ECO 561 Final Exam Latest University of Phoenix Tutoring

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ECO 561 Final Exam

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• 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

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• 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
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• 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

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• 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
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• 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

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• 9) A good real-world example of monopolistic
  competition is
• A. lawyers
• B. gas stations
• C. Time Warner Cable
• D. groceries store
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• 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

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• 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
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• 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

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• 15) Investing in RD 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
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  Exam Questions With Answers
• 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

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• 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 everyones standard of living in the
  same pro
• portion
• 18) An economys 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
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• 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
•  
• 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

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• 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
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• 22) Suppose the price level is fixed, the MPC is
  .5, and the GDP gap is a negative100 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

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• 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
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• 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

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• 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
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  check
• 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.

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• 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
• 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

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• 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
  561Final Exam Assignment from UOP. Other topics
  in the class are as follows
• ECO 561 Week 1 DQ 1
• ECO 561 Week 1 DQ 2
• ECO 561 Week 1 DQ 3
• ECO 561 Week 1 DQ 4
• ECO 561 Week 1 Complete
• ECO 561 Week 2 DQ 1
• ECO 561 Week 2 DQ 2
• ECO 561 Week 2 DQ 3
• ECO 561 Week 2 Market Equilibration Process Paper
• ECO 561 Week 2 Complete
• ECO 561 Week 3 DQ 1
• ECO 561 Week 3 DQ 2
• ECO 561 Week 3 Complete

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• ECO 561 Week 4 Business Proposal
• ECO 561 Week 4 Complete
• ECO 561 Week 5 DQ 1
• ECO 561 Week 5 DQ 2
• ECO 561 Week 5 DQ 3
•  
• ECO 561 Week 5 DQ 4
•  
• ECO 561 Week 5 Peer Review
•  
• ECO 561 Week 5 Complete
•  
• ECO 561 Week 6 DQ 1
•  
• ECO 561 Week 6 DQ 2

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•  
• ECO 561 Week 6 Final Proposal
•  
• ECO 561 Week 6 Complete
•  
• ECO 561 Week 6 Final Exam
• ECO 561 Week 1 Quiz or Knowledge Check (Latest)
•  
• ECO 561 Week 2 Quiz or Knowledge Check (Latest)
•  
• ECO 561 Week 3 Quiz or Knowledge Check (Latest)
•  
• ECO 561 Week 4 Quiz or Knowledge Check (Latest)
•  
• ECO 561 Week 5 Quiz or Knowledge Check (Latest)
•  
• ECO 561 Week 6 Quiz or Knowledge Check (Latest)
•  

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