Exam 2 Form 5 Econ 25200 Fall 2008

Exam 2 Form 5 Econ 25200 Fall 2008 - Econ 25200 Midterm...

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Econ 25200 Midterm Exam 2 Form 5 Thursday, October 16 th , 2008 Name ( Please PRINT ): Last Name First Name Student ID #: Place a checkmark next to your section number then record the 4-digit section number on the scantron. 0001 Tuesday / Thursday 7:30 – 8:45 a.m. 0002 Tuesday / Thursday 9:00 – 10:15 a.m. No brimmed hats are allowed. If you are wearing a hat with a brim, turn the brim to the back. No calculators are allowed. All cell phones are to be turned off and put away. You will be in danger of receiving a zero on the exam if your cell phone is on or not put away. Do not begin the exam until the instructor tells you to. While waiting, fill out your scantron completely and accurately and read the remaining instructions on this page. Include the form letter for this specific exam. If any suspicious behavior is noted, you will be moved and may also receive a zero on the exam. Cheating will not be tolerated. Exam 1 contains 36 questions on 9 pages. Please be sure that you have 9 pages in your test booklet. If not, please inform the instructor before you begin the exam. Please mark all answers on BOTH the test booklet and the scantron. Once you are finished, please take both your test booklet AND answer sheet to the proper station. Questions 1 - 5 are “green star questions,” and 6 – 40 are based on textbook chapters 7 – 10. There is no deduction for wrong answers, so you should attempt all questions; all questions count equal weight; overall this exam is 20% of the course grade. Econ 252 Page 1 of 7 Fall 2008 Exam 2 Form 5
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1. Assuming that we can measure GDP by using weighting by market prices is, according to the lecture coverage: (a) a value-free method of comparison; (b) implicitly assumes that all dollars are equally valuable; (c) is an impeccable and totally reliable way to capture the real value of goods and services; (d) both (a) and (c). 2. In lecture coverage it was suggested that an example of the co-existence of negligible growth and low inflation was: (a) Japan in the 1990s; (b) the U.S. and Western Europe in the 1970s after the oil-price shocks; (c) the U.S. in the mid-2000s; (d) none of the above, since economic theory says such a combination is impossible. 3. In the lecture coverage it was said that; (a) only government expenditure can crowd out productive private investment; (b) nothing can crowd out productive private investment, since the market always works; (c) misallocated private investment can also crowd out productive private investment; (d) government expenditure on public investment, such as infrastructure, has no productive value. 4. According to lecture coverage of the current financial crisis: (a) government regulation is entirely to blame, since markets can never fail; (b) the government is entirely blameless, since greed was the sole cause of the problem; (c) the government was partly to blame for not providing institutions to facilitate the intermediation of mortgages;
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This note was uploaded on 02/10/2010 for the course ECON 251 taught by Professor Blanchard during the Spring '08 term at Purdue University-West Lafayette.

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Exam 2 Form 5 Econ 25200 Fall 2008 - Econ 25200 Midterm...

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