Eco 401complete Class Work Essay example

995 Words Jul 2nd, 2014 4 Pages
ECO 401 Final Exam Guide ( 25/25 Correct Answers ) Governments protect domestic industries from foreign competition by _____________. ► Encouraging agreements like NAFTA.
► Using tariff and non tariff barriers.
► Discouraging union membership.
► Keeping the minimum wage low. 2. What would result from a depreciation of the pound on the foreign exchange market? ► An increase in the price of imported computers.
► A fall in the purchasing power of US tourists in London.
► A fall in the price of imported computers.
► An increase in the purchasing power of UK tourists overseas. 3. Disposable income is: ► Total
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► The same output level as before.
► A lower output level than before.
► The Golden Rule output level. . 9. The prices of all goods and services rise during the year: ► Real GDP may fall.
► Nominal GDP must fall. ► Nominal GDP may increase.
► Real GDP must rise.

10. Gross Domestic Product (GDP) an accurate measure of a country’s well being?
► Yes, it is the best measure of national well being.
► Yes, provided we use real GDP and not nominal GDP.
► Uncertain, depending on whether GDP is rising or falling.
► No, it is not.

11 .Economic activity moves from a trough into a period of ————— until it reaches a —————— and then into a period of ——————.
► Expansion; trough; recession
► Recession; trough; expansion
► Expansion; peak; recession
► Recession; peak; expansion 12. unemployment rate is equal to: ► Number of employed / labour force x 100.
► Number of unemployed / labour force.
► (Number of unemployed / labour force) x 100.
► None of the given options. 13 . Suppose that your income increases from $100,000 to $150,000 and your consumption increases from $80,000 to $120,000. Your Marginal Propensity to Save (MPS) is:
Marginal propensity to consume:
MPC = ΔC / ΔYd ► 0.2.
► 0.4.
► 0.6. ► 0.8. =120,000/150,000

14 Which of the following is NOT a stock variable? ► Government debt.
► Capital.
► The amount of money held by the public.
► Inventory

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