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ECO 372 Final Exam For the past experiences and research by UopETutors, we find students’ needs regarding courses of final exam. The list of preparation material- study guides, study material, tests series and solved papers. ECO 372 Final Exam, ECO 372 Final Exam Questions and Answers and ECO 372 Week 5 Final Exam Answers in UopETutors catalogue.

1. News Story: Workers at a car-manufacturing plant in Flint, Michigan are laid off because the economy is weak and GM cars aren't selling well. GM isn't sure when the plant will reopen. What type of unemployment describes the workers' situation? 

Frictional unemployment

Structural unemployment

Full unemployment

Cyclical unemployment

2. If banks hold excess reserves whereas before they did not, the money multiplier: 

Will become smaller

Will become larger

Might increase or might decrease

Will be unaffected

3. The interest rate is the price paid for use of a: 

Real asset.

Financial liability.

Financial asset.

Real liability

4. Suppose farmers can use their land to grown either wheat or corn. The law of supply predicts that an increase in the market price of wheat will cause: 

Farmers to substitute wheat for the production of corn.

Farmers to raise the production of corn and wheat.

Farmers to lower the production of corn and wheat.

Farmers to substitute corn for the production of wheat.

5. According to the Classical growth model, an economy that increases its saving will grow: 

Quickly since the increase in saving will permit greater investment.

Quickly since the increase in saving will permit more rapid technological progress.

Slowly because interest rates will fall, causing investment to decline.

Slowly because consumption and aggregate demand will be reduced.

6. Which of the following topics is best characterized as a macroeconomic issue? 

The effect of a drought on the price of corn

The decision by Apple to produce fewer Macintosh computers

The effect of an increase in federal spending on the unemployment rate

The choice a student makes in selecting college course

7. In which of the following situations is a budget surplus most likely to occur? 

When fiscal policy is contractionary and the economy is expanding

When fiscal policy is expansionary and the economy is contracting

When fiscal policy is expansionary

When the economy is contracting

8. The largest expenditure component of GDP is: 

Government spending

Net exports



9. As a country develops economically, what changes usually take place in the goods it exports? 

There is little change because comparative advantage does not change.

Exports go from being diversified to being specialized in whatever the country finds to its comparative advantage.

Services and manufactured goods decline in importance and are replaced by raw materials and agricultural products.

Raw materials and agricultural products decline in importance and are replaced by services and manufactured goods.

10. The depreciation of currency will: 

Balance a trade surplus.

Have no impact on a country's comparative advantage.

Worsen a country's comparative advantage.

Improve a country's comparative advantage.

Furthermore at:

ECO 372 Final Exam - ECO 372 Final Exam Answers | UOP E  

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