Final Exam Practice Questions

Final Exam Practice Questions - Econ 101-008 Michael Salemi...

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Econ 101-008, Michael Salemi Final Examination Practice Questions The final examination will be comprehensive. The following questions cover material on lectures 21-29 of the course. The final examination will also include questions from the material covered by the first and second midterm examinations and the economics of information lecture (19). To prepare this earlier material, students should review their midterm examinations, the midterm examination practice questions, and the clicker questions for the relevant lectures. 1. Which of the following statements correctly describes growth in the United States? a. Nominal GDP has grown substantially but real GDP has grown only slightly. b. Growth in real GDP has averaged about one percent per year. c. Each year the economy has experienced the same addition to real GDP as the year before. d. Growth in real GDP per capita has occurred at a compound rate of about 2 percent. 2. Over the period since World War Two in the United States, the rate of inflation has… a. Remained steady at about three percent per year. b. Alternated between periods of rising and falling prices. c. Been erratic between 1950 and 1980 and relatively stable since 1980. d. Continued to grow throughout the post war period. 3. Which of the following statements about current U.S. monetary policy is correct? Monetary policy… a. Controls the printing of money to provide income for the government. b. Involves changing short term interest rates to keep inflation low and steady. c. Has full employment as its sole objective. d. Is controlled by the President with the advice of Congress. 4. During a recession, the unemployment rate ________ and the rate of growth in real GDP _______. a. rises, rises. b. rises, falls. c. falls, rises. d. falls, falls. 5. Inflation is best defined as a. Growth in nominal gross domestic product. b. An increase in the average wage received by workers. c. Growth in the general level of prices. d. An increase in the money supply.
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6. Which of the following is not one of the components added together to measure GDP using the expenditures approach? a. Consumption. b. Investment. c. Labor employment. d. Net Exports. 7. Which of the following individuals is classified as part of the labor force? a. A high school teacher enjoying the summer off. b. A 14 year old working at a fast food restaurant. c. A full time college student. d. A government employee. Use the following data on Simple Land to answer the next three questions. Assume that the base year for national income accounting purposes is 2005. Bread
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Final Exam Practice Questions - Econ 101-008 Michael Salemi...

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