Fall2005_Final

Fall2005_Final - Name: _ Class: _ Date: _ Final Exam...

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Name: ________________________ Class: ___________________ Date: __________ ID: A 1 Final Exam Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. When society requires that firms reduce pollution, there is a. a tradeoff because of reduced incomes to the firms' owners, workers, and customers. b. no tradeoff, since everyone benefits from reduced pollution. c. no tradeoff for society as a whole, since the cost of reducing pollution falls only on the firms affected by the requirements. d. a tradeoff only if some firms are forced to close. ____ 2. When government policies are being designed, a. there is usually a tradeoff between equity and efficiency. b. equity and efficiency goals are usually independent of each other. c. equity can usually be achieved without an efficiency loss. d. increasing efficiency usually results in more equity. ____ 3. The opportunity cost of an item is a. the number of hours needed to earn money to buy it. b. what you give up to get that item. c. usually less than the dollar value of the item. d. the dollar value of the item. Figure 2-1 ____ 4. Refer to Figure 2-1 . Which arrow shows the flow of goods and services? a. A b. B c. C d. D ____ 5. Refer to Figure 2-1 . Which arrow shows the flow of the factors of production? a. A b. B c. C d. D
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Name: ________________________ ID: A 2 Figure 2-3 ____ 6. Refer to Figure 2-3 . The economy can produce at which point or points? a. B, D, E b. A, B, D, E c. D, C d. D ____ 7. Refer to Figure 2-3 . The economy CANNOT produce at which point or points? a. A b. C c. A, C d. A, C, D, ____ 8. An American company owns a fast food restaurant in Romania. The value of goods and services it produces is included a. in both Romanian and U.S. GDP. b. partly in Romanian GDP and partly in U.S. GDP. c. in Romanian GDP, but not U.S. GDP. d. in U.S. GDP, but not Romanian GDP. ____ 9. Real GDP is the production of final goods and services valued at a. current year prices. b. constant prices. c. future year prices. d. the ratio of current year prices to constant year prices. ____ 10. Suppose that the real interest rate was 3 percent and the inflation rate was 1 percent. a. The dollar value of savings increased at 2 percent, and the value of savings measured in goods increased at 3 percent. b. The dollar value of savings increased at 1 percent, and the value of savings measured in goods increased at 2 percent. c. The dollar value of savings increased at 3 percent, and the value of savings measured in goods increased at 1 percent. d. The dollar value of savings increased at 4 percent, and the value of savings measured in goods increased at 3 percent.
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Name: ________________________ ID: A 3 ____ 11. The CPI is a measure of the overall cost of a. inputs purchased by a typical producer. b.
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This note was uploaded on 07/08/2011 for the course ECON 1102 taught by Professor N/a during the Spring '11 term at Dallas.

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Fall2005_Final - Name: _ Class: _ Date: _ Final Exam...

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