ECON204 - Midterm2 - F08

# ECON204 - Midterm2 - F08 - :3 2 r Lj f:J~-r!t~_Hayes 204...

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Unformatted text preview: :3 2 r-; Lj f:J~-r !t~ _Hayes 204 - 2nd Midterm Fall 08 Student: _ 1. The key indicator of a country's living standard and economic well being is: A. the interest rate. B. the inflation rate. C. real GDP. @ real GDP per person. E. nominal GDP per person. 2. Real GDP per person in Northland is \$30,000, while real GDP in Southland is \$10,000, However, Northland's real GDP per person is growing at 1 % per year and Southland's is growing at 3% per year. If these growth rates persist indefinitely, then: A. Northland's real GDP per person will decline until it equals Southland's. B. Northland's real GDP per person will always be greater than Southland's. C. Southland's real GDP per person will always be less than Northland's. @Southland's real GDP per person will eventually be greater than Northland's .. E. Southland's real GDP per person will catch up to Northland's, but never exceed Northland's. 3. Assume that the share of population employed in all countries is 50 percent. Based on the information below, which country has the smallest real GDP per capita? Country A B C D E (6) Country A B. Country B C. Country C D. CountryD E. Country E Population (millions) 100 150 75 250 95 Average Labor Productivity (\$) 2,000- - - - - t T 10,000 t T 25,000 _ l,> 50,000- v 60,000- 1 / SO-;: ': , f f i =1) ~O ' ~~l-\ ~ ~ (Or aoo "{> ~~~ I ~ ~t>.C... ( 3~ . ~ 2.S. 000 ::.\> <:;'(0 (;;,. G <c..,.AC, \ 7- ~::: SO, DC ::;\> 40() ~~ 4":\. c;-:: e-,OIOOO ;:c\> j/l.~3. Z. EAc.\.-\ 4. The principle of diminishing returns to capital states that if the amount oflabor and other inputs employed is held constant, then the greater the amount of capital in use the: A. less is produced. B. more production is wasted. C. less production is wasted .. D. the more an additional unit of capital adds to production. @ the less an additional unit of capital adds to production. 5. start new economic enterprises, while run the enterprises on a day-to-day basis. @ entrepreneurs; managers B. mangers; entrepreneurs C. mangers; laborers D. workers; mangers E. entrepreneurs; laborers 6. A production function shows the relationship between: A. real and nominal variables. ~ average labor productivity and the share of population employed. . ts and outputs. D. inflation and unemployment. E. real GDP and the unemployment rate. 7. In the United States the real wages of the least-skilled, least educated workers have __ and the wages of best-educated, highest skilled workers have _ A. increased; increased (B) declined; increased c: increased; declined D. declined; declined E. declined; remained constant 8. The real wage is the: @ price of labor. B. marginal product of labor. C. supply of labor. D. demand for labor....
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## This note was uploaded on 04/07/2011 for the course ECON 204 taught by Professor Benito during the Fall '08 term at Sonoma.

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ECON204 - Midterm2 - F08 - :3 2 r Lj f:J~-r!t~_Hayes 204...

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