ECON 511 ECON511 FINAL EXAM (Indiana Wesleyan University)

Question 2.2. Commodities that typically last three years or more are called ________. (Points : 3)

Question 3.3. The decrease in consumption and investment interest-related spending that occurs when the interest rate rises as government spending increases is called ________. (Points : 3)

Question 4.4. Industrial production is an example of a ________. (Points : 3)

Question 5.5. Expansionary monetary policy should be used if ________. (Points : 3)

Question 6.6. An increase in production costs will shift the ________. (Points : 3)

Question 7.7. Spending on the structures, equipment, and software that provide the industrial capacity to produce goods and services for all sectors of the economy is called ________. (Points : 3)

Question 8.8. At a given price level, an increase in expected profits and business confidence will shift the aggregate demand curve ________. (Points : 3)

Question 10.10. An open market purchase of government securities by the Fed would shift the aggregate demand curve leftward. (Points : 3)

Question 11.11. An appreciation of the U.S. dollar would shift the ________. (Points : 3)

Question 12.12. An increase in the costs of resources or inputs of production would shift the ________. (Points : 3)

Question 13.13. Policies adopted by a country's central bank that influence interest rates and credit conditions, which in turn influence consumer and business spending, are called ________. (Points : 3)

Question 14.14. Changes in taxes and spending by the executive and legislative branches of a country's government that can be used to either stimulate or restrain the economy are called ________. (Points : 3)

Question 15.15. In the long-run, an increase in the budget deficit and an expansionary monetary policy would ________. (Points : 3)

Question 16.16. The fraction of deposits banks are required to keep as reserves is called the ________. (Points : 3)

Question 18.18. The interest rate that banks charge on loans to their best customers is called the ________. (Points : 3)

Question 19.19. An increase in the real money supply can result from ________. (Points : 3)

Question 21.21. According to the short-run Phillips curve, if unemployment is 3.2% and inflation is 1.3%, an increase in the inflation rate might result in which of the following? (Points : 3)

Question 23.23. By definition, the purchasing power of money always drops when ________. (Points : 3)

Question 24.24. If the nominal interest rate is 9 percent and the anticipated inflation rate is 4 percent, then the real interest rate is ________. (Points : 3)

Question 26.26. The producer price index measures ________. (Points : 3)

Question 27.27. The producer price index focuses on price changes of domestically produced goods and includes services, construction, and imported goods. (Points : 3)

Question 28.28. Assume that the current price of a market basket of goods is $2,500 and the base year price of the same market basket is $1,340.  The price index is ________. (Points : 3)

Question 29.29. Which of the following price indices is designed to measure changes in the prices of goods and services purchased by a typical individual? (Points : 3)

Question 30.30. In 2013, the price for a market basket of consumer goods is $800.  In the base year, the cost of the identical market basket was $1,000.  The price index in this case is ________. (Points : 3)

Question 31.31. In January 2001, the euro/dollar exchange rate was 1.10, and in January 2002, the euro/dollar exchange rate was 1.120.  What happened to the exchange rate during this period? (Points : 3)

Question 32.32. In the foreign exchange market, the quantity of U.S. dollars demanded is a function of ________. (Points : 3)

Question 33.33. A decrease in the supply of dollars on the foreign exchange market, all else equal, will result in ________. (Points : 3)

Question 34.34. In 2003, China's control of the value of the yuan became an economic and political issue for the U.S. because of ________. (Points : 3)

Question 36.36. Assume that China has a comparative advantage in producing corn and exports corn to Japan.  We can conclude that ________. (Points : 3)

Question 37.37. If Japanese workers are more productive than French workers, then trade between Japan and France ________. (Points : 3)

Question 38.38. If Canada has a comparative advantage relative to Mexico in the production of timber, then ________. (Points : 3)

Question 41.41. Figure 7-1

Figure 7-1 shows the U.S. demand and supply for leather footwear.  

Refer to Figure 7-1. Under autarky, the consumer surplus is ________ and the producer surplus is ________. (Points : 3)

Question 42.42. Refer to Figure 7-1. Under autarky, the deadweight loss is ________. (Points : 3)

Question 43.43. Which of the following is not an example of a trade restriction? (Points : 3)

Question 44.44. The main purpose of most tariffs and quotas is to ________. (Points : 3)

Question 46.46. The amount of cost-cutting technical innovation introduced into a production process is a function of ________. (Points : 3)

Question 47.47. Increases in both labor and capital productivity will result in ________. (Points : 3)

Question 48.48. As McDonald's expanded globally, it was able to achieve ________. (Points : 3)

Question 49.49. Managers in firms with market power can ________. (Points : 3)

Question 50.50. If a good is price elastic, a decrease in its price will ________. (Points : 3)