Econ 212-Spring 2006 Midterm

# Econ 212-Spring 2006 Midterm - Spring 2006 ECONOMICS 212...

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Spring, 2006 ECONOMICS 212 Professor D. K. Benjamin MID-TERM EXAM Print and encode (bubble) your name, student number, and quiz section number on the scoring sheet. If you fail to do these actions correctly, you will be penalized five points . On the answer sheet, mark the letter corresponding to the correct answer, using a pencil. If you (i) fail to answer a question, (ii) select the incorrect answer, or (iii) select more than one answer, you will receive zero credit for that question. There are 30 questions. Read carefully and engage brain before putting tiger in gear. Go Tigers! Questions 1-3 are based on this information about Clemsonia (whose citizens, called Clems, are all 16 or older): 20000 people live there 17000 Clems are not employed and are not looking for work 2400 Clems are employed 600 Clems are not employed but are looking and available for work 1. The labor force of Clemsonia is: a. 2400 b. 3000 c. 17600 d. 19400 e. 20000 2. The labor force participation rate in Clemsonia is a. 3% b. 12% c. 15% d. 85% e. 100% 3. The unemployment rate in Clemsonia is: a. 3% b. 14.1% c. 20% d. 25% e. 88% 4. Assume the unemployment rate is initially 5%. Now suppose 1 million immigrants enter the U.S. All of them find jobs without displacing other workers from their jobs. As a result: a. the unemployment rate will rise because the labor force is larger b. the unemployment rate will remain unchanged because employment and the labor force have changed by the same amount c. the unemployment rate will rise because employment and the labor force have changed by the same amount d. the unemployment rate will fall because the labor force has risen but the number of unemployed people has not changed e. both (a) and (c) are correct. 5. Suppose that Burkina and Faso both have the same natural (steady state) unemployment rate, but that the cyclical unemployment rate currently is higher in Faso than in Burkina. From this you may conclude that a. frictional unemployment is currently lower in Faso than in Burkina b. the sum of frictional, seasonal, and structural unemployment is currently higher in Faso than in Burkina c. frictional plus seasonal unemployment is currently lower in Faso than in Burkina d. the total unemployment rate is currently higher in Faso than in Burkina e. the total unemployment rate is currently higher in Burkina than in Faso

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6. Which of the following is (are) part of the money supply of the United States? a. a dollar bill in your pocket b. a dollar bill in the vault of the Federal Reserve Bank of New York c. a credit card d. a dollar bill in the vault of Wachovia Bank e. only (a) and (b) 7. To say that there has been a rise in k, the cash balance ratio, is the same as saying that there has been: a. an increase in the demand for money. b. a decrease in the supply of money.
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## This note was uploaded on 04/29/2008 for the course ECON 212 taught by Professor Lady during the Spring '07 term at Clemson.

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Econ 212-Spring 2006 Midterm - Spring 2006 ECONOMICS 212...

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