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ECO 561 Final Exam

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About The ECO 561 Final Exam University of Phoenix

ECO 561 is the exam conducted by the University of Phoenix for the paper of Managerial economics. Our online portal is an in-depth preparation hub that provide a combination of study material, guide, strategy and tips for the exam. You can avail stress free learning through our comprehensive preparation tools eco 561 final exam 39 questions, eco 561 final exam answers and questions, and previous year exam questions such as eco 561 final exam 2013, 2014, 2015 etc.
ECO 561 final exam university of phoenix is not easy unless you get the right guidance and study techniques. All our tools and techniques are developed by experts after through research over the past trend of the exam. You can also get the latest eco 561 final exam answers university of phoenix, that are based on all the previous year exams including eco 561 final exam 2016.

 

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Study EC0 561 Final Exam in the University of Phoenix

ECO 561 is not tough if you study with right strategy. Our online tutorial is comprehensive enough to cover all the required study material tools and techniques you need to tackle this exam with confidence. You can avail the course material for all weeks of ECO 561, eco 561 final exam answers- questions pdf, documents etc. Students on all degree programmes begin their study of economics with the Preliminary course in Microeconomics and Macroeconomics. In subsequent years, depending on the degree programme, they take a combination of Core and Optional courses. Options for the final year include the opportunity to write a thesis. Our Economics course provides a rounded, rigorous education in economics which is valuable for a wide range of career paths. EC0 561 Final Exam explore how individuals and groups manage resources and react to scarcity.

You can see a list of the question and answer of ECO 561 final exam below. Please refer to their respective tutorial for further information about the Economics – eco561 they have to offer. To find out ECO 561 Final Exam it’s like to study online and how online courses are delivered, see Online question and answer explained. it’s like to study online and how online courses are delivered, see Online question and answer explained. 

 

Question 1

Suppose that in the clothing market, production costs have fallen, but the equilibrium price and quantity purchased have both increased. Based on this information you can conclude that

Answers

A. the supply of clothing has grown faster than the demand for clothing

B. demand for clothing has grown faster than the supply of clothing

C. the supply of and demand for clothing have grown by the same proportion

D. there is no way to determine what has happened to supply and demand with this information

 

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Question 2

Camille's Creations and Julia's Jewels both sell beads in a competitive market. If at the market price of $5, both are running out of beads to sell (they can't keep up with the quantity demanded at that price), then we would expect both Camille's and Julia's to:

Answers

A. raise their price and reduce their quantity supplied

B. raise their price and increase their quantity supplied

C. lower their price and reduce their quantity supplied

D. lower their price and increase their quantity supplied

 

Question 3 

In which of the following industries are economies of scale exhausted at relatively low levels of output?

Answers

A. Aircraft production

B. Automobile manufacturing

C. Concrete mixing

D. Newspaper printing

 

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Question 4

The average cost curves (AVC and ATC) should be minimized

Answers

A. where MC = ATC and MC = AVC

B. where FC = ATC and FC = AVC

C. where TC starts to increase at a faster rate

D. where ATC = AVC

 

Question 5 

If the wage rate increases,

Answers

A. a purely competitive producer will hire less labour, but an imperfectly competitive producer will not

B. an imperfectly competitive producer will hire less labour, but a purely competitive producer will not

C. a purely competitive and an imperfectly competitive producer will both hire less labour

D. an imperfectly competitive producer may find it profitable to hire either more or less labour

 

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Question 6

The real wage will rise if the nominal wage

Answers

A. falls more rapidly than the general price level

B. increases at the same rate as labor productivity

C. increases more rapidly than the general price level

D. falls at the same rate as the general price level

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Question 7

Construction workers frequently sponsor political lobbying in support of greater public spending on highways and public buildings. One reason they do this is to

Answers

A. restrict the supply of construction workers

B. increase the elasticity of demand for construction workers

C. increase the demand for construction workers

D. increase the price of substitute inputs

 

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Question 8

Paying an above-equilibrium wage rate might reduce unit labour costs by

Answers

A. permitting the firm to attract lower-quality labour

B. increasing the cost to workers of being fired for shirking

C. increasing voluntary worker turnover

D. increasing the supply of labour

 

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Question 9

A good real-world example of monopolistic competition is

Answers

A. lawyers

B. gas stations

C. Time Warner Cable

D. groceries store

 

Question 10 

An industry comprising a small number of firms, each of which considers the potential reactions of its rivals in making price-output decisions, is called

Answers

A. monopolistic competition

B. oligopoly

C. pure monopoly

D. pure competition

 

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Question 11

Price is constant or given to the individual firm selling in a purely competitive market because

Answers

A. the firm's demand curve is downward sloping

B. of product differentiation reinforced by extensive advertising

C. each seller supplies a negligible fraction of total supply

D. there are no good substitutes for its product

 

Question 12 

The most important pricing strategy for a perfectly competitive firm is

Answers

A. minimizing cost

B. maximizing sales

C. product differentiation

D. advertising

 

Question 13 

Which of the following is a nonprice barrier of entry?

Answers

A. Huge sunk cost

B. Discounts

C. Product differentiation

D. Advertising

 

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Question 14

A third-degree price discrimination can be applied to which of the following market structures?

Answers

A. A monopoly

B. An oligopoly

C. A monopolistic competition

D. A perfect competition

 

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Question 15

Investing in R&D is more likely to occur in markets where

Answers

A. firms have monopoly power protected by regulatory barriers

B. markets are closely competitive markets with close to zero economic profits

C. markets are oligopoly markets with strong collusion agreements

D. markets are monopolistic competitive markets

 

Question 16

All economies of scale are achieved at the minimum of

Answers

A. average total cost

B. total cost

C. average variable cost

D. average fixed cost

 

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Question 17

Inflation is undesirable because it

Answers

A. arbitrarily redistributes real income and wealth

B. invariably leads to hyperinflation

C. usually is accompanied by declining real GDP

D. reduces everyone’s standard of living in the same proportion

 

Question 18

An economy’s aggregate demand curve shifts leftward or rightward by more than changes in initial spending because of the

Answers

A. net export effect

B. wealth effect

C. real-balances effect

D. multiplier effect

 

Question 19

Suppose productivity rises in a particular economy, but wages stay the same. Other things equal,

Answers

A. the demand curve will shift leftward

B. the supply curve will shift rightward

C. the supply curve will shift leftward

D. expenditures curve will shift rightward

 

 Question 20

If personal taxes were decreased and resource productivity increased simultaneously, the equilibrium

Answers

A. output would rise

B. output would fall

C. price level would necessarily fall

D. price level would necessarily rise

 

Question 21

Expansionary fiscal policy is so named because it

Answers

A. involves an expansion of the nation's money supply

B. can only be attained by expanding government consumption

C. is aimed at achieving greater price stability

D. can motivate an expansion of real GDP

 

Question 22

Suppose the price level is fixed, the MPC is .5, and the GDP gap is a negative$100 billion. To achieve full-employment output (exactly), government should

Answers

A. increase government expenditures by $100 billion

B. increase government expenditures by $50 billion

C. reduce taxes by $50 billion

D. reduce taxes by $200 billion

 

Question 23

GDP understates the value of output produced by an economy because it

Answers

A. includes transactions that do not take place in organized markets, such as home cooked meals

B. includes environmental degradation caused by increased output production

C. excludes value added from the underground economy, such as tips taken under the table

D. excludes the value of the wages and benefits of government employee

 

Question 24

Other things equal, a decrease in the real interest rate will

Answers

A. shift the investment demand curve to the right

B. shift the investment demand curve to the left

C. move the economy upward along its existing investment demand curve

D. move the economy downward along its existing investment demand curve

 

Question 25

Other things equal, a decrease in corporate income taxes will

Answers

A. decrease the market price of real capital goods

B. have no effect on the location of the investment demand curve

C. shift the investment demand curve to the right

D. shift the investment demand curve to the left

 

Question 26

Inflation in U.S. prices will cause

Answers

A. an increase in the demand for U.S. dollars and an appreciation in the exchange rate

B. an increase in the supply of U.S. dollars and a depreciation in the exchange rate

C. a decrease in the demand for U.S. dollars and a depreciation in the exchange rate

D. a decrease in the supply of U.S. dollars and an appreciation in the exchange rate

 

Question 27

The quantity theory of money states that

Answers

A. the money supply divided by the velocity of money equals the price level divided by real output

B. the money supply times the velocity of money equals the price level times real output

C. the money supply times the price level equals real output divided by the velocity of money

D. the money supply times the price level equals real output times the velocity of money

 

Question 28

Suppose that U.S. prices rise 4% over the next year while prices in Mexicorise 6%. According to the purchasing power parity theory of exchange rates,what should happen to the exchange rate between the dollar and the peso?

Answers

A. The dollar should depreciate.

B. The peso should appreciate.

C. The peso should depreciate.

D. The dollar will be revalued.

 

Question 29

A rise in the domestic interest rate leads to capital

Answers

A. outflows and exchange rate appreciation

B. outflows and exchange rate depreciation

C. inflows and exchange rate depreciation

D. inflows and exchange rate appreciation

 

Question 30

A firm under monopolistic competition will earn

Answers

A. a positive economic profit as it has some monopoly power

B. zero economic profit as it sets P = MC

C. zero economic profit as its P = ATC

D. a positive economic profit as it sets MC = MR

 

Economics – eco561 Course Content include Topics and Objectives for ECO 561 Final Exam

ECO 561 Final Exam has a well-defined syllabus. We have presented the entire syllabus with both compulsory and optional modules for the Economics – eco561 Course.  Past trend suggests that the focus of exam has changed year-on-year. So, we have covered the entire topics important for the exam. The course is designed to give students a thorough background in the latest advances in theoretical, applied and empirical economics.  This course applies economic concepts to make management decisions. Students employ the concepts of scarce resources and opportunity costs to perform economic analysis. Other topics include supply and demand, profit maximization, market structure, macroeconomic measurement, money, trade, and foreign exchange.

  • Credit Markets and Globalization
  • Improving Business Decisions
  • Increasing Revenue
  • Cost Concepts
  • Market Structure
  • Economic Conditions

 

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