Question 1

Which of the following best describes the concept of opportunity cost?

Accepted Answer

The value of the next best alternative that is forgone when a choice is made.

Question 2

Suppose a country can produce either 100 units of wheat or 200 units of corn with its available resources. What is the opportunity cost of producing 1 unit of wheat?

Accepted Answer

$$\frac{2}{1}$$ units of corn

Question 3

Which of the following statements about the Production Possibility Frontier (PPF) is correct?

Accepted Answer

Points on the PPF represent efficient use of resources.

Question 4

If the demand for a product increases while the supply remains constant, what will happen to the equilibrium price and quantity?

Accepted Answer

Equilibrium price will increase and equilibrium quantity will increase.

Question 5

A government imposes a price ceiling below the equilibrium price for rental apartments. What is the most likely outcome?

Accepted Answer

A shortage of rental apartments.

Question 6

Gross Domestic Product (GDP) can be calculated using the expenditure approach. Which of the following correctly represents the expenditure approach formula?

Accepted Answer

$$GDP = C + I + G + (X - M)$$

Question 7

If nominal GDP in 2025 is $$\20$ trillion and the GDP deflator is 125$, what is the real GDP for 2025? (Use the formula $$Real\ GDP = \frac{Nominal\ GDP}{GDP\ Deflator} 	imes 100$)

Accepted Answer

$$\16$ trillion

Question 8

Which of the following is NOT included in the calculation of GDP?

Accepted Answer

The sale of used furniture at a garage sale.

Question 9

Suppose the unemployment rate is calculated as $$\frac{Number\ of\ Unemployed}{Labor\ Force} 	imes 100. If $$there are 8 million unemployed people and a labor force of 160 million, what is the unemployment rate?

Accepted Answer

$$5\%$$

Question 10

Which of the following best describes cyclical unemployment?

Accepted Answer

Unemployment that occurs during recessions due to a downturn in the business cycle.

Question 11

If the Consumer Price Index (CPI) increases from 200 to 210 over one year, what is the annual inflation rate? (Use the formula $$Inflation\ Rate = \frac{CPI_{new} - CPI_{old}}{CPI_{old}} 	imes 100)$$

Accepted Answer

$$5\%$$

Question 12

Which of the following is most likely to increase long-run economic growth?

Accepted Answer

An increase in investment in physical capital and technology.

Question 13

Suppose the marginal propensity to consume (MPC) is $$0.8. $$What is the value of the spending multiplier? (Use the formula $$Multiplier = \frac{1}{1 - MPC})$$

Accepted Answer

$$5$$

Question 14

Which of the following is a function of money?

Accepted Answer

Medium of exchange

Question 15

If the Federal Reserve wants to decrease the money supply, which of the following actions should it take?

Accepted Answer

Sell government securities in the open market.

Question 16

Suppose the reserve requirement is $$10\%$$ and a bank receives a new deposit of $$\1$$,000$$. What is the maximum amount of money the banking system can create from this deposit? (Use the formula $$Money\ Multiplier = \frac{1}{Reserve\ Ratio}$)

Accepted Answer

$$\9$$,000$

Question 17

Which of the following best describes the main goal of expansionary fiscal policy?

Accepted Answer

To increase aggregate demand and reduce unemployment.

Question 18

If the government increases its spending by $$\100$ million and the marginal propensity to consume (MPC) is 0.75$, by how much will aggregate demand increase in total? (Use the formula $$Multiplier = \frac{1}{1 - MPC}$)

Accepted Answer

$$\400$ million

Question 19

Which of the following scenarios best illustrates the concept of comparative advantage?

Accepted Answer

Country A can produce both wheat and cars more efficiently than Country B, but Country B can produce wheat at a lower opportunity cost.

Question 20

During a recession, which of the following policies would most likely be recommended by Keynesian economists to stimulate the economy?

Accepted Answer

Increase government spending and/or cut taxes.

ECON 110: Principles of Macroeconomics – Syllabus and Course Overview

Guida di studio - Domande di pratica

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