2006makeupfirstprelimanswers - Name: Section Number: First...

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Name: First Prelim ECON 102 – 16 March 2006 Section Number: This exam has 5 pages: 20 multiple choice questions, 5 short answer questions and 3 essay questions Multiple Choice Questions One point per question. Write the answers on the separate sheet provided. 1. In the long-run demand for oil products is more ___ compared to the short-run where the demand for oil-products exhibits a rather ___ demand curve. a) elastic, flat b) elastic, steep c) inelastic, flat d) inelastic, steep Answer: b 2. What would NOT be included in the GDP of the US? a) my lunch at Peace restaurant, owned by a Chinese family b) the locally brewed beer I had yesterday c) the cloth used to make the Cornell T-shirt I bought in the campus store d) the 100 dollars my bank has charged me to open a new account Answer: c 3. The tomatoes picked by Mexican workers in California is part of ___. The salary of those workers, repatriated to Mexico is part of Mexican ___ but not Mexican ___. a) US GDP; GNP; GDP b) US GDP; GDP; GNP c) Mexican GDP; GNP; GDP d) Mexican GNP; GNP; GDP Answer: a 4. The drug traffic between Colombia and the US is included in: a) Colombian GDP b) US GDP c) US GNP d) none of the above Answer: d 5. Who are included in the number of unemployed people in the US? a) the inmates in the jail of San Francisco b) my neighbor, who was fired a few days ago and is trying to find a new job soon c) the 19 year old son of a farmer who helps his father on a farm but does not receive a wage d) my doctor since he has almost no patients left Answer: b 1
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Name: First Prelim ECON 102 – 16 March 2006 Section Number: 6. The MPS refers to: a) the average amount of saving in a society. b) the fraction of an increase in income that is saved. c) the slope of the consumer function d) the fraction of a change in income that is consumed. Answer: b 7. Decreasing interest rates are likely to ____ spending and increasing income is likely to ____ spending. a) increase, decrease b) decrease, increase c) increase, increase d) decrease, decrease Answer: c 8. In a closed economy with no government, only when ___ equals ____ there will be equilibrium. a) unplanned investment, savings b) planned consumption, savings c) planned investment, savings d) planned investment, aggregate output Answer: c 9. If firms react to unplanned inventory reduction by ___ output, an economy with planned spending _____ than output will adjust to equilibrium, with Y ____ than before. a) decreasing, less, higher b) decreasing, greater, lower c) increasing, greater, higher d) increasing, less, lower Answer: c 10. When planned investment increases by a certain amount, the equilibrium level of output ____ by a _____ amount. a)
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This note was uploaded on 02/13/2008 for the course ECON 1120 taught by Professor Wissink during the Spring '05 term at Cornell University (Engineering School).

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2006makeupfirstprelimanswers - Name: Section Number: First...

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