UOP ECO 561 Final Exam Guide (New, 2017)

More documents

Recommendations

Info

the income and substitution effects associated with each are equal their marginal and total utilities are proportionate their total utilities are the same their marginal utilities are the same 16 Macroeconomics approaches the study of economics from the viewpoint of: governmental units the entire economy individual firms the operation of specific product and resource markets 17 Mrs. Arnold is spending all her money income by buying bottles of soda and bags of pretzels in such amounts that the marginal utility of the last bottle is 60 utils and the marginal utility of the last bag is 30 utils. The prices of soda and pretzels are $.60 per bottle and $.40 per bag respectively. It can be concluded that: Mrs. Arnold should spend more on soda and less on pretzels Mrs. Arnold is buying soda and pretzels in the utility-maximizing amounts the two commodities are substitute goods Mrs. Arnold should spend more on pretzels and less on soda 18 The simple circular flow model shows that: households are on the selling side of the resource market and on the buying side of the product market. businesses are on the selling side of both product and resource markets. households are on the buying side of both product and resource markets. businesses are on the buying side of the product market and on the selling side of the resource market. 19 Assume the reserve ratio is 25 percent and Federal Reserve Banks buy $4 million of U.S. securities from the public, which deposits this amount into checking accounts. As a result of these transactions, the supply of money is: directly increased by $4 million and the money-creating potential of the commercial banking system is increased by an additional $16 million. not directly affected, but the money-creating potential of the commercial banking system is increased by $12 million. directly increased by $4 million and the money-creating potential of the commercial banking system is increased by an additional $12 million. directly reduced by $4 million and the money-creating potential of the commercial banking system is decreased by an additional $12 million.
20 As output increases, total variable cost: increases at a constant rate increases at a decreasing rate and then at an increasing rate increases continuously at a decreasing rate increases more rapidly than does total cost 21 The two basic markets shown by the simple circular flow model are: product and resource free and controlled household and business capital goods and consumer goods 22 Countercyclical discretionary fiscal policy calls for: surpluses during both recessions and periods of demand-pull inflation deficits during both recessions and periods of demand-pull inflation surpluses during recessions and deficits during periods of demand-pull inflation deficits during recessions and surpluses during periods of demand-pull inflation 23 Because the federal government typically provides disaster relief to farmers, many farmers do not buy crop insurance even through it is federally subsidized. This illustrates: the moral hazard problem the special interest effect the adverse selection problem logrolling 24 A monopolistically competitive industry combines elements of both competition and monopoly. The monopoly element results from: the likelihood of collusion mutual interdependence product differentiation high entry barriers 25 Research for industrially advanced countries indicates that: the more independent the central bank, the higher the average annual rate of unemployment.
Page 1 and 2: UOP ECO 561 Final Exam Guide (New,
Page 3: may be either above or below the eq
Page 7: Travel by citizens of country X in

UOP ECO 561 Final Exam Guide (New, 2017)

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?