Practice Final Exam (Chapter 7-8-9-10-11-12) PDF - Kennesaw State University

Jon Burton - Contemporary Economic Issues Section BT Fall Semester 2024 CO - Kennesaw State University 10/18/24, 10:16 PM Practice Final Exam (chapter 7-8-9-10-11-12) - Results Attempt 1 of Unlimited Written Oct 17, 2024 10:18 PM - Oct 17, 2024 11:1...

Jon Burton - Contemporary Economic Issues Section BT Fall Semester 2024 CO - Kennesaw State University 10/18/24, 10:16 PM Practice Final Exam (chapter 7-8-9-10-11-12) - Results Attempt 1 of Unlimited Written Oct 17, 2024 10:18 PM - Oct 17, 2024 11:17 PM Your quiz has been submitted successfully. Attempt Score 0 / 100 - 0 % Overall Grade (Highest Attempt) 60 / 100 - 60 % Question 1 0 / 2.5 points A firm operating in a "Perfectly Competitive Market" has "No Market Power," which implies that the firm a) would lose all its customers if it attempted to increase price above the prevailing market price b) must decrease its price in order to increase the quantity of output sold c) faces a "horizontal demand curve" for its output d) All of the answers are correct. https://kennesaw.view.usg.edu/d2l/lms/quizzing/user/quiz_submissi…928&isInPopup=0&cfql=0&fromQB=0&fromSubmissionsList=1&ou=3289945 Page 1 of 25 Jon Burton - Contemporary Economic Issues Section BT Fall Semester 2024 CO - Kennesaw State University 10/18/24, 10:16 PM Question 2 0 / 2.5 points This graph illustrates the Lorenz Curve and Tax Concentration Curve in Country X. The value of: "Area (i)" is equal to.21; "Area (ii)" is equal to.10; and "Area (iii)" is equal to.19 The value of the Gini Coefficient in Country X is ______. a).42 b) 1 c).44 d).50 https://kennesaw.view.usg.edu/d2l/lms/quizzing/user/quiz_submissi…928&isInPopup=0&cfql=0&fromQB=0&fromSubmissionsList=1&ou=3289945 Page 2 of 25 Jon Burton - Contemporary Economic Issues Section BT Fall Semester 2024 CO - Kennesaw State University 10/18/24, 10:16 PM Question 3 0 / 2.5 points Consider a monopolist facing Demand and with Marginal Costs and Marginal Revenue as illustrated below. At which quantity deadweight loss is ZERO? a) 4,980 b) 4,130 c) 2,500 d) 0 Question 4 0 / 2.5 points Consider a monopolist facing Demand and with Marginal Costs and Marginal Revenue as illustrated below. The efficient level of output for this good is_____units. https://kennesaw.view.usg.edu/d2l/lms/quizzing/user/quiz_submissi…928&isInPopup=0&cfql=0&fromQB=0&fromSubmissionsList=1&ou=3289945 Page 3 of 25 Jon Burton - Contemporary Economic Issues Section BT Fall Semester 2024 CO - Kennesaw State University 10/18/24, 10:16 PM a) 12,500 b) 8,375 c) 6,750 d) 4,200 Question 5 0 / 2.5 points _______________ is a good that is non-excludable and non-rival in consumption a) Personal Car b) National Defense https://kennesaw.view.usg.edu/d2l/lms/quizzing/user/quiz_submissi…928&isInPopup=0&cfql=0&fromQB=0&fromSubmissionsList=1&ou=3289945 Page 4 of 25 Jon Burton - Contemporary Economic Issues Section BT Fall Semester 2024 CO - Kennesaw State University 10/18/24, 10:16 PM c) Burger from McDonalds d) Netflix Question 6 0 / 2.5 points Which of the following is NOT a market failure? a) Logrolling b) Market Power c) Moral Hazard d) Public Good Question 7 0 / 2.5 points _____________________ is refraining from acquiring knowledge when the supposed cost of educating oneself on an issue exceeds the expected potential benefit that the knowledge would provide. a) kleptocracy b) regulatory capture c) rational ignorance https://kennesaw.view.usg.edu/d2l/lms/quizzing/user/quiz_submissi…928&isInPopup=0&cfql=0&fromQB=0&fromSubmissionsList=1&ou=3289945 Page 5 of 25 Jon Burton - Contemporary Economic Issues Section BT Fall Semester 2024 CO - Kennesaw State University 10/18/24, 10:16 PM d) capital flight Question 8 0 / 2.5 points Suppose that the Lorenz Curve for the U.S. in 2019 lies completely below the Lorenz Curve for Switzerland in 2019. This implies that a) the Unemployment Rate is lower in the U.S. than in Switzerland b) incomes are distributed more equally in Switzerland than in the U.S c) Per Capita Incomes are higher in Switzerland than in the U.S d) incomes are distributed more equally in the U.S. than in Switzerland Question 9 0 / 2.5 points Which of the following is one of the sources of GOVERNMENT failure discussed in lecture? a) Profit maximization by a firm with market power b) Regulatory capture c) Market provision of a good which generates an externality https://kennesaw.view.usg.edu/d2l/lms/quizzing/user/quiz_submissi…928&isInPopup=0&cfql=0&fromQB=0&fromSubmissionsList=1&ou=3289945 Page 6 of 25 Jon Burton - Contemporary Economic Issues Section BT Fall Semester 2024 CO - Kennesaw State University 10/18/24, 10:16 PM d) Market provision of a public good Question 10 0 / 2.5 points Sidewalks, clean water, fish stocks in an open water are a a) private good b) public good c) club good d) common good Question 11 0 / 2.5 points A good is "Non-excludable" if a) consumption by one person does diminish the quantity/quality of consumption by others b) it is easy (or relatively costless) to prevent consumption by those who do not pay for the good c) it is difficult (or very costly) to prevent consumption by those who do not pay for the good d) consumption by one person does not diminish the quantity/quality of consumption by others https://kennesaw.view.usg.edu/d2l/lms/quizzing/user/quiz_submissi…928&isInPopup=0&cfql=0&fromQB=0&fromSubmissionsList=1&ou=3289945 Page 7 of 25 Jon Burton - Contemporary Economic Issues Section BT Fall Semester 2024 CO - Kennesaw State University 10/18/24, 10:16 PM Question 12 0 / 2.5 points "Market Failure" is defined as a situation in which a) the sum of gains and losses over all people in society is positive in value b) a situation in which Total Social Surplus is decreased by government intervention in a market c) the free market outcome is inefficient, in that there is a positive Deadweight Loss at the free market level of trade d) None of the answers is true. Question 13 0 / 2.5 points Consider a good for which there is a positive externality. If this good were provided by the market, then a) trade would have to take place at a price of $0 b) less than the efficient amount of the good would be traded c) every single unit of the good for which any consumer has a positive reservation price would be traded d) None of the above answers are correct Question 14 0 / 2.5 points __________is a BENEFIT of an activity borne by someone not engaging in the activity https://kennesaw.view.usg.edu/d2l/lms/quizzing/user/quiz_submissi…928&isInPopup=0&cfql=0&fromQB=0&fromSubmissionsList=1&ou=3289945 Page 8 of 25 Jon Burton - Contemporary Economic Issues Section BT Fall Semester 2024 CO - Kennesaw State University 10/18/24, 10:16 PM a) Rent seeking b) Logrolling c) negative externality d) positive externality Question 15 0 / 2.5 points The "Economic Calculation Problem," argues that a) a system of planning will never be able to achieve efficient outcomes, precisely because under such a system the planners do not have access to the information generated by market transactions b) market outcomes are more likely to be efficient when large and significant costs of complying with government bureaucracy are present c) calculating the true economic value of a worker can only be done under a socialist system d) market outcomes will never be efficient, unless the good being traded is sold by a monopolist Question 16 0 / 2.5 points Consider a country with realized rates of inflation, unemployment, and GDP growth in each year between 2017 and 2021 as summarized in the table below. https://kennesaw.view.usg.edu/d2l/lms/quizzing/user/quiz_submissi…928&isInPopup=0&cfql=0&fromQB=0&fromSubmissionsList=1&ou=3289945 Page 9 of 25 Jon Burton - Contemporary Economic Issues Section BT Fall Semester 2024 CO - Kennesaw State University 10/18/24, 10:16 PM Based upon the information in the table above, misery index for 2021 is a) 8.4% b) 6.5% c) 6% d) 8.5% Question 17 0 / 2.5 points ________is a good that is non-excludable and rival in consumption a) Netflix b) Personal Computer c) Sidewalks d) Public Sanitation Question 18 0 / 2.5 points __________is a COST of an activity borne by someone not engaging in the https://kennesaw.view.usg.edu/d2l/lms/quizzing/user/quiz_submiss…28&isInPopup=0&cfql=0&fromQB=0&fromSubmissionsList=1&ou=3289945 Page 10 of 25 Jon Burton - Contemporary Economic Issues Section BT Fall Semester 2024 CO - Kennesaw State University 10/18/24, 10:16 PM activity a) moral hazard b) corruption c) negative externality d) positive externality Question 19 0 / 2.5 points The Lorenz Curve provides a picture of how income is distributed among members of a population. If the Lorenz curve bows down, far away from the line of income equality, then a) the population is likely to be highly educated b) the population is likely to be less educated c) the equality of the distribution of income is greater d) the inequality of the distribution of income is greater Question 20 0 / 2.5 points This graph illustrates "Marginal Private Benefits," "Marginal Private Costs," "Marginal Social Benefits," and "Marginal Social Costs" in the market for https://kennesaw.view.usg.edu/d2l/lms/quizzing/user/quiz_submiss…928&isInPopup=0&cfql=0&fromQB=0&fromSubmissionsList=1&ou=3289945 Page 11 of 25 Jon Burton - Contemporary Economic Issues Section BT Fall Semester 2024 CO - Kennesaw State University 10/18/24, 10:16 PM "Good X." Based upon this graph, it appears as if this good a) generates a negative externality b) generates a positive externality c) None of the options d) is sold by a firm with substantial market power Question 21 0 / 2.5 points Cam is a citizen of Canada, but lives, works, and attends school in the United States. Last year he went on vacation to the Bahamas during Spring Break. In order to pay for his college tuition, he works at school as a graduate assistant. Last year he provided "assistant services" valued at $10,500. The value of these services would be included in the calculation of GDP for https://kennesaw.view.usg.edu/d2l/lms/quizzing/user/quiz_submiss…28&isInPopup=0&cfql=0&fromQB=0&fromSubmissionsList=1&ou=3289945 Page 12 of 25 Jon Burton - Contemporary Economic Issues Section BT Fall Semester 2024 CO - Kennesaw State University 10/18/24, 10:16 PM a) only Canada, since he is an Canadian citizen b) None of the options is correct c) only the United States, since that is where the production took place d) only The Bahamas, since that is where he went to relax on vacation (which was a necessary activity for him to be able to work hard in school and on the job throughout the rest of the year) Question 22 0 / 2.5 points This country experienced a recession from https://kennesaw.view.usg.edu/d2l/lms/quizzing/user/quiz_submiss…28&isInPopup=0&cfql=0&fromQB=0&fromSubmissionsList=1&ou=3289945 Page 13 of 25 Jon Burton - Contemporary Economic Issues Section BT Fall Semester 2024 CO - Kennesaw State University 10/18/24, 10:16 PM a) May 2011 through July 2015 b) April 2010 through August 2012 c) August 2012 through September 2017. d) January 2009 through July 2015. Question 23 0 / 2.5 points Which of the following people would be considered unemployed? a) A homemaker contributing 15 hours per week as a volunteer worker in a hospital b) A retired KSU professor who is collecting social security benefits. c) A full-time college student d) A recent college graduate looking for a first job Question 24 0 / 2.5 points https://kennesaw.view.usg.edu/d2l/lms/quizzing/user/quiz_submiss…28&isInPopup=0&cfql=0&fromQB=0&fromSubmissionsList=1&ou=3289945 Page 14 of 25 Jon Burton - Contemporary Economic Issues Section BT Fall Semester 2024 CO - Kennesaw State University 10/18/24, 10:16 PM Consider a society which has realized the changes in and trend in Real GDP illustrated in the graph above. This country experienced a recession from a) January 2014 through December 2018 b) February 2017 through July 2020. c) January 2016 through December 2018 d) March 2015 through February 2017. Question 25 0 / 2.5 points https://kennesaw.view.usg.edu/d2l/lms/quizzing/user/quiz_submiss…28&isInPopup=0&cfql=0&fromQB=0&fromSubmissionsList=1&ou=3289945 Page 15 of 25 Jon Burton - Contemporary Economic Issues Section BT Fall Semester 2024 CO - Kennesaw State University 10/18/24, 10:16 PM The phase of the business cycle that refers to the point in time at which overall economic activity reaches its maximum is the a) Recovery b) Trough c) Peak d) Recession Question 26 0 / 2.5 points If nominal GDP is $48,000 million, and the money supply is $8,000 million, then the velocity of money is equal to a) 6 b) 8 c) 0.166 d) 49.6 Question 27 0 / 2.5 points If the country's unemployment rate is 6% and inflation rate is 2%, what is the misery index for that country? https://kennesaw.view.usg.edu/d2l/lms/quizzing/user/quiz_submiss…28&isInPopup=0&cfql=0&fromQB=0&fromSubmissionsList=1&ou=3289945 Page 16 of 25 Jon Burton - Contemporary Economic Issues Section BT Fall Semester 2024 CO - Kennesaw State University 10/18/24, 10:16 PM a) 4% b) 8% c) 3% d) Cannot be computed from the information given Question 28 0 / 2.5 points Consider a society with an adult population categorized as follows According to the table above, which of the following "Type" is NOT in the labor force? a) Type A b) Type C c) Type C and Type D d) Type D https://kennesaw.view.usg.edu/d2l/lms/quizzing/user/quiz_submiss…28&isInPopup=0&cfql=0&fromQB=0&fromSubmissionsList=1&ou=3289945 Page 17 of 25 Jon Burton - Contemporary Economic Issues Section BT Fall Semester 2024 CO - Kennesaw State University 10/18/24, 10:16 PM Question 29 0 / 2.5 points There are___________ people in the labor force of this society Type A Type B Type C Type D Do you currently have a job? yes no yes no Are you currently seeking a no yes yes no job? Number of people of this type 700,000 220,000 80,000 600,000 a) 1,000,000 b) 220,000 c) 780,000 d) 1,600,000 Question 30 0 / 2.5 points A good that is used in the production process that is not (itself) a final good or service is 1) a necessary good 2) none of the options is true. https://kennesaw.view.usg.edu/d2l/lms/quizzing/user/quiz_submiss…28&isInPopup=0&cfql=0&fromQB=0&fromSubmissionsList=1&ou=3289945 Page 18 of 25 Jon Burton - Contemporary Economic Issues Section BT Fall Semester 2024 CO - Kennesaw State University 10/18/24, 10:16 PM 3) an inferior good 4) an intermediate good Question 31 0 / 2.5 points Brain drain is an environment in which well-connected unscrupulous business a) people use corrupt political systems to their advantage in order to obtain preferential treatment from government. b) an environment in which property rights and contracts are respected and administered fairly and transparently, without favoritism c) tendency for the most highly talented people from developing countries to become educated and then move to an already wealthy country d) None of the above is true Question 32 0 / 2.5 points Catch-up effect is a) an environment in which well-connected unscrupulous business people use corrupt political systems to their advantage in order to obtain preferential treatment from government b) a conjecture that (all other factors fixed) the growth rates of less developed countries will exceed the growth rates of developed countries, allowing the less developed countries to "catch up" https://kennesaw.view.usg.edu/d2l/lms/quizzing/user/quiz_submiss…28&isInPopup=0&cfql=0&fromQB=0&fromSubmissionsList=1&ou=3289945 Page 19 of 25 Jon Burton - Contemporary Economic Issues Section BT Fall Semester 2024 CO - Kennesaw State University 10/18/24, 10:16 PM over time tendency for the most highly talented people from developing c) countries to become educated and then move to an already wealthy country d) None of the above is true Question 33 0 / 2.5 points Capital flight is a) tendency for wealthy people in poor countries to invest their financial capital abroad instead of at home b) an environment in which well-connected unscrupulous business people use corrupt political systems to their advantage in order to obtain preferential treatment from government c) a conjecture that poor countries will remain poor since they do not have sufficient resources available to make the investments in capital which are necessary for economic growth d) an environment in which property rights and contracts are respected and administered fairly and transparently, without favoritism Question 34 0 / 2.5 points Suppose that “County K” were to realize a constant GDP Growth Rate of 9% per year. It follows that Real GDP would double in roughly_____years. (Rule of 72) 1) 9 https://kennesaw.view.usg.edu/d2l/lms/quizzing/user/quiz_submiss…28&isInPopup=0&cfql=0&fromQB=0&fromSubmissionsList=1&ou=3289945 Page 20 of 25 Jon Burton - Contemporary Economic Issues Section BT Fall Semester 2024 CO - Kennesaw State University 10/18/24, 10:16 PM 2) 0.125 3) 72 4) 8 Question 35 0 / 2.5 points This society’s Unemployment Rate is__________ Type A Type B Type C Type D Do you currently have a job? yes Yes No No Are you currently seeking a No Yes Yes No job? Number of people of this type 700,000 220,000 80,000 600,000 1) 5% 2) 8% 3) 26.36% 4) Cannot be computed from the information provided in the table Question 36 0 / 2.5 points https://kennesaw.view.usg.edu/d2l/lms/quizzing/user/quiz_submiss…28&isInPopup=0&cfql=0&fromQB=0&fromSubmissionsList=1&ou=3289945 Page 21 of 25 Jon Burton - Contemporary Economic Issues Section BT Fall Semester 2024 CO - Kennesaw State University 10/18/24, 10:16 PM Country X has Per Capita GDP of $6,000 in 2021. Suppose this country grew at a constant 3% per year indefinitely into the future. In 2,069 (i.e., 48 years in the future) the value of Per Capita GDP in Country X would be approximately ________. a) $20,000 b) $126,000 c) $24,000 d) $48,000 Question 37 0 / 2.5 points Refer to the table below. What is the contribution to GDP from the production of an economic book? The Production of an economics book Production Stage Sale Value Purchase of Timber $ 1.25 Processing of Timber into Paper $ 7.75 Printing $24.50 Retail Sale of economics book $68.00 a) $101.5 b) $68.00 https://kennesaw.view.usg.edu/d2l/lms/quizzing/user/quiz_submiss…28&isInPopup=0&cfql=0&fromQB=0&fromSubmissionsList=1&ou=3289945 Page 22 of 25 Jon Burton - Contemporary Economic Issues Section BT Fall Semester 2024 CO - Kennesaw State University 10/18/24, 10:16 PM c) $7.75 d) $13.50 Question 38 0 / 2.5 points Setting of discount rate is a) setting the interest rate that the Fed charges banks on short- term loans b) None of the options is true c) minimum restrictions on the amount of money that a bank must keep on hand at any point in time, in the form of either cash in its vault or deposits with the central bank d) the collection of all markets in which lenders and borrowers interact (e.g., mortgage markets, auto loan markets, consumer credit markets, business loan markets) Question 39 0 / 2.5 points The labor force of this society is ______ people Type A Type B Type C Type D Do you currently have a job? yes no yes yes Are you currently seeking a yes Yes no yes job? https://kennesaw.view.usg.edu/d2l/lms/quizzing/user/quiz_submiss…28&isInPopup=0&cfql=0&fromQB=0&fromSubmissionsList=1&ou=3289945 Page 23 of 25 Jon Burton - Contemporary Economic Issues Section BT Fall Semester 2024 CO - Kennesaw State University 10/18/24, 10:16 PM Number of people of this type 700,000 220,000 80,000 600,000 1) 1.6 million 2) 800,000 3) 600,000 4) Cannot be computed from the information provided in the table Question 40 0 / 2.5 points Consider a country with consumption expenditures, private investment expenditures, government purchases, exports, and imports (each stated in millions of Euros), plus population as summarized below: Net Exports for this country are equal to ____________. a) € 12,154 million b) € – 462 million (i.e., negative 462 million Euros) c) € – 12,154 million (i.e., negative 12,154 million Euros) d) € 462 million https://kennesaw.view.usg.edu/d2l/lms/quizzing/user/quiz_submiss…28&isInPopup=0&cfql=0&fromQB=0&fromSubmissionsList=1&ou=3289945 Page 24 of 25 Jon Burton - Contemporary Economic Issues Section BT Fall Semester 2024 CO - Kennesaw State University 10/18/24, 10:16 PM Done https://kennesaw.view.usg.edu/d2l/lms/quizzing/user/quiz_submiss…28&isInPopup=0&cfql=0&fromQB=0&fromSubmissionsList=1&ou=3289945 Page 25 of 25