{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Practice Problems I - ECON 502 Practice Problems I 1 Which...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Page 1 ECON 502 Practice Problems I 1. Which of the following statements about economic models is true? a) There is only one correct economic model. b) All economic models are based on the same assumptions. c) The purpose of economic models is to show how endogenous variables affect exogenous variables. d) Economists use different models to address different questions. 2. The assumption of continuous market clearing means that: 3. In a simple model of the supply and demand for pizza, the endogenous variables are: 4. In an economic model: 5. The amount of capital in an economy is a ______ and the amount of investment is a ______. a) flow; stock b) stock; flow c) final good; intermediate good d) intermediate good; final good 6. All of the following are a stock except : 7. All of the following transactions that took place in 2006 would be included in GDP for 2006 except the purchase of a:
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Page 2 8. All of the following actions are investments in the sense of the term used by macroeconomists except : 9. An increase in the price of imported goods will show up in: a) the CPI but not in the GDP deflator. b) the GDP deflator but not in the CPI. c) both the CPI and the GDP deflator. d) neither the CPI nor the GDP deflator.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern