above are characteristic of monetary policy.
Question #6
A The rate that the federal government requires banks to charge to retail customers.
B The rate that the federal government pays on the bonds it sells to the public.
C The rate that the bank pays to the federal government for money it borrows from the Fed
D The rate that one bank charges to another for loans, sometimes just held overnight.
Question #7
A Business would contract operations because they become less profitable (ceteris paribus), thus shifting the AS curve to the left.
B Businesses would purchase more capital goods because their net rate of return on investment would increase, thus shifting the AD curve to the left.
C Consumers would buy more cars, houses and other “big ticket” items that are usually bought “on time,” thus shifting the AD curve to the right.
D All of the above.
Question #8
A Capital.
B Labor.
C Land.
D Entrepreneur.
Question #9
A Raising the Discount Rate
B Raising the reserve requirement.
C Buying bonds in the open market.
D All of the above are intended to fight recession.
Question #10
A Vegetables bought by a restaurant owner from a wholesale food distributor.
B Paint purchased by Toyota to paint their new fleets.
C A PGCC student buys a new Economics textbook.
D Jet fuel bought by American airlines to power its fleet of airplanes
Question #11
A Selling bonds
B Raising taxes
C Lowering taxes
D Printing money
Question #12
A An administrative lag
B A recognition lag
C Crowding out
D An operational lag
Question #13
A 16.70%
B 20%
C 83.30%
D 10.00%
Question #14
A A global health pandemic
B An increase in the US labor force
C Discovery of new oil deposits in Texas
D Development of a new fertilizer for corn
Question #15
A Opportunity cost of 1 ton of wheat in Scoob is 0.33 tons of rice
B Opportunity cost of 1 ton of rice in Widgland is 0.5 wheat.
C Opportunity cost of 1 ton of rice is Scoob is 3 tons of wheat.
D Opportunity cost of 1 ton of wheat in Widgland is 0.5 of rice
Question #16
A William purchases 100 shares of Amazon stock.
B Paul paid rent of $12,000 for his apartment in Maryland, in 2019
C Boeing (a company based in Chicago) sells 10 airplanes to Norway
D Luigi, a foreign investor in New York, produces furniture worth $ 200,000 in 2019
Question #17
A If the government sets a price floor for widgets at $ 15 the intervention will have no effect on the market
B If the government sets the price floor for widgets at $ 25 price there will be surplus of widgets
C If the price ceiling is set at $ 15 there will be a surplus of Widgets in the market
D None of the above
Question #18
A M2 money supply decreased
B M1 money supply increased
C M2 money supply increased
D M2 was unaffected
Question #19
A Decrease by exactly $ 10 billion
B Increase by exactly $ 10 billion
C Decrease by more than $ 10 billion
D Increase by more than $ 10 billion
Question #20
A There was inflation in 2019
B There was contractionary fiscal policy in 2019
C There was a budget surplus in 2019
D There was a budget deficit in 2019
Question #21
A When oil prices increase due to war in the gulf this will cause demand pull inflation
B If Jane gets a wage increase of 4% but inflation is 5%, her real income decreases
C John is a banker on a fixed income, this means he will not be affected by high inflation rates
D None of the above
Question #22
A A hurricane destroys a production plant causing the owner of the plant to spend more money rebuilding
B Increase in the price of sugar raises the price paid by consumers of soda, thereby disadvantaging these consumers
C Pollution by a coal mining plant causes a farmer to spend more money on fertilizer to improve his crop
D Smoking harms the health of the smoker
Question #23
A When the dollar appreciates net exports rise.
B Higher retaliatory tariffs, by China, will discourage Chinese consumption of our exports and that will hurt employment in the US
C If the dollar depreciated relative the Euro, US goods will be cheaper for people in Europe
D The rise in price level in the US reduces US net exports
Question #24
A Add $ 4 trillion to $24 trillion because imports are used as inputs in the production of other goods in the US
B Ignore the $ 4 trillion because exports have already been included in the $ 24 trillion
C Subtract $4 trillion from $24 trillion because imports are not part of US domestic output
D None of the above
Question #25
A Purchasing bonds from commercial banks
B Raising the reserve requirement
C Raising the discount rate
D None of the above
Question #26
A A decrease in the price of dingbats which are complements to widgets
B A recession that causes incomes to decrease
C Price of steel used to produce widgets increases due to the U.S. government placing tariffs on imports from China
D The government raises taxes on firms that manufacture widgets
Question #27
A Increase taxes and government spending
B Increase government spending and decrease taxes
C Reduce taxes and government spending
D None of the above
Question #28
A A number of toy stores in a small city shut down due to stiff competition from Amazon
B Olu just bought a used car, but 2 days later the ignition will not start yet the seller had told him her car was in great condition
C Suarez owns a small tech company but the tech market is doing badly and he fails to make any profits
D Kamau is selling a bike worth $1,200 but due to the high demand in the market he sells it for $2,000.
Question #29
A Frictional unemployment
B Disguised unemployment
C Structural unemployment
D Cyclical unemployment
Question #30
A In a command economy, decisions are based on custom
B In a market economy, decisions are based on central government
C In a command economy, decisions are based on supply and demand
D In a market economy, decisions are based on supply and demand
Question #31
A Senate committee on banking and finance
B Congress
C US Treasury
D Federal Reserve System