Sample Final (1) - \Yonsei University Summer 2010 Please...

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\Yonsei University Summer 2010 Please note that none of the questions of this sample final will be exactly reproduced in the actual Final. Make sure that you understand the underlying concepts behind each question so you can answer similar but not exactly equal questions. The sample final is not a reference for the length of the actual final. Please note that the final is COMPERHENSIVE while the sample final only covers the last section of the course (from last midterm to the final lecture). Use the sample Midterm and Actual Midterm to study for the first part of the course Multiple Choice Questions 1. You are given the following information about the economy: Public saving is _____ ; private saving is _______ and national saving is _____b_. A. 500; 2,000; 500 B. 500; 2000; 2,500 C. 2,000; 500; 3,500 D. 750; 500; 2,750 2. Where Y is GDP, C is consumption, I is investment, T is net taxes, and G is government spending, if there is no trade, then private saving equals: b A. C + I + G - T B. Y - T - C C. Y - T – G, D. Y - C - I 3. Net taxes equal the amount D A. the government pays the private sector plus the amount of private sector pays the government. B. the government pays the private sector minus the amount the private sector pays the government. C. the business sector pays the government minus the amount the private sector pays the government. D. the private sector pays the government minus the amount the private sector receives from the government. 4. On January 1, 2007, Jay purchased shares of stock for $10,000. On December 31, 2007, the same shares are now worth $7,500. Based on this information: D A. Jay's saving for the year increased by $2,500. B. Jay's saving for the year decreased by $2,500. C. Jay has a $2,500 capital gain for the year. D. Jay has a $2,500 capital loss for the year.
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5. Chris earns $1,500 per week and spends $1,000 per week on living expenses, puts $200 in a savings account, and buys $300 worth of shares in a stock mutual fund. Chris's saving is ____ and Chris's saving rate is ___D__. A. $200; 13.3% B. $200; 20% C. $300; 20% D. $500; 33.3% 6. The introduction of new technologies _A___ the real interest rate and ____ the equilibrium quantity of national saving. A. increases; increases B. increases; decreases C. decreases; decreases D. decreases; increases 7. Holding other factors constant, if a tax increase moves the government budget from deficit to surplus, then the real interest rate will ___ and the equilibrium quantity of national saving and investment will ____. A. increase; increase B. decrease; decrease C. increase; not change D. decrease; increase 8. If net taxes paid by households increase: a A. private saving will decrease. B. private saving will increase.
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Sample Final (1) - \Yonsei University Summer 2010 Please...

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