Economics 302
Name ________________________________
Answers to First Midterm
June 7, 2007
Student ID Number _____________________
Version 2
This midterm consists of 28 multiple choice questions (some with just two answers and some with up to
five answers) worth 2 points each for a total of 56 points and 3 problems worth 10 points each for a total of
44 points. Please answer all multiple choice questions on the scantron provided.
Pleases show all your work on the exam booklet: if any questions arise
as to the integrity of your exam, we will NOT give full credit unless
suitable work is shown in the exam booklet.
For all questions please pick the BEST answer.
SCANTRON DIRECTIONS
Please fill out your scantron sheet carefully. You need to use a number 2 pencil and you need to bubble in
your
•
Name
•
Student Identification Number (and NOT your social security number)
•
Your exam version number in special codes column “A”
PROBLEM DIRECTIONS:
Please answer these questions on your test booklet. Please write legibly and please take some time to
organize your answer before your write it.
If you have questions about any question on the exam please make a note of that question on your exam
booklet and then draw the proctor’s attention to this question at the end of the exam. Please do not ask the
proctor any questions during the exam: no questions will be answered during the exam period.
You have 75 minutes to complete the exam. Please use your exam booklet margins for any calculations you
need to do.
Calculators are fine to use.
Problem #1 (12 points) _____________________
Problem #2 (12 Points) ______________________
Problem #3 (20 Points) ______________________
TOTAL
_______________________
1
This preview has intentionally blurred sections. Sign up to view the full version.
View Full DocumentMultiple Choice Questions:
1.
Real GDP in year 3 is calculated by
a.
Summing together the product of the base year’s prices times the year 3
quantities of production.
b.
Summing together the product of year 3’s prices times the year 3
quantities of production.
c.
Summing together the product of year 3’s prices times the base year
quantities of production.
Answer: A.
2.
In the classical model, an increase in the level of the money supply
I. Has no effect on nominal variables
II. Has no effect on real variables
III. Will result in an increase in the price level, holding everything else
constant
a.
Statements I, II and III are true.
b.
Statements I and III are true.
c.
Statements II and III are true.
d.
Statement I is true.
e.
Statement III is true.
Answer: C.
3.
Economists build models and then use these models to test hypotheses. Variables
explained by the models are called
a.
Endogenous variables.
b.
Exogenous variables.
Answer: A
4.
Depreciation is an example of a
a.
Stock.
b.
This is the end of the preview.
Sign up
to
access the rest of the document.
 Spring '07
 GOLD
 Economics, Macroeconomics, Inflation

Click to edit the document details