ECO/561 Final Exam1. Which of the following statements best describes the 12 Federal Reserve Banks?​2. Which of the following will generate a demand for country X's currency in the foreign exchange

ECO/561 Final Exam

1.  Which of the following statements best describes the 12 Federal Reserve Banks?​

2. Which of the following will generate a demand for country X's currency in the foreign exchange market?​

3 As output increases, total variable cost:​

4 ​The simple circular flow model shows that:

5 If an unintended increase in business inventories occurs at some level of GDP, then GDP:​

6 ​Pure monopolists may obtain economic profits in the long run because:

7 ​Mrs. Arnold is spending all her money income by buying bottles of soda and bags of pretzels in such amounts that the marginal utility of the last bottle is 60 utils and the marginal utility of the last bag is 30 utils. The prices of soda and pretzels are $.60 per bottle and $.40 per bag respectively. It can be concluded that:

8 ​A monopolistically competitive industry combines elements of both competition and monopoly. The monopoly element results from:

9 ​The primary gain from international trade is:

10 In order for mutually beneficial trade to occur between two otherwise isolated nations:​

11 All else equal, a large decline in the real interest rate will shift the:​

12 ​The fact that international specialization and trade based on comparative advantage can increase world output is demonstrated by the reality that:

13 If the prices of all goods and services rose, but the quantity produced remained unchanged, what would happen to nominal and real GDP?​

14 Assume the reserve ratio is 25 percent and Federal Reserve Banks buy $4 million of U.S. securities from the public, which deposits this amount into checking accounts. As a result of these transactions, the supply of money is:​

15 Normal profit is:​

16 ​Why are economists concerned about inflation?

17 ​Buyers will opt out of markets in which:

18 ​If the Federal Reserve System buys government securities from commercial banks and the public:

19 ​Macroeconomics approaches the study of economics from the viewpoint of:

20 Contractionary fiscal policy is so named because it:​

21 ​Suppose you have a limited money income and you are purchasing products A and B, whose prices happen to be the same. To maximize your utility, you should purchase A and B in such amounts that:

22 In the theory of comparative advantage, a good should be produced in that nation where:​

23 Which of the following have substantially equivalent effects on a nation's volume of exports and imports?​

24 The term "recession" describes a situation where:​

25 ​Two major virtues of the market system are that it:

26 Research for industrially advanced countries indicates that:​

27 ​Because the federal government typically provides disaster relief to farmers, many farmers do not buy crop insurance even through it is federally subsidized. This illustrates:

28 Countercyclical discretionary fiscal policy calls for:​

29 ​The two basic markets shown by the simple circular flow model are:

30 ​The business cycle depicts: