The EC250 Final Exam Includes Accurate And Verified

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The EC250 Final Exam Includes Accurate And Verified Questions Covering Intermediate Microeconomic Concepts Such As Consumer Behavior, Production And Cost Theory, Market Structures, Game Theory, And Welfare Economics.Ideal For University-Level Economics Students Preparing For End-Of-Term Assessment.

• Which of the following is investment?

• purchase of shares in initial public offering
• purchase of a used printing press
• the production of a machine
• none of the above - ANSWER-d) none of the above

• An increase in depreciation

a) Raises investment as new capital does not last as long

b) Lowers investment as new capital does not last as long

c) May increase or lower investment as it makes capital more

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d) May increase or lower investment as it makes capital more

expensive but more capital needs to be replaced each year - ANSWER-d) May increase or lower investment as it makes capital more expensive but more capital needs to be replaced each year

• Investment schedule shifts to the left if

a) Expected productivity of new capital falls

b) Investors expect a recession

c) Investors expect a higher real interest rate in the future

d) All of the above. - ANSWER-d) All of the above.

• The cost of carrying inventory is

• i
• r
• i+d
• r+d - ANSWER-d) r+d
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• John puts a down payment of 25% to buy a house. In one

year, the value of the house falls by 5%. His return on down

payment is:

• -5%
• -10%
• -20%
• -40% - ANSWER-c) -20%

Use numbers. House costs 100, John borrows 75, contributes 25.The value of the house falls by 5% so the house is worth 95; John still owes 75 so instead of 25 he now has 20

6. The definition of investment should include:

a) Spoilage of inventory

b) Depreciation of capital

c) Purchases of shares in new companies

d) None of the above - ANSWER-d) None of the above

• The definition of investment should include 3 / 4

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a) Cost of your university studies

b) Spending by companies on training

c) Software

d) All of the above - ANSWER-d) All of the above

• During the pandemic, employment fell the most

a) In agriculture

b) In construction

c) In services

d) In accommodation and food services table - ANSWER-d) In

accommodation and food services table

• The labour demand curve

• is the same as the MPL (marginal product of labour) curve
• is downward sloping because a higher nominal wage raises

the demand for labour

• is upward sloping because higher real wages reduce the

demand for labour

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