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2007 FALL TEST 3-1A - TEST 3-1A ECO 2013 Fall 2007...

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TEST 3-1A Warrington College of Business ECO 2013, Fall 2007 Department of Economics Before handing in your test, please check that you have bubbled your name and UF ID number correctly and that you have bubbled in an answer for each question. Bubble in your new UF ID number, using the first 8 columns. Your test should have 50 questions. Please check to see that it does. Only non-programmable calculators are allowed. Using a programmable calculator results in a penalty of 15 points. Please bubble 3-1 in the two rows on the lower left corner of your bubble sheet, and A in the upper right hand corner. You do not need to fill in your section number, since we can match your name and UF ID number to it. Please sign the back of your bubble sheet. No way of receiving a message, such as a pager, may be consulted during the test. If you have a pager or cell phone and are expecting an urgent message, leave it and your ID with a proctor, who will relay the message to you. 1. House prices consist of two components, land and structures. Over the past decade, the _____ component has become a smaller part of the total, which is likely to make house prices _____ variable than in the past. a. land … less b. land … more c. structures … less d. structures … more e. The question errs. Land and structures prices are about equally variable. 2. On the 45º diagram, the aggregate expenditure line usually a. is horizontal. b. has a slope between zero and one. c. has a slope equal to one. d. has a slope greater than one but less than infinity. e. is vertical. 3. On the vertical axis of the 45º diagram, normally equilibrium GDP is a. lower than the vertical intercept of the AE line. b. equal to the vertical intercept of the AE line. c. higher than the vertical intercept of the AE line. 1 SPECIAL O O O O O O O O O CODES O O O O O O O O O
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4. Consider an economy fully described by the equations C = 2.5 + 0.5Y I = 0.8 + 0.1Y G= 3.0 + 0.0Y NX= 0.7– 0.1Y When this economy is in equilibrium, net exports are 5. Consider an economy fully described by the equations C = 2.5 + 0.65Y I = 0.8 + 0.13Y G= 3.0 + 0.0Y NX= 0.7– 0.18Y For this economy the multiplier is 6. According to the efficient markets hypothesis, if the stock market rose by 10% over the past month, you should expect the stock market to _____ during the coming month and the dollar to _____ during the coming month. 7. A house has two components, land and structure. The price that follows more nearly a random walk is that of a. the land.
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