UMUC ECON201: Quiz 1 and 2 - Macroeconomics Assessment (2015)
Detailed solutions for two macroeconomics quizzes from ECON201.
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UMUC econ201 quiz 1 and 2 latest 2015
Question
Question 1. Macroeconomic topics do not usually include:
a) the profit maximizing decisions of an individual manufacturer.
b) economic growth.
c) the rate of inflation.
d) the rate of unemployment.
Question 2. When nations desire a healthy macroeconomy, they typically focus on three goals,
one of these being:
a) low inflation
b) balanced budget
c) prudent monetary policy
d) assuring competition between firms
Question 3. If macroeconomics looks at the economy as a whole, it focuses on which of the
following?
a) the division of labor
b) households
c) business firms
d) unemployed people
Question 4. In the ______________, households receive goods and services and pay firms for
them.
a) goods and services market
b) labor market
c) financial capital market
d) savings market
Question 5. Which of the following is included in the calculated Gross Domestic Product?
a) Farmer Freddie sells his second tractor to his son.
b) Suzanne buys a love seat and chair for $85 at the yard sale on the corner.
c) A local ice cream store sells $17,000 worth of cones and sundaes on July 1.
d) Mr. Farkle buys a used lawn mower from his neighbor, Mr. Sparkle.
Question 6. _______________, which can be approximated by the growth of gross domestic
product, ultimately determines the prevailing standard of living in a country.
a) Inflation
b) Trade balance
c) Economic growth
Question
Question 1. Macroeconomic topics do not usually include:
a) the profit maximizing decisions of an individual manufacturer.
b) economic growth.
c) the rate of inflation.
d) the rate of unemployment.
Question 2. When nations desire a healthy macroeconomy, they typically focus on three goals,
one of these being:
a) low inflation
b) balanced budget
c) prudent monetary policy
d) assuring competition between firms
Question 3. If macroeconomics looks at the economy as a whole, it focuses on which of the
following?
a) the division of labor
b) households
c) business firms
d) unemployed people
Question 4. In the ______________, households receive goods and services and pay firms for
them.
a) goods and services market
b) labor market
c) financial capital market
d) savings market
Question 5. Which of the following is included in the calculated Gross Domestic Product?
a) Farmer Freddie sells his second tractor to his son.
b) Suzanne buys a love seat and chair for $85 at the yard sale on the corner.
c) A local ice cream store sells $17,000 worth of cones and sundaes on July 1.
d) Mr. Farkle buys a used lawn mower from his neighbor, Mr. Sparkle.
Question 6. _______________, which can be approximated by the growth of gross domestic
product, ultimately determines the prevailing standard of living in a country.
a) Inflation
b) Trade balance
c) Economic growth
d) Education
Question 7. GDP does not directly include:
a) the value of final goods and services produced, but not sold, during a period.
b) the value of services rendered during a period.
c) the value of intermediate goods sold during a period.
d) the value of goods produced domestically and sold abroad.
Question 8. A business cycle reflects changes in economic activity, particularly real GDP. The
stages of a business cycle are:
a) expansion, trough, recession, peak
b) trough, expansion, recession, peak
c) contraction, recession, expansion, boom
d) expansion, peak, recession, trough
Question 9. Ethiopia has a GDP of $8 billion (measured in U.S. dollars) and a population of 55
million. Costa Rica has a GDP of $9 billion (measured in U.S. dollars) and a population of 4
million. Calculate per capita GDP for each country.
a) Ethiopia = $145.00 Costa Rica = $2250.00
b) Ethiopia = $1450.00 Costa Rica = $22,500.00
c) Ethiopia = $14.50 Costa Rica = $225.00
d) Ethiopia = $14.50 Costa Rica = $2250.00
Question 10. Country Able and Country Baker initially have the same real GDP per capita.
Country Able experiences no economic growth, while Country Baker grows at a sustained rate of
7 percent. In 12 years, Country Baker's GDP will be approximately ___________ that of
Country Able.
a) one-half
b) one-fourth
c) triple
d) double
Question 11. Increased investment alone will guarantee economic growth.
a) This is a true statement, because growth occurs only with savings.
b) This is a false statement, because economic growth hinges on the quality and type of
investment as well as the human capital and improvements in technology.
c) This is a false statement, because an economy must rely on capital injections from abroad.
d) This is a true statement, because money is the only resource needed for growth.
Question 12. Some recent economic research has suggested that African countries' economic
growth may have been limited by __________________ .
a) population
Question 7. GDP does not directly include:
a) the value of final goods and services produced, but not sold, during a period.
b) the value of services rendered during a period.
c) the value of intermediate goods sold during a period.
d) the value of goods produced domestically and sold abroad.
Question 8. A business cycle reflects changes in economic activity, particularly real GDP. The
stages of a business cycle are:
a) expansion, trough, recession, peak
b) trough, expansion, recession, peak
c) contraction, recession, expansion, boom
d) expansion, peak, recession, trough
Question 9. Ethiopia has a GDP of $8 billion (measured in U.S. dollars) and a population of 55
million. Costa Rica has a GDP of $9 billion (measured in U.S. dollars) and a population of 4
million. Calculate per capita GDP for each country.
a) Ethiopia = $145.00 Costa Rica = $2250.00
b) Ethiopia = $1450.00 Costa Rica = $22,500.00
c) Ethiopia = $14.50 Costa Rica = $225.00
d) Ethiopia = $14.50 Costa Rica = $2250.00
Question 10. Country Able and Country Baker initially have the same real GDP per capita.
Country Able experiences no economic growth, while Country Baker grows at a sustained rate of
7 percent. In 12 years, Country Baker's GDP will be approximately ___________ that of
Country Able.
a) one-half
b) one-fourth
c) triple
d) double
Question 11. Increased investment alone will guarantee economic growth.
a) This is a true statement, because growth occurs only with savings.
b) This is a false statement, because economic growth hinges on the quality and type of
investment as well as the human capital and improvements in technology.
c) This is a false statement, because an economy must rely on capital injections from abroad.
d) This is a true statement, because money is the only resource needed for growth.
Question 12. Some recent economic research has suggested that African countries' economic
growth may have been limited by __________________ .
a) population
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Document Details
University
University of Maryland
Subject
Economics