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Economics for Business Creation (Ago 17 Gpo 2) Second Partial Exam 2017-13
Review Test Submission: Second Partial Exam 2017-13

Review Test Submission: Second Partial Exam 2017-13

User Ral Mndez Trejo

Course Economics for Business Creation (Ago 17 Gpo 2)
Test Second Partial Exam 2017-13
Started 10/27/17 3:01 PM
Submitted 10/27/17 3:26 PM
Due Date 10/27/17 4:00 PM
Status Completed
Attempt 100 out of 100 points
Score
Time 24 minutes out of 1 hour and 20 minutes
Elapsed
Instructions According to the Code of Ethics for Students of Tecnolgico de
Monterrey, I declare that my performance on this test is
governed by academic honesty.

Results Correct Answers

Displayed

Question 1 4 out of 4 points

When the inflation rate is positive, the:

Correct c.
Answer: real interest rate is less than the nominal interest rate.

Question 2 4 out of 4 points

Inflation is:
 Correct Answer: d. a general rise in prices.

Question 3 4 out of 4 points

The information in the table gives the 1992 base period market basket and
prices used to construct the CPI for a small nation. It also has the 1999
prices. What is the value of the CPI for the yesar 1999?:

1992 1999

Item Quantity Price Price

Movie
tickets $5.00 $7.50
4

Bags of
popcorn $3.00 $3.00
2

Drinks of
soda $1.00 $1.50
4

Correct Answer: b. 140

Question 4 4 out of 4 points

Assume the inflation rate falls from 4 percent to 2 percent. This means that:

Correct Answer: c. the average price level is increasing more slowly.

Question 5 4 out of 4 points

The consumer price index (CPI):

Correct d.
Answer: compares the cost in the current period to the cost in a base
period of a basket of goods typically consumed in the base
period.

Question 6 4 out of 4 points

 An unregulated monopoly finds that its marginal cost exceeds its marginal
revenue. In order to increase its profit, the firm will

Correct Answer: a. raise its price and decrease its output

Question 7 4 out of 4 points

For a monopoly, the industry demand curve is the firms

Correct Answer: b. demand curve

Question 8 4 out of 4 points

The GDP deflator is:

Correct c.
Answer: a general indicator of inflation because it measures changes in
prices of the goods and services included in GDP.

Question 9 4 out of 4 points

Using the data in the table, gross domestic product equals:

Corporate profits $200

Net interest 150

Indirect taxes less subsidies 230

Depreciation 250

Compensation of employees 1,350

Proprietors income 150

Rental income 70

Personal consumption expenditures 1,400

Government purchases of goods 500

and services

Net exports of goods and services 40

 Correct Answer: b. $2,400

Question 10 4 out of 4 points

The table gives the real and nominal GDP or a hypothetical nation. What
was real GDP in 1998?:

Nominal GDP Real GDP GDP

(billions of (billions of 1992 deflator
Year dollars) dollars)

1997 5,200 4,800

1998 5,500 112

1999 5,740 5,000

Correct Answer: c. $4,911 billion

Question 11 4 out of 4 points

A definition of the gross domestic product (GDP) is:

Correct d.
Answer: the market value of final goods and services produced by the
economy in one year.

Question 12 4 out of 4 points

The circular flow diagram shows:

Correct Answer: d. the flows between different sectors of the economy.

Question 13 4 out of 4 points

The table gives the real and nominal GDP or a hypothetical nation. What is
the GDP deflator for 1997?:

Nominal GDP Real GDP GDP

(billions of (billions of 1992 deflator
Year dollars) dollars)
 1997 5,200 4,800

1998 5,500 112

1999 5,740 5,000

Correct Answer: c. 108.3

Question 14 4 out of 4 points

A nation produces only haircuts and cell phones. Using the data in the
table, what is nominal GDP in 2001?

Price of a Quantity of Price of a Quantity of

haircut haircuts cell phone cell phones
Year (dollars)) (dollars)

2001 18 500 40 150

2002 24 750 45 400

Correct Answer: a. $15,000

Question 15 4 out of 4 points

Real GDP measures the Real GDP measures the:

Correct d.
Answer: value of total production linked to prices of a single year.

Question 16 4 out of 4 points

Using the data in the table, what is the inflation rate between 1998 and
1999?

Nominal GDP Real GDP

Year (billions of (billions of GDP deflator
dollars) dollars)

1998 2500 ____ 105

1999 ____ 2400 117

 Correct Answer: b. 11.4 percent

Question 17 4 out of 4 points

Which of the following relationships is correct?:

Correct Answer: d. GDP Deflator = (Nominal GDP/Real GDP) x 100

Question 18 4 out of 4 points

In perfect competition

Correct Answer: b. all firms in the market sell their product at the same price

Question 19 4 out of 4 points

A perfectly competitive firm maximizes its profit by producing the output at which
its marginal cost equals its

Correct Answer: a. marginal revenue

Question 20 4 out of 4 points

The break-even point is defined as occurring at an output rate at which

Correct Answer: c. total revenue equals total opportunity cost

Question 21 4 out of 4 points

The short-run supply curve for a perfectly competitive firm is its

Correct Answer: a. marginal cost curve above its shutdown point

Question 22 4 out of 4 points

A game always contains all of the following EXCEPT

 Correct Answer: b. a dominant strategy equilibrium

Question 23 4 out of 4 points

If a collusive agreement in a duopoly maximizes the industrys profit,

Correct a.
Answer: industry marginal revenue must equal industry marginal cost at
the level of total output.

Question 24 4 out of 4 points

In the long run, a monopolistically competitive firms economic profits are

zero because of

Correct Answer: b. the lack of barriers to entry.

Question 25 4 out of 4 points

What type of industry structure has many firms, each producing a slightly
different good, with no barriers to entry or exit?

Correct Answer: a. Monopolistic competition.

Friday, October 27, 2017 3:26:54 PM CDT

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