Midterm2-MCPrac

Midterm2-MCPrac - Radu Munteanu Economics 3, Spring 08...

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Radu Munteanu Economics 3, Spring 08 Practice problems for Midterm 2 (many thanks to Kristy Buzard for working on these questions) 1. Consider the nation's production possibilities frontier between leisure and GDP. A decrease in leisure will cause I) an increase in labor input. II) a movement along the production possibility frontier. 1. I only 2. II only 3. both I and II* 4. neither I nor II 2. If the nominal (money) wage rate is $15.00 per hour and the price level is 120, the real wage rate is 1. $12.50 per hour.* 2. $8.50 per hour. 3. $10.75 per hour. 4. $15.00 per hour. 3. The real wage rate falls if the nominal (money) wage rate ________. 1. rises more rapidly than the price level 2. and the price level change by the same proportion 3. rises more slowly than the price level* 4. is constant and the price level falls 4. The demand for labor curve slopes downwards because: 1.as more workers are hired, output decreases. 2.as more workers are hired, the marginal product of labor decreases.* 3.output increases as more workers are hired. 4.as more workers are hired, the marginal product of labor increases. 5. If real GDP per person is growing at 4 percent per year, approximately how many years will it take to double? 1. 1.25 3. 3.8 2. 17.5* 4. 4.4 1
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6. Convergence of the income gap has been most dramatic between 1. the Central European countries and the United States. 2. Africa and the United States. 3. South America and the United States. 4. Hong Kong and the United States* 7. In Country A, the working age population is 100 million, the employment-to- population ratio is 60 percent, and, on average, people work 1,500 hours per year. Calculate aggregate hours in Country A. 1)1.150,000 mil 3) 1,800 mil 2) 2.6 mil 4) 90,000 mil* 8. If capital per worker rises, 1. no technological progress occurs.
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This note was uploaded on 07/30/2008 for the course ECON 3 taught by Professor Peters during the Spring '07 term at UCSD.

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Midterm2-MCPrac - Radu Munteanu Economics 3, Spring 08...

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