midterm_1_(ecn_1b_winter_2010)

midterm_1_(ecn_1b_winter_2010) - University of California,...

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Page 1 of 8 University of California, Davis Department of Economics ECN 1B Midterm Examination 1 Winter 2010 B. Modjtahedi ______________________________________________________________________________ Question 1 Unemployed is defined as a person who: A. Does not have a job. B. Is not willing to work and does not have a job. C. Is not willing to work but has a job. D. Is willing to work but does not have a job. E. None of the above. Question 2 The dollar value of all the goods produced by the Chrysler Corporation in a year might well exceed the dollar value of all the goods produced by a small country such as Jordan or Nepal. Still, the analysis of Chrysler Corporation falls in the realm of microeconomics while we should use macroeconomic tools to study the economies of Jordan or Nepal. Why? A. Because small countries do not have well-developed macroeconomic markets. B. Because the fallacy of composition does not apply to small countries. C. Because Chrysler is just one decision-making unit. D. Because a small country can be treated as just one decision-making unit. E. None of the above. Question 3 Which of the following is an example of indirect finance? A. Your uncle borrows some money from you. B. Your uncle lends some money to the local pizza shop. C. The pizza shop borrows money from a bank. D. Your uncle buys the stock of a corporation. E. None of the above. Question 4 What are the three major macroeconomic issues? A. Growth and cycles, inflation, high interest rates. B. Growth and cycles, unemployment, unstable stock prices. C. Growth and cycles, inflation, unemployment. D. Inflation, stock prices, recessions. E. None of the above.
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Question 5 Year Price of Good 1 Quantity of Good 1 Price of Good 2 Quantity of Good 2 2006 $4 5 $8 10 2007 $4 10 $8 20 The table above shows the prices and quantities of two goods produced in a country in 2006 and 2007. These are the only goods produced in the country. What is the GDP deflator in 2007 (base year = 2006)? A. $40 B. $50 C. $110 D. $200 E. None of the above (Should be able to do this without any calculation) Question 6 Which of the following is NOT a stock variable? A. The amount of money you have in the bank. B. The number of tractors on your uncle’s farm. C. The number of books on the bookshelf. D. The amount of money you spend. E. None of the above. Question 7 Which of the following implies that real GDP per capita is not a perfect measure of the welfare of a nation? A. It does not tell us anything about the distribution of goods and services among the population. B. It does not include the amounts of “bads” we produce, such as air pollution. C. It does not include the things people care about, such the level of crime or stable families. D.
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This note was uploaded on 03/24/2010 for the course ECON Econ1B taught by Professor Baghermodjtahedi during the Spring '09 term at UC Davis.

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midterm_1_(ecn_1b_winter_2010) - University of California,...

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