This preview has intentionally blurred parts. Sign up to view the full document

View Full Document

Unformatted Document Excerpt

Eco 1002 Midterm Two - Practice Exam (Prof. Suparna Chakraborty) Multiple Choice Identify the choice that best completes the statement or answers the question. Labor Market Data Below is some hypothetical data on the labor market. wage quantity demanded quantity supplied $7 9,000 14,000 $6 12,000 12,000 $5 15,000 10,000 ____ 1. Refer to Labor Market Data. If the government imposed a minimum wage of $7, what would unemploy- ment be? a. 3,000 b. 5,000 c. d. 2,000 ____ 2. Refer to Labor Market Data. If the government imposed a minimum wage of $5, what would unemploy- ment be? a. 3,000 b. c. 5,000 d. 2,000 ____ 3. A barber shop produces 96 haircuts a day. Each barber in the shop works 8 hours per day and produces the same number of haircuts per hour. If the shops productivity is 2 haircuts per hour of labor, then how many barbers does the shop employ? a. 4 b. 6 c. 3 d. 2 ____ 4. If travelers checks were $500 higher and saving deposits were $1,000 higher, M1 would be a. $500 higher and M2 would be $1,500 higher b. $500 higher and M2 would be $1,000 higher c. M2 and M1 would be $1,500 higher d. None of the above are correct. ____ 5. Frictional unemployment can be the consequence of a. one industry declining while another is growing. b. changes in the working conditions offered by competing firms. c. workers leaving existing jobs to find ones they like better. d. All of the above are correct. ____ 6. When the Federal Reserve sells assets from its portfolio to the public with the intent of changing the money supply, a. those assets are government bonds and the Feds reason for selling them is to increase the money supply. b. those assets are items that are included in M2 and the Feds reason for selling them is to decrease the money supply. c. those assets are items that are included in M2 and the Feds reason for selling them is to increase the money supply.... View Full Document

End of Preview

Sign up now to access the rest of the document