{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

midterm2 - ECON1002 Selected Midterm Questions Important...

Info icon This preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
ECON1002 Selected Midterm Questions
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
Important NOTES (page 1 of 2) These 9 questions were selected from Class A and B’s papers. They deserve attentions as they are identified as the worst attempted questions. Solutions to these questions will be uploaded to tutorial website in due course. The question papers will be kept as confidential. However, if you want to take a look at it (and your scantron answer sheet as well), you are allowed to visit moyin at her office hours. 4 Nov (Tue): 4:15-6:00pm 5 Nov (Wed): 1:15-3:00pm 6 Nov (Thur): 10:30-12:30noon; 4-5pm, Or, by mutually agreed appointments.
Image of page 2
Important NOTES (page 2 of 2) Results will be posted on tutorial website 4 Nov. Due to privacy concern, I will just post your U-No (with the last digit omitted) and your mark on the tutorial website, other personal information will NOT be included. However, if you do mind about the above arrangement and DO NOT want your mark to be disclosed on the tutorial website, please email Moyin ON OR BEFORE (31 Oct, Friday). I will omit your U-No and mark from the list and inform you personally via email. (HKU account only!) Moyin’s email: [email protected]
Image of page 3

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

View Full Document Right Arrow Icon
Q1 Over any specified period, which of the following statements gives the most complete picture of an economy’s structure: a) total production = planned total expenditure = GDP b) total production = total income = GDP c) total production = total income = planned total expenditure d) total production = total income = actual total expenditure ANS: D
Image of page 4
A&C refers to equilibrium conditions in SR AE model (Ch. 11) (Equi: planned AE= total prod) Remember, it may OR may not be realized in reality! In the reality, at any moment of time, unexpected changes in inventories may occur, so A&C are not correct.
Image of page 5

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

View Full Document Right Arrow Icon
B&D are more appropriate statements in describing the economy. As explained in the circular flow model: Total prod = total income = ACTUAL total expenditure, and they all equal to GDP GDP is just a figure/estimate in assessing a country’s total worth of production within a specified period of time D is a better answer than B because it FULLY describes the structure of the circular flow model, i.e. the economy
Image of page 6
Q2 Given the following consumption schedule, find out the Marginal Propensity to Save (MPS) out of disposable income.
Image of page 7

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

View Full Document Right Arrow Icon
Image of page 8
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