samplemid_ans - Business Conditions Analysis ECON 736...

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Business Conditions Analysis Prof. Yamin Ahmad ECON 736 Sample Midterm Exam Name___________________________________ Id # _______________________ Instructions: There are two parts to this midterm. Part A consists of multiple choice questions. Please mark the answers to the multiple choice questions on the exam paper Part A has 20 questions and is worth 60%. Part B is worth 40% and consists of short answer questions. Please answer any two of the three questions in the space provided. Answering more than two questions in part B will not gain you more than 40%. Part A: MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) A firm ʹ s value added equals: A) its revenue minus all of its costs. B) its revenue minus its wages and profit. C) its revenue minus its wages. D) its revenue minus its cost of intermediate goods. E) none of the above Answer: D 2) Use the following information to answer this question: 100 million people are working, 10 million are not working but are looking for work, and 20 million are not working and have given up looking for work. The official unemployment rate for that month is: A) 7.7%. B) 9.1%. C) 10%. D) 23%. E) 30%. Answer: B 3) In the United States, someone is classified as unemployed if he or she: A) does not have a job, has recently looked for work, and is collecting unemployment insurance. B) does not have a job, and is collecting unemployment insurance. C) does not have a job. D) does not have a job, or else has a job but is looking for a different one while continuing to work. E) none of the above Answer: E 1
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A) the sum of the total number of individuals who are employed and the officially unemployed. B) the total number of individuals who are 16 years old and older, but not retired. C) the sum of the total number of individuals who are employed, the officially unemployed, and discouraged workers. D) the total number of individuals who are employed. E) none of the above Answer: A 5) The GDP deflator provides a measure of which of the following? A) the ratio of GDP to the number of workers employed B) the ratio of GDP to the size of the population C) the ratio of nominal GDP to real GDP D) real GDP divided by the aggregate price level E) the price of a typical consumer ʹ s basket of goods Answer: C 6) Changes in GDP in the short run are caused primarily by: A) technology. B) supply factors. C) demand factors. D) capital accumulation. E) all of the above Answer: C 7) Deflation generally occurs when which of the following occurs? A) nominal GDP does not change B) the consumer price index is greater than the GDP deflator C) the consumer price index decreases D) the rate of inflation falls, for example, from 4% to 2% Answer: C 8) Which of the following components of GDP is the largest for the United States? A) exports
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samplemid_ans - Business Conditions Analysis ECON 736...

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