ECON 312 Week 8 Final Exam

ECON 312 Week 8 Final Exam

1. (TCO 1) Opportunity cost is best defined as (Points : 4)
2. (TCO1) Which is not a factor of production? (Points : 4)
3. (TCO1) A point outside the production possibilities curve is (Points
: 4)
4. (TCO1) A basic characteristic of a command system is that (Points :
4)
5. (TCO 2) Which is consistent with the law of demand? (Points : 4)
6. (TCO 2) A decrease in supply and a decrease in demand will (Points :
4)
7. (TCO 2) You are the sales manager for a software company and have
been informed that the price elasticity of demand for your most
popular software is less than one. To increase total revenues, you
should (Points : 4)
8. (TCO 2) The price elasticity of demand increases with the length of
the period considered because (Points : 4)
9. (TCO 2) A profit-maximizing firm in the short run will expand output
(Points : 4)
10.

(TCO 2) Which case below best represents a case of price

discrimination? (Points : 4)

11.

(TCO 3) A major reason that firms form a cartel is to

(Points : 4)
12.

(TCO 3) The main difference between the short run and the long

run is that (Points : 4)

13.

(TCO 4) A recession is a decline in (Points : 4)

14.

(TCO 4) The unemployed are those people who (Points : 4)

15.

(TCO 4) GDP is the market value of (Points : 4)

16.

(TCO 4) Nominal GDP differs from real GDP because (Points : 4)

17.

(TCO 6) When the federal government uses taxation and spending

actions to stimulate the economy it is conducting (Points : 4)

18.

(TCO 6) Refer to the graph. What combination would most likely

cause a shift from AD1 to AD3?

19.

(TCO 6) The American Recovery and Reinvestment Act of 2009

included mostly (Points : 4)

20.

(TCO 6) The lag between the time the need for fiscal action is

recognized and the time action is taken is referred to as the

(Points : 4)
21.

(TCO 5) A decrease in government spending will cause a(n)

(Points : 4)
22.

(TCO 5) The long-run aggregate supply curve is (Points : 4)

23.

(TCO 5) Which would most likely increase aggregate supply?

(Points : 4)
24.

(TCO 5) Deflation refers to a situation where (Points : 4)

25.

(TCO 6) Dissaving occurs when (Points : 4)

26.

(TCO 7) The M1 money supply is composed of (Points : 4)

27.

(TCO 7) The basic requirement of money is that it be (Points :

4)
28.

(TCO 7) The Federal Reserve System of the U.S. is the

countrys (Points : 4)
29.

(TCO 7) Which of the following is the most important function

of the Federal Reserve System? (Points : 4)

30.

(TCO 7) Money is created when (Points : 4)

31.

(TCO 7) During the financial crisis of 2007-2008, the FDIC

increased deposit insurance coverage from (Points : 4)

32.

(TCO 7) The purchase and sale of government securities by the

Fed is called (Points : 4)

33.

(TCO 7) The Federal Reserve could reduce the money supply by

(Points : 4)
34.

(TCO 8) Which country is the United States largest trading

partner in terms of volume of trade? (Points : 4)

35.

(TCO 8) The principal concept behind comparative advantage is

that a nation should (Points : 4)

36.

(TCO 8) A tariff is a (Points : 4)

37.

(TCO 8) Tariffs and quotas are costly to consumers because

(Points : 4)
38.

(TCO 8) Tariffs and import quotas would benefit the following

groups, except (Points : 4)

39.

(TCO 8) Which organization meets regularly to establish rules

and settle disputes related to international trade? (Points : 4)

40.

(TCO 9) U.S. businesses are demanders of foreign currencies

because they need them to (Points : 4)

41.

(TCO 9) In the balance of payments statement, a current

account surplus will be matched by a (Points : 4)

42.

(TCO 9) A trade deficit means a net (Points : 4)

43.

(TCO 9) Foreign exchange rates refer to the (Points : 4)

44.

(TCO 9) When the exchange rate between pounds and dollars

moves from $2 = 1 pound to $1 = 1 pound, we say that the dollar has

(Points : 4)
45.

(TCO 9) The monetary system for conducting international trade

is usually described as a system of (Points : 4)

46.

(TCO 8) a) Explain four problems with the argument that trade

protection is needed to protect American jobs. b) Describe the

economic reasons why businesses use off shoring.
47.

(TCO 6) a) Identify the four major tools of monetary policy.

b) How can monetary policy address the problem of inflation?

ECON 312 Entire Course *Principles of Economics*

ECON 312 Week 1 Quiz (2 Versions)
ECON 312 Week 1 Discussion 1 Opportunity Cost
ECON 312 Week 1 Discussion 2 Economic Systems
ECON 312 Week 2 Quiz
ECON 312 Week 2 Discussion 1 Demand, Supply & Market Equilibrium
ECON 312 Week 2 Discussion 2 Price Elasticity of Demand
ECON 312 Week 3 Assignment Anti-Trust Case

ECON 312 Week 3 Quiz (2 Versions)

ECON 312 Week 3 Discussion 1 A Firms Shut Down Decision
ECON 312 Week 3 Discussion 2 Market Structure Classification
ECON 312 Week 4 Discussion 1 GDP
ECON 312 Week 4 Discussion 2 Unemployment and Inflation
ECON 312 Week 4 Midterm (3 Versions)
ECON 312 Week 5 Quiz (2 Versions)
ECON 312 Week 5 Discussion 1 Aggregate Demand and Aggregate Supply
ECON 312 Week 5 Discussion 2 Fiscal Policy
ECON 312 Week 6 Quiz
ECON 312 Week 6 Assignment Current Macroeconomic Situation in the
U.S
ECON 312 Week 6 Discussion 1 Money and Banking
ECON 312 Week 6 Discussion 2 Monetary Policy and the Federal Reserve
ECON 312 Week 7 Quiz
ECON 312 Week 7 Discussion 1 Free Trade
ECON 312 Week 7 Discussion 2 Foreign Exchange
ECON 312 Week 8 Final Exam