ECO 372 Week 5 Final Examination (2017)
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ECO 372 Week 5 Final Examination
Complete the Final Examination. You are allowed one attempt to complete the examination, which is timed and must be completed in 3 hours. Results are auto graded and sent to your instructor.
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There is an increase in human capital when _____.?
?Samantha receives training in quality management after joining a new firm
?Shiroh persuades the management of her company to offer more perks to employees
?Sue rents a laser printer to teach her employees how to fix it
?Susie puts in more than 8 hours of work at her workplace every day
In the long run, a higher saving rate:?
?does not lead to a higher level of income because of deterioration in labor productivity.
?always leads to a higher level of productivity because of increasing returns to scale.
?always leads to a higher growth rate of output because of improvement in the stock of human capital.
?does not always lead to a higher growth rate of output because of diminishing returns to capital.
The Marions purchased a Persian rug worth $5,000 from an Iranian textile mill. Everything else remaining unchanged, this will:?
?increase the gross domestic product of the domestic country by $5,000.
?decrease the consumption expenditure in the domestic country by $5,000.
?decrease the net imports of the domestic country by $5,000.
?reduce the net exports of the domestic country by $5,000.
Suppose the net capital outflow from Zenovia is negative. This implies that:?
?the citizens of Zenovia are investing more in foreign assets than foreigners are investing in assets in Zenovia.
?the real interest rate in foreign countries is higher than in Zenovia.
?foreigners are not interested in buying assets in Zenovia.
?the real interest rate in Zenovia is high.
The exhibit given below shows the short-run aggregate demand and supply curves in an economy, AD1 and AS1, and the long-run aggregate supply curve, LRAS. The economy was initially in equilibrium when there was a decrease in aggregate demand, causing a shift of the aggregate demand curve from AD1 to AD2. Which of the following is true in this case??
The economy will move from point D to point A in the short run and then to point C in the long run.
?The economy will move from point B to point A in the short run and then to point C in the long run.
?The economy will move from point C to point B in the short run and then eventually to point A.
?The economy will move from point D to point C in the long run.
If the price level in an economy is 120 and the equilibrium price level is 100, _____.?
?the supply of money is likely to exceed the demand for money
?people will want to hold more money than is supplied by the central bank
?the purchasing power of money will increase
?the demand for money curve will shift to the left
?Keynesian economists believe that when an economy is in a recession, the government should:
?increase the money supply in the economy so that interest rates decline, reducing the cost of borrowing to finance new investment projects.
?decrease tax rates rather than increase government spending because households always view such tax cuts as permanent and increase their current consumption.
?increase its purchases rather than decrease taxes because households save a part of the increase in their income as a result of tax cuts.
?increase the money supply in the economy so that an excess supply of money can induce households to increase their consumption expenditure.
The buyers and sellers in the country of Perylia use corn as a medium of exchange. This means that:?
?Perylia uses commodity money.
?Perylia uses fiat money.
?corn cannot be used as a store of value or as a unit of account in Perylia.
?corn can be used as a store of value but not as a unit of account in Perylia.