ECO 372 Final Exam (Latest) - Assignment

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ECO 372 Final Exam
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• 1. News Story Workers at a car-manufacturing
  plant in Flint, Michigan are laid off because the
  economy is weak and GM cars aren't selling well.
  GM isn't sure when the plant will reopen. What
  type of unemployment describes the workers'
  situation?
• Frictional unemployment
• Structural unemployment
• Full unemployment
• Cyclical unemployment
• 2. Globalization that allows governments to
  pursue expansionary policies can be dangerous
  because it can lead to
• A reduction in the debt ceiling
• Goods price inflation
• Asset price inflation
• Goods price deflation
• Find the final exam answers here ECO 372 Final
  Exam

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• 3. Macroeconomics is
• The study of aggregate economic relationships.
• An analysis of economic reality that proceeds
  from the parts to the whole.
• The study of pricing policies of firms and the
  purchasing decisions of households.
• The study of individual choice and how that
  choice is influenced by economic forces.
• 4. Which of the following types of unemployment
  is considered to be the most controllable through
  demand-side macroeconomic policy?
• Frictional unemployment
• Cyclical unemployment
• Structural unemployment
• Natural unemployment
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• 5. If banks hold excess reserves whereas before
  they did not, the money multiplier
• Will become smaller
• Will become larger
• Might increase or might decrease
• Will be unaffected
•  
• 6. Using the expenditure approach, gross domestic
  product equals
• The sum of consumption, investment, government
  purchases, and net exports
• Gross national product minus net exports
• The sum of consumption, investment, and
  government purchases
• Gross national product
•  
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• 7. How do investment in technology and investment
  in capital differ?
• They have similar effects on output so they have
  no important differences from an economic point
  of view.
• They have the same effects on output but
  investments in technology are much more closely
  tied to the level of saving than investments in
  capital.
• They have different effects on output because of
  the positive externalities associated with
  investments in capital.
• They have different effects on output because of
  the positive externalities associate with
  investments in technology.
•  
• 8. The interest rate is the price paid for use of
  a
• Real asset.
• Financial liability.
• Financial asset.
• Real liability.
•  
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• 9. If the reserve requirement is 20 percent, and
  banks keep no excess reserves, an increase in an
  initial inflow of 100 into the banking system
  will cause an increase in the money supply of
• 50
• 100
• 500
• 20
•  
• Want help? Click to download ECO 372 Week 2
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•  
• 10. Suppose farmers can use their land to grown
  either wheat or corn. The law of supply predicts
  that an increase in the market price of wheat
  will cause
• Farmers to substitute wheat for the production of
  corn.
• Farmers to raise the production of corn and
  wheat.
• Farmers to lower the production of corn and
  wheat.
• Farmers to substitute corn for the production of
  wheat.

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• 11. According to Keynes, why might deflation
  create problems for an economy?
• In expectation of increased spending, too many
  entrepreneurs would begin businesses and most
  would fail.
• The cost of repricing goods would increase costs,
  and therefore reduce profits, for businesses and
  they would cut production.
• People would drop out of unions because unions
  would become ineffective at keeping wages of
  members high.
• Consumers might expect prices to fall further and
  cut back consumption now.
•  
• 12. When interest rates rise, people are
• More likely to borrow, that is, purchase a
  financial asset.
• More likely to borrow, that is, sell a financial
  asset.
• Less likely to borrow, that is, sell a financial
  asset.
• Less likely to borrow, that is, purchase a
  financial asset.
•  
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• 13. According to the Classical growth model, an
  economy that increases its saving will grow
• Quickly since the increase in saving will permit
  greater investment.
• Quickly since the increase in saving will permit
  more rapid technological progress.
• Slowly because interest rates will fall, causing
  investment to decline.
• Slowly because consumption and aggregate demand
  will be reduced.
•  
• 14. Suppose that consumer spending is expected to
  decrease in the near future. If output is at
  potential output, which of the following policies
  is most appropriate according to the AS/AD model?
• A reduction in government spending
• An increase in taxes
• An increase in government spending
• No change in taxes or government spending
•  
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• 15. Which of the following topics is best
  characterized as a macroeconomic issue?
• The effect of a drought on the price of corn
• The decision by Apple to produce fewer Macintosh
  computers
• The effect of an increase in federal spending on
  the unemployment rate
• The choice a student makes in selecting college
  course
•  
• 16. If income increases more rapidly than
  expected, then
• Estimates of the target rate of employment are
  likely to increase.
• The budget is less likely to be in surplus.
• Tax revenues will be lower than expected.
• Spending on income-support programs will likely
  be lower than expected.
•  
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• 17. In which of the following situations is a
  budget surplus most likely to occur?
• When fiscal policy is contractionary and the
  economy is expanding
• When fiscal policy is expansionary and the
  economy is contracting
• When fiscal policy is expansionary
• When the economy is contracting
•  
• 18. The largest expenditure component of GDP is
• Government spending
• Net exports
• Investment
• Consumption
•  
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• 19. Which of the following is the path through
  which contractionary monetary policy works?
• Money down implies interest rate up implies
  investment up implies income down.
• Money down implies interest rate down implies
  investment down implies income down.
• Money down implies interest rate up implies
  investment down implies income down.
• Money down implies interest rate down implies
  investment up implies income down.
•  

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• 20. As a country develops economically, what
  changes usually take place in the goods it
  exports?
• There is little change because comparative
  advantage does not change.
• Exports go from being diversified to being
  specialized in whatever the country finds to its
  comparative advantage.
• Services and manufactured goods decline in
  importance and are replaced by raw materials and
  agricultural products.
• Raw materials and agricultural products decline
  in importance and are replaced by services and
  manufactured goods.
•  
• Complete paper here ECO 372 Week 3 Complete
•  
• 21. What would make foreigners want to buy more
  from the United States?
• Higher tariffs
• Higher interest rates in the United States
• Inflation in the United States
• A fall in the value of the dollar in the foreign
  exchange market

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• 22. The depreciation of currency will
• Balance a trade surplus.
• Have no impact on a country's comparative
  advantage.
• Worsen a country's comparative advantage.
• Improve a country's comparative advantage.
•  
• 23. The government of Crossland wants to
  influence its exchange rate. It will do so by
  buying and selling
• Currencies in its official reserves
• Commodities
• Goods and services from the current account
• Transfers
•  
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• 24. If a country wants to prevent its exchange
  rates from falling, it could
• Place restrictions on imports
• Pursue easier monetary policy
• Remove any subsidies on exports
• Remove restrictions on imports
•  
• 25. Central banks are responsible for
• Both monetary policy and fiscal policy
• Monetary policy but not fiscal policy
• Neither monetary policy nor fiscal policy
• Fiscal policy but not monetary policy
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• 26. Quotas and tariffs can
• Never have the same effect on imports and import
  prices.
• Have the same effect on the price of domestically
  produced goods if they are set appropriately.
• Yield the same amount of tax revenue if they are
  set appropriately.
• Both increase international trade by the same
  amount if set appropriately.
•  
• 27. Between 2007 and 2009, the U.S. unemployment
  rate rose from under 5 percent to over 8 percent.
  A Keynesian economist would most likely blame
  this increase in unemployment on
• An increase in the minimum wage.
• An increase in the bargaining power of labor
  unions.
• A decline in the level of aggregate demand.
• A decline in aggregate supply.
•  
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• 28. U.S. imports involve an
• Inflow of foreign currency from foreigners to the
  U.S. economy
• Inflow of dollars from foreigners to the United
  States economy
• Outflow of foreign currency from the United
  States to foreigners
• Outflow of dollars from the United States to
  foreigners
•  
• 29. The law of demand states that quantity
  demanded of a good is inversely related to the
  price of that good. Therefore, as the price of a
  good goes
• Up, the quantity demanded goes down.
• Down, the quantity demanded stays the same.
• Up, the quantity demanded also goes up.
• Down, the quantity demanded goes down.
•  
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• 30. According to Keynes, market economies
• Never experience significant declines in
  aggregate demand.
• Are constantly experiencing significant declines
  in aggregate demand.
• May recover slowly after they experience a
  significant decline in aggregate demand.
• Quickly recover after they experience a
  significant decline in aggregate demand.
•  
• About Author
•  
• This article covers the topic for the University
  Of Phoenix ECO 372 Final Exam. The author is
  working in the field of education from last 5
  years. This article covers the basic of ECO 372
  Final Exam Assignment from UOP. Other topics in
  the class are as follows

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ECO 372 Week 1 DQ1 (3 Responses) ECO 372 Week 1
DQ 2 (3 Responses) ECO 372 Week 1 DQ 3 (3
Responses) ECO 372 Week 1 Complete ECO 372 Week 2
DQ 1 (3 Responses) ECO 372 Week 2 DQ 2 (3
Responses) ECO 372 Week 2 DQ 3 (3 Responses) ECO
372 Week 2 Fundamentals of Macroeconomics
Paper ECO 372 Week 2 Economic Forecasting
Paper ECO 372 Week 2 Complete ECO 372 Week 3 DQ 1
(3 Responses) ECO 372 Week 3 DQ 2 (3
Responses) ECO 372 Week 3 DQ 3 (3 Responses) ECO
372 Week 3 Aggregate Demand and Supply Models ECO
372 Week 3 Learning Team Weekly Reflection ECO
372 Week 3 Complete
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ECO 372 Week 4 DQ 1 (3 Responses) ECO 372 Week 4
DQ 2 (3 Responses) ECO 372 Week 4 DQ 3 (3
Responses) ECO 372 Week 4 Learning Team
Reflection ECO 372 Week 4 Federal Reserve
Presentation ECO 372 Week 4 Complete ECO 372 Week
5 DQ 1 (3 Responses) ECO 372 Week 5 DQ 2 (3
Responses) ECO 372 Week 5 DQ 3 (3 Responses) ECO
372 Week 5 International Trade and Finance
Speech ECO 372 Week 5 Fiscal Policy Paper ECO 372
Week 5 Complete ECO 372 Final Exam       Want to
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