5 EC 102, Fall 2010 Midterm I, Version 2

5 EC 102, Fall 2010 Midterm I, Version 2 - ECON 102:...

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ECON 102: Introductory Macroeconomic Analysis FIRST MIDTERM EXAM, Version 2 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 “2” 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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Figure 10-1 1.
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Refer to Figure 10-1. Many countries in Africa strongly discouraged and prohibited foreign direct investment in the 1950s and 1960s. By doing so, these countries were essentially preventing a moment from a.
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B to A . b.
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B to C . c.
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D to C . d.
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A to B .   2.
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If the nominal interest rate is 6% and the inflation rate is 9%, then the real interest rate is a.
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-3%. b.
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3%. c.
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6.67%. d.
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15%.   3.
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Which of the following would reduce the labor force participation rate, all else equal? a.
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an increase in the number of people in the labor force b.
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a decrease in the unemployment rate c.
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an increase in the unemployment rate d.
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an increase in the working-age population   4.
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Discoura ged workers are a.
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workers who find their current jobs unfulfilling and are considering a job change. b.
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workers who have a part time job but want a full time job. c.
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workers who have consistently been looking for work for more than 4 weeks. d.
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workers who have stopped looking for work because they believe there are no jobs for them.   Table 7-7 2008 2009 Nominal GDP $ 10,000 $ 12,000 Real GDP $ 9,500 $ 10,500 5.
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Refer to Table 7-7. Given the information above, calculate the GDP deflator in 2008. a.
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87 b.
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95 c.
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105 d.
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114   6.
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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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