2002 - 05/17/02 16:29 FAX 8596475045 Thomson Learning III...

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05/17/02 16:29 FAX 8596475045 Thomson Learning III 002 Dr. Jaques Econ201 Final E](am Spring 2002 Multiple Choice Identify the letter ofthe choice that best completes the statemenl or answers the question. 1. Macroeconomics studies all ofthe following jexceptj one. Which is the exception'? a, why the 1981-82 recession had a greater impact on the unemployment rate than previous r,~cessions did b. how a higher inflation rate alters the distribulion ofwealth and income c. bow the closingofa General Motors plant will affect unemployment, spending, and illtlation in the United States d. tIe impact ofextending unemployment compensation benefits on the length ofa person's j,)b search e. be impact ofthe 1987 stock market crash on consumers' spendini 2. ECOMmists believe lhat a. I,eople who choose to promote the interests of others cannot be acting rationally in their (,wn self-interest b. .'eoplc show concern only for those whom they lmOw personally c. charitable donations would disappear if tax deductions for charitable giving were tliminated d. ttie notion ofself.interest rules out concern for others e. (oncem for the welfare ofothers is consistent with the conc""'P1 ofself-interest 3. Which ofthe following is an example ofa positive statement? a. Workers with families should be paid at least the minimwn wage. Ifcrime rates were reduced. the world would be a betler place in which to live. c. Marginal tax rates should reduced for individuals in the highest tax brackets. An increase in the price ofgasoline will cause a reduction in the amount purchased. e. Corrupt politicians ought to be voted out ofoffice. 4. Your friend notices that U.S. auto production and U.S. population growth have moved together over several decades. He reasons that one way to slow population growth is for the government to order the auto makers to eu .back on production. You gently point out to him that he a. is correct only when the economy is in a recession b. has mistakenly inferred causation from observed correlation has ignored secondary effects has committed the fallacy ofcomposition e. is correct only when the United States enjoys economic growth
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· _ .. _.- _ __ . . _. ._-_ _----------------- ___ 05!17f~ 16:30 FAX 8596475045 Thomson Learning III 003 S. 6. 7. 8. Suppose you have purchased a non-refundable plane ticket and, at the last moment, you cannot take the trip. You c·m, however, sell the ticket. If you paid $700 for the ticket, the cost of sending the ticket to someone tbfOu~h overnight mail is $20, and you spend $10 on a courier to get the ticket to the post office for overnight delivery, what is the minimum you should accept for the ticket? a. $"100 because that is what the ticket cost. b. $120 because that is the cost ofthe ticket and of getting it to the buyer. c. $ 730 because that is the total cost of the ticket and getting it to the buyer. do More than $730, so that you can make a profit.
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This note was uploaded on 03/17/2008 for the course ECON 201 taught by Professor Dr.jaques during the Spring '08 term at Cal Poly Pomona.

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2002 - 05/17/02 16:29 FAX 8596475045 Thomson Learning III...

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