ch5 - Exam Name_

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Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) An economy that has no interaction with the rest of the world is called A) a closed economy. B) a rogue nation. C) an isolated economy. D) an interdependent economy. E) a parochial economy. 1) 2) In an economic model, an endogenous variable is A) determined outside the model. B) a variable that has no effect on the workings of the model. C) determined by the model itself. D) a stand - in for more complicated variables. E) closely linked to a closed economy. 2) 3) In an economic model, government spending is assumed to be A) not included in an open economy. B) endogenous. C) only an public goods. D) exogenous. E) not included in a closed economy. 3) 4) In a one - period economic model, the government budget constraint requires that government spending A) = taxes + borrowing. B) taxes + transfers + borrowing. C) = taxes. D) > 0. E) = taxes + transfers. 4) 5) In an economic model, A) exogenous variables determine endogenous variables. B) the government budget constraint determines exogenous variables. C) endogenous variables determine exogenous variables. D) fiscal policy determines endogenous variables. E) endogenous and exogenous variables are determined simultaneously. 5) 6) In the one - period competitive model we have been studying, A) both consumption and total factor productivity are endogenous. B) both consumption and total factor productivity are exogenous.
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This note was uploaded on 02/27/2011 for the course ECON 2051 taught by Professor Mckeon during the Spring '11 term at UWO.

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ch5 - Exam Name_

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