Samplequestionsexam1 - Eco 301 Midterm I Sample Questions...

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Eco 301 Midterm I Sample Questions Part 1. Multiple-choice Questions 1. In 2001, Computers, Inc. produced personal computers worth $20 million. If $16 million worth were sold and $4 million worth remained unsold at year end and were added to inventories, how much did Computers, Inc. contribute to GDP in 2001? a. $4 million b. $12 million c. $16 million d. $20 million ANSWER: d 2 Suppose that the government collects $3 million in taxes, pays $2 million in Social Security benefits, and pays workers $1 million to sit at their desks and work as little as possible. The government’s contribution to GDP is (a) $0. (b) $1 million. (c) $3 million. (d) $3.5 million. ANSWER:b 3. In an economy with 4,000 unemployed people and 8,000 employed people, the unemployment rate is a. 50 percent b. 40 percent c. 33.3 percent d. 60 percent ANSWER:c 4. An example of a stock would be (a) real GDP. (b) savings. (c) investment. (d) the amount of money in circulation. Answer: D 5. GDP and GNP may differ (a) because some income generated by domestic production may be received as income by foreign residents. (b) because some intermediate good inputs are imported. (c) because some workers are illegal aliens. (d) whenever tariff rates become excessively high. ANSWER: A 1
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the next two questions deal with The Gizmo Company has the following production function. Number of
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This note was uploaded on 05/05/2010 for the course COM 4123 taught by Professor Ted during the Spring '10 term at SUNY Albany.

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Samplequestionsexam1 - Eco 301 Midterm I Sample Questions...

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