ECN 211_Midterm Part11

ECN 211_Midterm Part11 - ECN 211 Macroeconomic Principles...

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ECN 211 Midterm Dr. Happel Macroeconomic Principles Version A Fall, 2006 8:40-9:55 MW Select only one answer per question. Remember that if any part of an answer is false, then the entire answer is false. 1. Where is corruption (the likelihood of government officials asking for and accepting bribes) least likely to occur? a. In countries with developed economic systems. b. In countries with temperate climates. c. In countries with undeveloped economic systems. d. In countries with cold climates. e. Both a and b are true. 2. Which of the following statements about economics is true ? a. Economics (according to Dr. Happel) is the study of scarcity and scarcity implies discrimination and conflict can never be eliminated. b. Since economics is the study of scarcity, it is also the study of choices. c. Macroeconomics is concerned with the entire economy and aggregate output. d. Economists often say no when they confront scarcity. e. All of the above are true. 3. Which of the following statements is true about the U.S. economy at the moment? a. The economy is currently in a recession. b. The unemployment rate is currently under 5 percent. c. The inflation rate, as measured by CPI, is below 2 percent. d. The growth rate in real GDP has decreased sharply since the Bush 2003 tax cuts. e. None of the above is true. 4. Which of the following statements about Isaac Newton is false ? a. After graduating from Cambridge, the plague forced him to return to his hometown, and during the next two years he developed calculus theory and formulated his laws of motion. b. Newton did not become famous right after 1666 because his works were not published immediately after he came up with his ideas. c. After Newton became head of the mint in England in the late 1690’s, he put England on a gold standard in 1717, and it lasted for almost 200 years (until 1914). d. Newton did not believe in God. e. Newton saw the world in equilibrium states.
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5. Which of the following ideas is false regarding Adam Smith’s life? a. Smith was kidnapped by gypsies as a child. b. In the Theory of Moral Sentiments in 1759, he argued that clever, talented people owe a huge debt to society. c. He met Thomas Jefferson and Ben Franklin. d. As customs commissioner of Edinburgh at the end of his life, he vigorously reduced tariffs. e. He died a bachelor and burned a 1000-page manuscript just before his death. 6. Which of the following ideas is false according to Smith in An Inquiry into the Nature and Causes of the Wealth of Nations (1776)? a. The wealth of a nation is goods and services, not money; money is instead a claim on wealth. b. Free trade increases opportunities for division and specialization of resources. c.
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This note was uploaded on 03/24/2009 for the course ECN ecn 211 taught by Professor Stevehappel during the Fall '06 term at ASU.

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ECN 211_Midterm Part11 - ECN 211 Macroeconomic Principles...

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