Econ Practice Exam 1.2

Econ Practice Exam 1.2 - Practice Exam 1.2 1. A) B) C) D)...

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Practice Exam 1.2 1. Output per employed worker is called: A) average output. B) average standard of living. C) economic growth. D) output per person. E) average labor productivity. 2. The fraction of the working age population who would like to be employed, but can't find work or who are temporarily laid off from a job they expect to return to shortly is called: A) none of the other choices. B) the average labor productivity rate. C) the participation rate. D) the unemployment rate. E) the average standard of living. 3. A government budget deficit occurs when: A) government spending exceeds government revenue. B) government revenue exceeds government spending. C) exports equal imports. D) exports exceed imports. E) exports are less than imports. 4. Which of the following would be considered an example of structural policy? A) Privatization of government owned industries. B) A reduction in income taxes to stimulate consumer spending. C) Provision of additional cash to the banking system. D) An attempt to reduce the government budget deficit by reducing spending. E) Interest rate hikes by the Federal Reserve. 5. Which of the following statements is positive (as opposed to normative)? A) A tax cut will increase consumer spending. B) Large budget surpluses should be avoided. C) Higher taxes are needed. D) A tax cut that benefits high-income households is acceptable policy. E) Tax cuts should be designed to primarily benefit low-income households. 6. In Smallville last year, the population was 10, the number of employed workers was 5, and average labor productivity was at a rate
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of $20,000 per year. During that year total output in smallville was _____ and the average standard of living was _____. A) $200,000; $20,000 B) $200,000; $40,000 C) $20,000; $20,000 D) $100,000; $10,000 E) $100,000; $20,000 7. To measure GDP, economists add together the _____ of final goods and services produced. A) units
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This note was uploaded on 03/25/2008 for the course ECON 202 taught by Professor Amsler during the Spring '08 term at Michigan State University.

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Econ Practice Exam 1.2 - Practice Exam 1.2 1. A) B) C) D)...

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