Umuc Econ 201 Quiz 1 and 2 Latest 2015 (40 Questions)

  10/13/2015 TheAceStudent: UMUC ECON 201 Quiz 1 and 2 Latest 2015 (40 QUESTIONS)data:text/html;charset=utf-8,%3Ch3%20class%3D%22post-title%20entry-title%22%20itemprop%3D%22name%22%20style%3D%22margin%3A%200px… 1/3 UMUC ECON 201 Quiz 1 and 2 Latest 2015 (40 QUESTIONS)QuestionQuestion 1 Macroeconomic topics do not usually include:a) the profit maximizing decisions of an individual manufacturerb) economic growthc) the rate of inflationd) the rate of unemploymentQuestion 2 When nations desire a healthy macroeconomy, they typically focus on three goals, oneof these being:a) low inflationb) balanced budgetc) prudent monetary policyd) assuring competition between firmsQuestion 3 If macroeconomics looks at the economy as a whole, it focuses on which of thefollowing?a) the division of labor b) householdsc) business firmsd) unemployed peopleQuestion 4 In the ______________, households receive goods and services and pay firms for thema) goods and services marketb) labor marketc) financial capital marketd) savings marketQuestion 5 Which of the following is included in the calculated Gross Domestic Product?a) Farmer Freddie sells his second tractor to his sonb) Suzanne buys a love seat and chair for 85 at the yard sale on the cornerc) A local ice cream store sells 17,000 worth of cones and sundaes on July 1d) Mr Farkle buys a used lawn mower from his neighbor, Mr SparkleQuestion 6 _______________, which can be approximated by the growth of gross domesticproduct, ultimately determines the prevailing standard of living in a countrya) Inflationb) Trade balancec) Economic growthd) EducationQuestion 7 GDP does not directly include:a) the value of final goods and services produced, but not sold, during a periodb) the value of services rendered during a periodc) the value of intermediate goods sold during a periodd) the value of goods produced domestically and sold abroadQuestion 8 A business cycle reflects changes in economic activity, particularly real GDP Thestages of a business cycle are:a) expansion, trough, recession, peakb) trough, expansion, recession, peakc) contraction, recession, expansion, boomd) expansion, peak, recession, troughQuestion 9 Ethiopia has a GDP of 8 billion (measured in US dollars) and a population of 55million Costa Rica has a GDP of 9 billion (measured in US dollars) and a population of 4 million UMUC ECON 201 Quiz 1 and 2 Latest 2015 (40 QUESTIONS)  10/13/2015 TheAceStudent: UMUC ECON 201 Quiz 1 and 2 Latest 2015 (40 QUESTIONS)data:text/html;charset=utf-8,%3Ch3%20class%3D%22post-title%20entry-title%22%20itemprop%3D%22name%22%20style%3D%22margin%3A%200px… 2/3 Calculate per capita GDP for each countrya) Ethiopia = 14500 Costa Rica = 225000b) Ethiopia = 145000 Costa Rica = 22,50000c) Ethiopia = 1450 Costa Rica = 22500d) Ethiopia = 1450 Costa Rica = 225000Question 10 Country Able and Country Baker initially have the same real GDP per capita Country Able experiences no economic growth, while Country Baker grows at a sustained rate of 7 percentIn 12 years, Country Baker’s GDP will be approximately ___________ that of Country Ablea) one-half b) one-fourthc) tripled) doubleQuestion 11 Increased investment alone will guarantee economic growtha) This is a true statement, because growth occurs only with savingsb) This is a false statement, because economic growth hinges on the quality and type of investmentas well as the human capital and improvements in technologyc) This is a false statement, because an economy must rely on capital injections from abroadd) This is a true statement, because money is the only resource needed for growthQuestion 12 Some recent economic research has suggested that African countries’ economicgrowth may have been limited by __________________ a) populationb) geography and climatec) government interventionismd) technological challengesQuestion 13 A nation’s prosperity is sometimes measured in terms of ___________a) GNPCorrect Responseb) GDP per capitac) GDPd) economic outputQuestion 14 A university student who is enrolled in school fulltime and not seeking employment isconsidered:a) underemployedb) unemployable, and not counted in official statisticsc) out of the labor forced) employed in leisureQuestion 15 The unemployment rate may overestimate the true extent of unemployment if:a) many part-time employees would like to work fulltime, but are unable to get the additional workb) many people who claim to be unemployed actually work in the underground economyc) people falsely claim that they are actively seeking work in order to receive unemploymentbenefitsd) either B) or C) occursQuestion 16 A welder who quits his job and moves from Pittsburgh to Madison to try to get a better welding job is said to be:a) structurally unemployedb) underemployedc) cyclically unemployedd) frictionally unemployedQuestion 17 The effect of substitution bias is that the rise in the price of a fixed basket of goodsover time tends to ___________________ the rise in a consumer’s true cost of living, because itdoesn’t take into account that the person can substitute between goods according to changes intheir relative pricesa) overstateb) stabilize  10/13/2015 TheAceStudent: UMUC ECON 201 Quiz 1 and 2 Latest 2015 (40 QUESTIONS)data:text/html;charset=utf-8,%3Ch3%20class%3D%22post-title%20entry-title%22%20itemprop%3D%22name%22%20style%3D%22margin%3A%200px… 3/3 c) reduced) understateQuestion 18 When a price, wage, or interest rate is adjusted automatically with inflation, it is said tobe __________a) COLAedb) indexedc) semi-indexedd) nominally adjustedQuestion 19 Alex wants to measure the nominal 1998 GDP of 993 billion in 2008 dollars From thedata he gathered, he knows the deflator for 1998 is 30 and for 2008, it is 74, and that real interest inthose years was 623% and 321% respectively If he avoids making a misleading calculation, whatwill the value be?a) 2,063 billionb) 835 billionc) 430 billiond) 2,449 billionQuestion 20 If the price index moves from 107 to 110, the rate of inflation is:a) 30%b) 28%c) 3%d) 28% Quiz 2Question 1 The _____________ holds that a rise in price level will make domestic goods relativelymore expensive, ____________ exports and _______________ importsa) employment effect; discouraging; encouragingb) interest rate effect; encouraging; discouragingc) wealth effect; encouraging; discouraging d) foreign price effect; discouraging; encouragingUMUC ECON 201 Quiz 1 and 2 Latest 2015 (40 QUESTIONS)