Sample Exam 2

Sample Exam 2 - Sample Exam 2 Multiple Choice Identify the...

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Sample Exam 2 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. Statistics that are of particular interest to macroeconomists a. are widely reported by the media. b. are largely ignored by the media. c. include the equilibrium prices of individual goods and services. d. do not include statistics for countries outside of North America. ____ 2. Gross domestic product serves as a measure of two things: a. the total spending of everyone in the economy and the total saving of everyone in the economy. b. the total income of everyone in the economy and the total expenditure on the nation's output of goods and services. c. the value of the nation's output of goods and services for domestic citizens and the value of the nation's output of goods and services for the rest of the world. d. the nation's saving and the nation's investment. ____ 3. Grapes are a. always counted as an intermediate good. b. counted as an intermediate good only if they are used to produce another good such as wine. c. counted as an intermediate good only if they are consumed. d. counted as an intermediate good, whether they are used to produce another good or consumed. ____ 4. Goods that go into inventory and are not sold during the current period are a. counted as intermediate goods and so are not included in current period GDP. b. counted in current GDP only if the firm that produced them sells them to another firm. c. included in current period GDP as inventory investment. d. included in current period GDP as consumption. ____ 5. In a certain economy in 2005, government purchases exceeded investment by $2,000; investment amounted to 1/6 of GDP; consumption amounted to 1/2 of GDP; and the economy’s imports exceeded its exports by $500. It follows that GDP amounted to a. $4,500. b. $7,500. c. $9,000. d. $10,500. ____ 6. During a presidential campaign, the incumbent argues that he should be reelected because GDP grew by 12 percent during his 4-year term in office. You know that population grew by 4 percent over the period, and that the GDP deflator increased by 6 percent during the past 4 years. You should conclude that real GDP per person a. grew by more than 12 percent. b. grew, but by less than 12 percent. c. was unchanged. d. decreased. ____ 7. The CPI is a measure of the overall cost of a. inputs purchased by a typical producer. b. goods and services bought by a typical consumer. c. goods and services produced in the economy.
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d. stocks on the New York Stock Exchange. ____ 8. The CPI is calculated a. monthly by the Department of Commerce. b. monthly by the Bureau of Labor Statistics. c. quarterly by the Department of Commerce. d.
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This test prep was uploaded on 04/18/2008 for the course ECON 202 taught by Professor Wenz during the Spring '08 term at Winona.

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Sample Exam 2 - Sample Exam 2 Multiple Choice Identify the...

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