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Title: ECO 561 Final Exam

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ECO 561 Final Exam

By www.StudentWhiz.com

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1) Suppose that in the clothing market,
production costs have fallen, but the equilibrium
price and quantity purchased have both increased.
Based on this information you can conclude
that A. the supply of clothing has grown faster
than the demand for clothing B. demand for
clothing has grown faster than the supply of
clothing C. the supply of and demand for clothing
have grown by the same proportion D. there is no
way to determine what has happened to supply and
demand with this information Final Exam Answers
just a click away ECO 561 Final Exam
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2) Camille's Creations and Julia's Jewels both
sell beads in a competitive market. If at the
market price of 5, both are running out of beads
to sell (they can't keep up with the quantity
demanded at that price), then we would expect
both Camille's and Julia's to A. raise their
price and reduce their quantity supplied B. raise
their price and increase their quantity
supplied C. lower their price and reduce their
quantity supplied D. lower their price and
increase their quantity supplied 3) In which of
the following industries are economies of scale
exhausted at relatively low levels of output? A.
Aircraft production B. Automobile
manufacturing C. Concrete mixing D. Newspaper
printing
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Want more details? Download now ECO 561 Final
Exam Answers 4) The average cost curves (AVC and
ATC) should be minimized A. where MC ATC and MC
AVC B. where FC ATC and FC AVC C. where TC
starts to increase at a faster rate D. where ATC
AVC 5) If the wage rate increases, A. a purely
competitive producer will hire less labour, but
an imperfectly competitive producer will not B.
an imperfectly competitive producer will hire
less labour, but a purely competitive producer
will not C. a purely competitive and an
imperfectly competitive producer will both hire
less labour
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D. an imperfectly competitive producer may find
it profitable to hire either more or less
labour Want to see the Entire Course
Assignment..?? Click ECO 561 6) The real wage
will rise if the nominal wage A. falls more
rapidly than the general price level B. increases
at the same rate as labor productivity C.
increases more rapidly than the general price
level D. falls at the same rate as the general
price level
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7) Construction workers frequently sponsor
political lobbying in support of greater public
spending on highways and public buildings. One
reason they do this is to A. restrict the supply
of construction workers B. increase the
elasticity of demand for construction workers C.
increase the demand for construction workers D.
increase the price of substitute inputs 8)
Paying an above-equilibrium wage rate might
reduce unit labour costs by A. permitting the
firm to attract lower-quality labour B.
increasing the cost to workers of being fired for
shirking C. increasing voluntary worker
turnover D. increasing the supply of labour
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Want to check out the complete Assignment..??
Visit UOP ECO 561 Individual Assignments 9) A
good real-world example of monopolistic
competition is A. lawyers B. gas stations C. Time
Warner Cable D. groceries store
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10) An industry comprising a small number of
firms, each of which considers the potential
reactions of its rivals in making price-output
decisions, is called A. monopolistic
competition B. oligopoly C. pure monopoly D. pure
competition 11) Price is constant or given to
the individual firm selling in a purely
competitive market because A. the firm's demand
curve is downward sloping B. of product
differentiation reinforced by extensive
advertising C. each seller supplies a negligible
fraction of total supply D. there are no good
substitutes for its product
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Want to check out the complete Final Exam
Paper..?? Visit ECO 561 Final Exam Questions
Answers 12) The most important pricing strategy
for a perfectly competitive firm is A. minimizing
cost B. maximizing sales C. product
differentiation D. Advertising 13) Which of the
following is a nonprice barrier of entry? A. Huge
sunk cost B. Discounts C. Product
differentiation D. Advertising
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14) A third-degree price discrimination can be
applied to which of the following market
structures? A. A monopoly B. An oligopoly C. A
monopolistic competition D. A perfect
competition Click here to download Instantly ECO
561 Entire Course 15) Investing in RD is more
likely to occur in markets where A. firms have
monopoly power protected by regulatory
barriers B. markets are closely competitive
markets with close to zero economic profits C.
markets are oligopoly markets with strong
collusion agreements D. markets are monopolistic
competitive markets
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16) All economies of scale are achieved at the
minimum of A. average total cost B. total
cost C. average variable cost D. average fixed
cost 17) Inflation is undesirable because it A.
arbitrarily redistributes real income and
wealth B. invariably leads to hyperinflation C.
usually is accompanied by declining real GDP D.
reduces everyones standard of living in the same
pro portion
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18) An economys aggregate demand curve shifts
leftward or rightward by more than changes in
initial spending because of the A. net export
effect B. wealth effect C. real-balances
effect D. multiplier effect Click here to
download Complete Answers of ECO 561 Week 6
Complete 19) Suppose productivity rises in a
particular economy, but wages stay the same.
Other things equal, A. the demand curve will
shift leftward B. the supply curve will shift
rightward
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C. the supply curve will shift leftward D.
expenditures curve will shift rightward 20)
If personal taxes were decreased and resource
productivity increased simultaneously, the
equilibrium A. output would rise B. output would
fall C. price level would necessarily fall D.
price level would necessarily rise
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21) Expansionary fiscal policy is so named
because it A. involves an expansion of the
nation's money supply B. can only be attained by
expanding government consumption C. is aimed at
achieving greater price stability D. can motivate
an expansion of real GDP Want to see the Final
Exam Questions..?? Click ECO 561 Final Exam
Answers 22) Suppose the price level is fixed, the
MPC is .5, and the GDP gap is a negative100
billion. To achieve full-employment output
(exactly), government should A. increase
government expenditures by 100 billion B.
increase government expenditures by 50
billion C. reduce taxes by 50 billion D. reduce
taxes by 200 billion
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23) GDP understates the value of output produced
by an economy because it A. includes transactions
that do not take place in organized markets, such
as home cooked meals B. includes environmental
degradation caused by increased output
production C. excludes value added from the
underground economy, such as tips taken under the
table D. excludes the value of the wages and
benefits of government employee Click here to
download ECO 561 Week 5 Complete
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24) Other things equal, a decrease in the real
interest rate will A. shift the investment demand
curve to the right B. shift the investment demand
curve to the left C. move the economy upward
along its existing investment demand curve D.
move the economy downward along its existing
investment demand curve 25) Other things equal,
a decrease in corporate income taxes will A.
decrease the market price of real capital
goods B. have no effect on the location of the
investment demand curve C. shift the investment
demand curve to the right D. shift the investment
demand curve to the left
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26) Inflation in U.S. prices will cause A. an
increase in the demand for U.S. dollars and an
appreciation in the exchange rate B. an increase
in the supply of U.S. dollars and a depreciation
in the exchange rate C. a decrease in the demand
for U.S. dollars and a depreciation in the
exchange rate D. a decrease in the supply of U.S.
dollars and an appreciation in the exchange
rate To download the complete Questions and
Answers click ECO 561 Entire Course
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27) The quantity theory of money states that A.
the money supply divided by the velocity of money
equals the price level divided by real output B.
the money supply times the velocity of money
equals the price level times real output C. the
money supply times the price level equals real
output divided by the velocity of money D. the
money supply times the price level equals real
output times the velocity of money
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28) Suppose that U.S. prices rise 4 over the
next year while prices in Mexicorise 6.
According to the purchasing power parity theory
of exchange rates,what should happen to the
exchange rate between the dollar and the peso? A.
The dollar should depreciate. B. The peso should
appreciate. C. The peso should depreciate. D. The
dollar will be revalued. Want to download the
Questions..??Click ECO 561 Final Exam Study
Materials
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29) A rise in the domestic interest rate leads to
capital A. outflows and exchange rate
appreciation B. outflows and exchange rate
depreciation C. inflows and exchange rate
depreciation D. inflows and exchange rate
appreciation 30) A firm under monopolistic
competition will earn A. a positive economic
profit as it has some monopoly power B. zero
economic profit as it sets P MC C. zero
economic profit as its P ATC D. a positive
economic profit as it sets MC MR
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About Author
This article covers the topic for the University
Of Phoenix ECO 561 Final Exam. The author is
working in the field of education from last 5
years. This article covers the basic of ECO 561
Final Exam from UOP. Other topics in the class
are as follows
ECO 561 Week 1 DQ 1
ECO 561 Week 1 DQ 2
ECO 561 Week 1 DQ 3
ECO 561 Week 1 DQ 4