Exam1 - Exam 1 Economics 2006, Fall 2007 [1]Which of 1 and...

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Exam 1 Economics 2006, Fall 2007 [1]Which of 1 and 2 is a false statement? 1. In the Great Depression unemployment peaked at about 25%. 2. The decade of the 1970s gave rise to the “Great Inflation.” 3. Each of 1 and 2 is false. 4. Each of 1 and 2 is true. [2]Which of 1-3 is a false statement? 1. World-wide per capita income began to increase in the late 1700s. 2. Since 1960 world-wide per capita income has increased as output growth has outpaced population growth. 3. According to Lucas, currently per capita GDP for the wealthiest countries in the world is about 15X that of the poorest countries. 4. Each of 1-3 is false. 5. Neither of 1-3 is false, each is true. [3]Which of 1-3 is a true statement about the U.S. economy? 1. Currently the average U.S. citizen works fewer hours than the average French citizen. 2. The U.S. experienced a productivity slow-down in the 1970s. 3. From the 1960 to 2000 most of the output growth in the U.S. was due to an increase in the EPR. 4. Each of 1-3 is true. 5. Each of 1-3 is false. [4]Since World War II which of 1-3 is a true statement about the U.S. economy? 1. Per capita output has remained relatively constant. 2. Inflation has risen steadily. 3. The price level, measured, say, by the CPI, has risen steadily. 4. Each of 1-3 is true. 5. Each of 1-3 is false. [5]During the current year, Jessica sold her house, built two years ago, to a realtor for $175,000. The realtor then sold the house to Dave for $185,000. How much does GDP increase due to these transactions? 1. $10,000 2. $175,000 3. $185,000 4. $360,000 5. $0
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2 [6]The presence of involuntary part-time workers 1. causes the official unemployment rate to underestimate actual unemployment 2. causes the official unemployment rate to overestimate actual unemployment 3. has no effect on the accuracy of the official unemployment rate 4. is accounted for in the official unemployment rate 5. is insignificant in the U.S. economy and thus is no cause for concern [7]Which of the following is included in GDP? 1. Social security payments to retirees. 2. The sale prices of all previously built homes. 3. The estimated rental value of a family-owned home. 4. Each of 1-3. 5. Neither of 1-3. [8]Full employment occurs when 1. there is no frictional unemployment. 2. there is no structural unemployment.
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This note was uploaded on 03/18/2008 for the course ECON 2006 taught by Professor Rdcothren during the Fall '08 term at Virginia Tech.

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Exam1 - Exam 1 Economics 2006, Fall 2007 [1]Which of 1 and...

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