midterm 2 spring 08 answers

midterm 2 spring 08 answers - SECTION_ ECON 162B-90, 91...

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SECTION______ BU ID#________ NAME_______Answer Key _____________ ECON 162B-90, 91 Kenny Christianson Spring 2008 April 16, 2008 MIDTERM EXAMINATION NUMBER TWO (A) PART I MULTIPLE CHOICE (30 points) Choose the single best answer. 1. To measure the contributions of each sector of the economy, economists use a. real GDP. b. the final-goods approach. c. the value-added approach. d. nominal GDP. e. none of the above. 2. If the economy experiences inflation, then in years after the base year a. nominal GDP is greater than real GDP. b. nominal GDP is less than real GDP. c. real GDP must be decreasing. d. the price index will be less than 100. e. nominal GDP will equal real GDP. 3. The overall balance of payments a. is negative if imports exceed exports. b. is always equal to zero due to double-entry bookkeeping. c. increases as exports sold to other countries rise. d. decreases as exports sold to other countries rise. e. none of the above. 4. If Russia is experiencing a current account deficit, then a. its exports are greater than its imports. b. it is not trading with other countries. c. it must have a deficit in its capital and financial accounts. d. it must have a surplus in its capital and financial accounts. e. it is buying more financial assets from the rest of the world than it is selling to the rest of the world. 5. Suppose that in 2005, one dollar was worth 120 yen. In 2008, one dollar was worth 100 yen. Then, from 2005 to 2008, a. the dollar depreciated. b. the yen appreciated. c. the dollar appreciated. d. the yen depreciated. e. both a) and b). 6. If one euro trades for $1.50, and if one pound trades for $3.00, then one pound should be equal to a. two euros.
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Econ 162B-90, 91 Spring 2008 Midterm Exam Two 2A b. one-half euro. c. four and a half euros. d. two dollars. e. 100 yen. 7. Which of the following individuals would be included in the labor force? a. Alberta does volunteer work from home. b. Bob is in prison for selling crack. c. Carol is currently serving in the military in Iraq. d. David was just laid off from his factory job and is actively seeking another form of employment. e. all of the above. 8. In March 2008, the unemployment rate in the United States a. remained constant at 4.8%. b.
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midterm 2 spring 08 answers - SECTION_ ECON 162B-90, 91...

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