{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

EXAM #1 Spring 08 - EXAM#1 SPRING 2008-PPF GDP Growth CPI...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
EXAM #1 SPRING 2008--PPF, GDP, Growth & CPI Multiple Choice--2 points each Identify the letter of the choice that best completes the statement or answers the question. 1. According to economic growth theory, which of the following facts about New Mexico can explain why we are poorer than other states. a. We have two national labs, while most states have no national labs. b. Our high school drop out rate is among the highest in the country. c. We have less business investment. d. Both b & c above contribute to our relative poverty. e. a, b & c all contribute to our relative poverty.. 2. A country that experiences a sustained 3.5% increase in real per capita income can expect to double its income in 3. In order to calculate GDP, which of the following should be included? I. Consumer spending II. Government spending on goods and services III. Investment spending by businesses IV. Net Exports V. Government spending on social security VI. Income, Property and Sales taxes 4. Which of the following measures best represents a countryÕs standard of living? 5. Richer countries by definition have _____________ than poorer countries. a. larger populations c. lower inflation b. higher productivity d. more economic activity in agriculture 6. According to the simple PPF model, countries can increase output by 7. Which of the following increases labor productivity? 8. Which of the following measures productivity? 9. If the Federal minimum wage were indexed for inflation, a. the purchasing power of the minimum wage would fall over time. b. the purchasing power of the minimum wage would rise over time. c. the purchasing power of the minimum wage would not fall or rise over time.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
10. My grandmotherÕs social security check is indexed for inflation. Last year inflation, as measured by the change in the CPI, was 3.0%. My grandmother spends 20% of her income on medical care. If the cost of medical care rose 7.5% last year, which of the following statements is true?
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}