3 EC 102, Fall 2010 Midterm I, Version 1

3 EC 102, Fall 2010 Midterm I, Version 1 - ECON 102:...

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ECON 102: Introductory Macroeconomic Analysis FIRST MIDTERM EXAM, Version 1 October 13, 2010 This exam contains 30 multiple choice questions. Identify the letter of the choice that best completes the statement or answers the question. Each question is worth an equal number of points. Be sure to answer questions on the bubble answer sheet provided. Any questions answered on the test question sheets will not be counted. Calculators are allowed. _______________________________________________ Please write your name on the test sheet and on the bubble sheet. VERY IMPORTANT : Write “1” in the space provided on the bubble sheet to indicate the version of your exam. Both the test sheet and the bubble sheet must be turned in at the end of the exam. _______________________________________________
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1.
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Between 2008 and 2009, if an economy's exports rise by $8 billion and its imports fall by $8 billion, by how much will GDP change between the two years, all else equal? a.
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The increase in exports is offset by the decrease in imports, so there is no change in net exports and no effect on GDP. b.
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Net exports will increase GDP by $8 billion. c.
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Net exports will decrease GDP by $8 billion. d.
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Net exports will increase GDP by $16 billion.   2.
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If prices are rising on average, then a.
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real GDP will be greater than nominal GDP in the years before the base year. b.
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real GDP will be less than nominal GDP in the years before the base year. c.
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real GDP will always be equal to nominal GDP. d.
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real GDP will be greater than nominal GDP in the years after the base year.   3.
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Accordin g to the article "The poor and the rich," which of the following features of the neoclassical growth model was called into question by the "new growth theory"? a. b.
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Constant returns to scale The neoclassical consumption function c.
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The role of government expenditure d.
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The law of diminishing returns   Table 7-6 2006 2009 Product Quantity Price Quantity Price Camera 100 $10 120 $12 Legal services 50 15 45 20 Books 200 40 210 45 4.
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Refer to Table 7- 6. Suppose that a very simple economy produces three goods: cameras, legal services, and books. Suppose the quantities produced and their corresponding prices for 2006 and 2009 are shown in the table above. What is real GDP in 2009, using 2009 as the base year? a.
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$28,885 b.
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$11,790 c.
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$11,200 d.
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$10,275   5.
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woodwor ker and charges $125 an hour for his time manufacturing custom-made wood products. For his wife's birthday, he designs and creates an intricate birdseye maple jewelry box that takes him 15 hours to complete. By how much and in what direction does GDP change as a result of his efforts? a.
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3 EC 102, Fall 2010 Midterm I, Version 1 - ECON 102:...

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