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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

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    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

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