ECON_120_chap_2_test_ans

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Unformatted text preview: < Your location: Assessments > View All Submissions > View Attempt View Attempt 1 of 1 Title: Exam Two (Ch5. 6. B. 9) Started: November 1, 2009 10:03 PM Submitted: November 2, 2009 12:03 AM Time spent: 02:00:17 Total score: 21MB 2 52.5% Total score adjusted by 0.0 Maximum possible score: 40 Dane If an economy produced twenty pizzas at $10 each and fifteen liters of cola at $5 each, the total value of these goods and services would be: Student Value Correct Answer Feedback Response A. $2oo. e. 1;?5. 5,4. c. $275. 100% :7 o. $2,?so. Score: 1,F1 A rancher raises sheep. Once a year he shears them and sells the raw wool to a processor who cleans it and spins it into yarn. The yarn is then sold to a knitting mill, which produces and sells sweaters. In calculating GDP we would count: Student Value Correct Answer Feedback Response A. the raw wool, the yarn and the sweaters. B. only the yarn and the sweaters. ,5. C. only the 100% [7 sweaters. 0. only the raw wool and the yarn. Score: 1f1 Which of the following is not a component of gross domestic product? Student Value Correct Answer Feedback Response ,5," A. net exports 0% B. government purchases C. purchases [7 by consumers of used goods 0. purchases by consumers of finished goods Score: 0f1 If in the third quarter of 2005 total investment spending was $2,099 billion and depreciation was $1,604 billion, then the amount counted in GDP, which is known as gross investment, would be: Student Value Correct Answer Feedback Response A. $2,o99 r, UIIIIUII. 5;. a. $495 o% billion. c. $1,5o4 billion. o. $3,7o3 billion. Score: 0f1 Which of the following should be included in US GDP? Student Value Correct Answer Feedback Response A. a computer manufactured in Mexico and sold in the United States 0. a computer manufactured in Mexico by a US. firm and sold in the United States 9'. C. a computer 100% manufactured in the United States and sold in Mexico 7| D. a used computer manufactured in the United States and sold in Mexico Score: 1f1 The value of goods produced in a previous year but sold in the current year is added to the GDP for the current year. Student Value Correct ilnswer Feedback Response A. True 9'. 0. False 100% [7 Score: 1f1 We ADD to the GDP when goods produced abroad are sold in the United States. Student Value Correct answer Feedback Response i—‘i. True B. False 100% [7 Score: 131 Use the foiiowingiI information to answer the next severai questions: Scenario 1: Imagine that an economy produces two goodsJ hot dogs and baseballs. In the year 2000 the economy produces 20 hot dogs and 15 baseballs. and the prices of hot dogs and baseballs were $2 and $5. respectively. In the year 2001 the economy produces 25 hot dogs and 20 baseballs, and the prices of hot dogs and baseballs were $3 and $6. respectively. Based on the information in Scenario 1, real GDP in the year 2001 (in 2000 dollars) in this economy is: Student Value Correct ilnswer Feedback Response in. $255. a. $1oo. c. $4o. g. o. $15o. 100% :7 Score: lfl Use the foflowfng information to answer the next seven.' questions: Scenario 1: Imagine that an economy produces two goods, hot dogs and baseballs. In the year 2000 the economy produces 20 hot dogs and 15 baseballs, and the prices of hot dogs and baseballs were $2 and $5, respectively. In the year 2001 the economy produces 25 hot dogs and 20 baseballs, and the prices of hot dogs and baseballs were $3 and $6, respectiyely. Based on the information in Scenario 1, real GDP grew by about percent from 2000 to 2001. Student Value Correct answer Feedback Response 9, A. 12.2 0% B. 30 [7 C. 1.30 D. 222 Score: 0,:‘1 1|]. "Recession" refers to a period when the economy: Student Value Correct answer Feedback Response 9', fl. fails to 100% [7 grow for at least six months. 0. suffers due to political instability. C. grows rapidly. D. experiences a rise in liying standards. Score: 1,F1 11. If Sam does not have a job and is not looking for work, he is considered: Student Value Correct Answer Feedback Response A. unemployed and in the labor force. B. unemployed and not in the labor force. 9', C. not in the 100% [7 labor force. D. unemployed. Score: 1f1 12. People who are only working part-time, but want to be working full-time, are classified officially as: Student Value Correct Answer Feedback Response A. unemployed and in the labor force. B. unemployed and out of the labor force. 9', C. employed 100% [7 and in the labor force. D. employed and out of the labor force. Ctr‘nrcl' 1 r1 uuulu- 4.14. 13. Employment status of the working age population of Somenation is approximately: Emplyed full—tune 1500 Employed port-hm: 5CD Notemployed and looking For work 150 NotemPI-oyed ard notlooklng for work 150 Table 6.1 Given the data in Table 6.1; the unemployment rate of Somenation is approximately: Student Value Correct answer Feedback Response a. 94 percent. 31' B. 11 100% Q percent. C. 22 percent. D. 1? percent. Score: 1f1 14. Employment status of the working age population of Somenation is approximately: Emplyed full—time 1500 Employed part-13m: 503 Notemployed and looking For work 150 NotemPI-oyed ard notlooklng for work 150 Table 6.1 Given the data in Table 6.1; if the workers who are "not employed and not looking for work" were counted as not employed and in the labor force, the unemployment rate of Somenation would be: Student Value Correct nnswer Feedback Response A. 93 percent. El. 11 percent. C. 22 percent. . l? 100% El percent. Score: 1f1 3; U 15. Telephone operators who have lost theirjobs as a result of computerized switchboards are an example of: Student Value Correct Answer Feedback Response 31' fl. structural 100% Q unemployment. B. cyclical unemployment. C. frictional unemployment. D. voluntary unemployment. Score: 1y‘1 16. At full employment there is no: Student Value Correct Answer Feedback Response A. structural unemployment. 31' B. cyclical 100% Q unemployment. C. frictional unemployment. D. all of these Score: 1.11 1?. The fol owing table lists the basket of goods in the Carnivore Price Index (Assume 1993 is the base vear.) 1993 1993 1994 I994 I995 1995 Quantity Price Quantity Pn'ce Quantity Price Steak 4 $300 5 $350 4 $4.00 PorkChops 5 $100 I" 53.00 B $3.00 Liver 3 $100 1 $100 2 “31.50 Table 6.2 Using the information in Table 6.2, the Carnivore Price Index for 1995 is: Student Value Correct answer Feedback Response 31' 1'31. 154-. 0% B. 109. c. 12?. a D. 114-. Score: Dfl 13. The fol owing table lists the basket of goods in the Carnivore Price Index (Assume 1993 is the base vear.) 1993 1993 1994 1994 1995 1995 Quanfity Price Quantity Price Quantity Price Steak 4 $300 5 $350 4 $4.00 PorkChoPs 5 $100 P $3.00 8 $3.00 Liver 3 $100 '1 $100 1 I431.50 Table 6.2 Using the information in Table 6.2, the inflation rate from 1993 to 1994 is about: Student Value Correct Answer Feedback Response A. 114- percent. B. 4-1 percent. .1- c. 14 100% 5. percent. D. 11 percent. Score: 1.11 19. The chain index for GDP and the CPI differ in that the CPI: Student Value Correct Answer Feedback Response A. excludes price changes from used and imported goods while the chain index includes these price changes. . asks how 100% 5 much a fixed basket of goods costs in the current year as compared to the cost mc Ham—n :4 UZI Ul Ll IUJIS same goods in a base year while the chain index takes an average of price changes using base years from neighboring years. C. is calculated by the Commerce Department while the chain index is calculated by local newspapers. D. is calculated in nominal terms and the chain index is calculated in real terms. Score: 131 2|]. Suppose that in 1995 the chain—type price index for GDP in Norway is 120 and the chain type price index in Finland is 140. In 1996 the price index in Norway is 132 and the price index in Finland is 152. You could conclude that: Student Value Correct nnswer Feedback Response A. Norway is a more expensiye place to liye than Finland. 9'. B. Finland is a 0% more expensiye place to live than Norway. C. Norway's rate of inflation is higher than Finland's. D. Finland's rate of inflation is higher than Norway's. Score: Dfl Tl 21. Suppose real GDP was 20D in year 1 and 210 in year 2. The growth rate of real GDP is: Student Value Correct nnswer Feedback Response A. 2.5 percent. 9'. B. 5 percent. 100% [T C. .10 percent. D. ID percent. Score: 1f1 22. Suppose that real GDP starts at 100 and grows at a rate of 6 percent per year for two years. In the third year real GDP would be: (“d-"Anna- “all... (“nu-unrul- n n p . . . nu ran-Ila-u-J. 23. 24. 25. DLULIISIIL 'I'CIILIIS Response A. 106. 0.136. (3.11236. g}. D. 118.50. 0% Score: 031 LUI I ELI. HIIDWUI ruuuuuux Suppose the annual growth rate of GDP in Japan is 4 percent. In 35 vears; GDP in Japan will double: Student Value Response A. 2 times. E. 3.5 times. C. 1?.5 times. 0% D. 10 times. Score: 0n Correct answer Feedback Nations with low levels of GDP per capita mav converge to richer nations if: Student Value Response A. nations with high levels of income experience a continuously increasing growth rate. ,5. B. nations with 100% lower levels of income grow more guicklv than those with higher levels of income. C. nations with lower levels of income spend less on investment. D. nations with lower levels of income grow more slowly than those with higher levels of income. Score: 1f1 Correct Answer Feedback Most economists believe that convergence of GDP per capita between developing and developed nations. Student Value Response A. has occurred; has occurred B. has not occurred; has occurred 5, C. has 100% occurred; has not occurred D. has not occurred; Correct Answer Feedback between developed nations and nas not occurred Score: 1f1 26. If a firm increases its use of capital while holding constant the number of workers employed, the firm is said to experience: Student Value Correct Answer Feedback Response A. capital augmentation. B. investment deepening. C. labor intensity. g}. D. capital 100% [7 deepening. Score: 1.:‘1 2?. As the stock of capital grows there typically will be depreciation. Student Value Correct Answer Feedback Response A. less g}. B. more 100% [7 C. the same amount of D. no Score: 1f1 28. Nations who borrow from abroad to support current consumption: Student Value Correct Answer Feedback Response A. will always be better off in the future. B. will always I? sacrifice future consumption. g}. C. may sacrifice 0% future consumption. D. will always sacrifice current consumption. Score: 031 29. Suppose the growth rate of GDP in the U.S. is 4.2 percent. If 2.1 percent and 1.0 percent of GDP growth are due, respectively. to capital and labor growth, the amount resulting from technological progress is: Student Value Correct Answer Feedback Response A. 1.1 [3 percent. 5. B. 2.1 0% percent. C. 0 percent. D. 3.1 percent. Score: 0f1 3|]. The contribution to output growth of technological progress is estimated by how much of the output growth can be explained by the growth in inputs. Student Value Correct Answer Feedback Response g}. h. True D% B. False [7 Score: Oil 31. Real business cycle theory emphasizes the role of: Student Value Correct nnswer Feedback Response fl. demand shocks as a cause of economic fluctuations. g}. B. technology 1DD% f7 shocks as a cause of economic fluctuations. C. shocks to the money supply as a cause of economic fluctuations. D. government spending as a cause of economic fluctuations. Score: 1fl 32. Which of the following does not shift the aggregate demand curve? Student Value Correct nnswer Feedback Response iii. an increase in the supply of money .5... B. an D% increase in GDP in Japan (3. a decrease in taxes D. a decrease F in the price level Score: Oil 33. Which one of the following would shift the aggregate demand curve to the left? Student Value Correct answer Feedback Response .5. A. an increase 0% in the money supply B. an increase in government spending C. an increase In exports D. an increase [7 In taxes Score: Oil 34. \\‘~ Price level P Output 1; Figure 9.1 Figure 9.1 shows three aggregate demand curves. A decrease in the supplv of monev could result in a movement from: Student Value Correct Answer Feedback Response Iii. ADl t0 0 N30. B. AD1 t0 0% N32. C. bto a. D. bto c. Score: 0;“1 35. If the government increases its purchases of goods and services bv $1000 and the MPC is 5’5; GDP and income will eventuallv increase bv: Student Value Correct Answer Feedback Response a. wee. a. $1,750. o% c. $4,ooo. 0 D. $?,soo. Score: 0;”1 36. If the government increased its purchases of goods and services bv $5000; and this resulted in an eventual increase in GDP and income of 25000, the MPS would be equal to: Student Value Correct nnswer Feedback Response A. s. e. 2.5. c. o3. o% D. 0.2. f; Score: 0;”1 3?. Assuming a long—run aggregate supplv curve, an increase in the monev supva results in in output and In prices. Student Value Correct nnswer Feedback Response A, a o% decrease; a decrease B. an increase; no change C. a decrease; no change D. no change; If? an increase Score: 0;:‘1 33. Refer to Figure 9.2. A decrease in government spending is represented bv a movement from: Pr'mlloulP UU‘WU Fig.1!!! 9.? A. ‘ 3. gm. ‘ D. Score: 39. Refer to Figure 9.2. Jilin increase in the price of oil is represented bv a movement from: fijfii. ‘3. | C.A51toA52. | D. A52 to A51. Score: 4|]. Student Response .C‘iD1 t0 .D'iDz. N32 120 N31. #31 to #52. #32 to #31. Dfl Student Response .-'3.D1tCI N32. ADQ 1:0 N31. Dfl Value D °fo Value D % Correct Answer fibulaan Correct Answer min-IF Feedback Umpqu Fimm 9.? Feedback UU‘DIIU Fig.1!!! 9.? Refer to Figure 9.2. A simultaneous increase in the money supply and increase in the price of oil is represented by a movementfiem: Student Value Correct Answer Feedback Response A. ate b. B. dte a. | C.l:utec. m | |fiJ D. ate :1. 0% | Score: Dfl ...
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