1) Suppose that in the clothing
market, production costs have fallen, but the equilibrium price and quantity
purchased have both increased. Based on this information you can conclude that
A.
the supply of clothing has grown faster than the demand for clothing
B.
demand for clothing has grown faster than the supply of clothing
C.
the supply of and demand for clothing have grown by the same proportion
D.
there is no way to determine what has happened to supply and demand with this
information
2) Camille's Creations and Julia's
Jewels both sell beads in a competitive market. If at the market price of $5,
both are running out of beads to sell (they can't keep up with the quantity
demanded at that price), then we would expect both Camille's and Julia's to:
A. raise their price and reduce their
quantity supplied
B. raise their price and increase
their quantity supplied
C. lower their price and reduce their
quantity supplied
D. lower their price and increase
their quantity supplied
Final Exam Answers just a click away ECO
561 Final Exam Latest
3) In which of the following
industries are economies of scale exhausted at relatively low levels of output?
A. Aircraft production
B. Automobile manufacturing
C. Concrete mixing
D. Newspaper printing
4) The average cost curves (AVC and
ATC) should be minimized
A. where MC = ATC and MC = AVC
B. where FC = ATC and FC = AVC
C. where TC starts to increase at a faster
rate
D. where ATC = AVC
To download the complete answer check ECO 561
Entire Course
5) If the wage rate increases,
A. a purely competitive producer will
hire less labour, but an imperfectly competitive producer will not
B. an imperfectly competitive producer
will hire less labour, but a purely competitive producer will not
C. a purely competitive and an
imperfectly competitive producer will both hire less labour
D. an imperfectly competitive producer
may find it profitable to hire either more or less labour
6) The real wage will rise if the
nominal wage
A. falls more rapidly than the general
price level
B. increases at the same rate as labor
productivity
C. increases more rapidly than the
general price level
D. falls at the same rate as the
general price level
Find the final exam answers here ECO
561 Final Exam Answers
7) Construction workers frequently
sponsor political lobbying in support of greater public spending on highways
and public buildings. One reason they do this is to
A. restrict the supply of construction
workers
B. increase the elasticity of demand
for construction workers
C. increase the demand for
construction workers
D. increase the price of substitute
inputs
8) Paying an above-equilibrium wage
rate might reduce unit labour costs by
A. permitting the firm to attract
lower-quality labour
B. increasing the cost to workers of
being fired for shirking
C. increasing voluntary worker
turnover
D. increasing the supply of labour
Click here to download Complete
Answers of ECO
561 Complete Assignments
9) A good real-world example of
monopolistic competition is
A. lawyers
B. gas stations
C. Time Warner Cable
D. groceries store
10) An industry comprising a small
number of firms, each of which considers the potential reactions of its rivals
in making price-output decisions, is called
A. monopolistic competition
B. oligopoly
C. pure monopoly
D. pure competition
Want to download the Complete
Assignment..?? Click ECO
561 Final Exam Questions with Answers
11) Price is constant or given to the
individual firm selling in a purely competitive market because
A. the firm's demand curve is downward
sloping
B. of product differentiation
reinforced by extensive advertising
C. each seller supplies a negligible
fraction of total supply
D. there are no good substitutes for
its product
12) The most important pricing
strategy for a perfectly competitive firm is
A.
minimizing cost
B.
maximizing sales
C.
product differentiation
D.
advertising
13) Which of the following is a
nonprice barrier of entry?
A. Huge sunk cost
B. Discounts
C. Product differentiation
D. Advertising
14) A third-degree price discrimination can be
applied to which of the following market structures?
A. A monopoly
B. An oligopoly
C. A monopolistic competition
D. A perfect competition
15) Investing in R&D is more
likely to occur in markets where
A. firms have monopoly power protected
by regulatory barriers
B. markets are closely competitive
markets with close to zero economic profits
C. markets are oligopoly markets with
strong collusion agreements
D. markets are monopolistic
competitive markets
16) All economies of scale are
achieved at the minimum of
A. average total cost
B. total cost
C. average variable cost
D. average fixed cost
17) Inflation is undesirable because
it
A. arbitrarily redistributes real
income and wealth
B. invariably leads to hyperinflation
C. usually is accompanied by declining
real GDP
D. reduces everyone’s standard of
living in the same proportion
Download
for answers here ECO 561
18) An economy’s aggregate demand
curve shifts leftward or rightward by more than changes in initial spending
because of the
A. net export effect
B. wealth effect
C. real-balances effect
D. multiplier effect
19) Suppose productivity rises in a
particular economy, but wages stay the same. Other things equal,
A. the demand curve will shift
leftward
B. the supply curve will shift
rightward
C. the supply curve will shift
leftward
D. expenditures curve will shift
rightward
Want
more details? Download now ECO
561 Final Exam Questions Answers
20) If personal taxes were
decreased and resource productivity increased simultaneously, the equilibrium
A. output would rise
B. output would fall
C. price level would necessarily fall
D. price level would necessarily rise
21) Expansionary fiscal policy is so
named because it
A. involves an expansion of the
nation's money supply
B. can only be attained by expanding
government consumption
C. is aimed at achieving greater price
stability
D. can motivate an expansion of real
GDP
22) Suppose the price level is fixed,
the MPC is .5, and the GDP gap is a negative $100 billion. To achieve
full-employment output (exactly), government should
A. increase government expenditures by
$100 billion
B. increase government expenditures by
$50 billion
C. reduce taxes by $50 billion
D. reduce taxes by $200 billion
23) GDP understates the value of
output produced by an economy because it
A. includes transactions that do not
take place in organized markets, such as home cooked meals
B. includes environmental degradation
caused by increased output production
C. excludes value added from the
underground economy, such as tips taken under the table
D. excludes the value of the wages and
benefits of government employee
24) Other things equal, a decrease in
the real interest rate will
A. shift the investment demand curve
to the right
B. shift the investment demand curve
to the left
C. move the economy upward along its
existing investment demand curve
D. move the economy downward along its
existing investment demand curve
25) Other things equal, a decrease in
corporate income taxes will
A. decrease the market price of real
capital goods
B. have no effect on the location of
the investment demand curve
C. shift the investment demand curve
to the right
D. shift the investment demand curve
to the left
26) Inflation in U.S. prices will
cause
A. an increase in the demand for U.S.
dollars and an appreciation in the exchange rate
B. an increase in the supply of U.S.
dollars and a depreciation in the exchange rate
C. a decrease in the demand for U.S.
dollars and a depreciation in the exchange rate
D. a decrease in the supply of U.S.
dollars and an appreciation in the exchange rate
Click
here to download Complete Answers of ECO
561 Final Exam Study Materials
27) The quantity theory of money
states that
A. the money supply divided by the
velocity of money equals the price level divided by real output
B. the money supply times the velocity
of money equals the price level times real output
C. the money supply times the price
level equals real output divided by the velocity of money
D. the money supply times the price
level equals real output times the velocity of money
28) Suppose that U.S. prices rise 4%
over the next year while prices in Mexicorise 6%. According to the purchasing
power parity theory of exchange rates,what should happen to the exchange rate
between the dollar and the peso?
A. The dollar should depreciate.
B. The peso should appreciate.
C. The peso should depreciate.
D. The dollar will be revalued.
29) A rise in the domestic interest rate
leads to capital
A. outflows and exchange rate
appreciation
B. outflows and exchange rate
depreciation
C. inflows and exchange rate
depreciation
D. inflows and exchange rate
appreciation
Want
to see the complete Individual Assignment Check..?? Click ECO
561 Final Exam Questions with Answers
30) A firm under monopolistic
competition will earn
A. a positive economic profit as it
has some monopoly power
B. zero economic profit as it sets P =
MC
C. zero economic profit as its P = ATC
D. a positive economic profit as it
sets MC = MR
About Author
This article covers the topic for the
University Of Phoenix ECO 561 Final Exam.
The author is working in the field of education from last 5 years. This article
covers the basic of ECO 561 Final Exam Assignment from UOP. Other topics in
the class are as follows:
Want
to check other classes..?? Visit: www.uopehelp.com
No comments:
Post a Comment