ECON 1000 Exam (2008)

ECON 1000 Exam (2008) - Questions 11 & 14 (multiple...

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C A R L E T O N U N I V E R S I T Y DURATION: 2.5 HOURS     No. of Students: 140 ECON 1000 A Course Instructor(s): George Kowalski Students MUST count the number of pages in this examination question paper before beginning to write, and report any discrepancy immediately to a proctor. This question paper has ten (10) pages. This examination paper MAY be taken from the examination room. In addition to this question paper, students require: an examination booklet yes no a Scantron sheet yes no EXAMINATION CONSISTS OF 2 PARTS AS FOLLOWS: PART A -- MULTIPLE CHOICE -- 60 Marks PART B -- SHORT ANSWERS -- 40 Marks PART A—MULTIPLE CHOICE. DO ALL QUESTIONS. 2 MARKS EACH Answer on attached sheet (found at the end of exam). Be sure to detach and hand in. 1. Over time people have come to rely more on market-produced goods and less on goods that they produce for themselves. For example people eat at restaurants relatively more and prepare their own meals at home relatively less. By itself this change would a. make GDP fall over time. b. not make any change in GDP over time. c. make GDP rise over time. d. change GDP, but in an uncertain direction. 2. If a country reported a nominal GDP of 115 billion in 2007 and 125 billion in 2006 and reported a GDP deflator of 85 in 2007 and a deflator of 100 in 2006, then from 2006 to 2007 real output a. and prices both rose. b. rose and prices fell. 1 Final E X A M I N A T I O N August 2008 Authorized Memoranda Non-programmable calculator allowed.
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c. fell and prices rose. d. and prices both fell. 3. Suppose the price of a gallon of ice cream rises from $4 to $5 and the price of coffee rises from $2 to $2.50 . If the CPI rises from 150 to 200, people will likely buy a. more ice cream and more coffee. b. more ice cream and less coffee. c. less ice cream and more coffee. d. less ice cream and less coffee. Scenario 1 Grant Smith was a doctor in 1950 and made about $12,000 a year. His daughter Lisa Smith also is a doctor and last year she made about $175,000 in 2007. The price index in 1950 was 17.6 and the price index was 177 in 2007. 4. Refer to Scenario 1 . What is Grant's income in 1950 measured in 2007 dollars? a. $19,128 b. $21,240 c. $120,682 d. $173,600 5. Refer to Scenario 1 . What is Lisa's income in 2007 measured in 1950 dollars? a. $15,667 b. $17,401 c. $19,322 d. None of the above are correct. 6. Suppose that the real interest rate was 3 percent and the inflation rate was 1 percent. a. The dollar value of savings increased at 2 percent, and the value of savings measured in goods increased at 3 percent. b.
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ECON 1000 Exam (2008) - Questions 11 & 14 (multiple...

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