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final-solution - Final Examination Economics 1101, Section...

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Final Examination Economics 1101, Section 10 Name: TUiD: You have 1 hour 20 minutes to ﬁnish the exam. The exam consists of ﬁfty (50) multiple-choice questions, each worth one (1) point for a total of 50 points. If you have any doubts about any question feel free to ask the examiner. This is a closed book, closed notes exam. Use of cell-phones, internet etc. is prohibited during the exam. Any person found cheating will earn an F grade for the course. 1. The term CPI stands for the (a) Consumer Protection Index. (b) Consumer Price Index . (c) Corporate Price Index. (d) Corporate Proﬁt Index. 2. If the CPI basket costs \$35 in the base period but costs \$42, what is the CPI in the next period? (a) 83.3 (b) \$42 (c) 20 percent (d) 120 3. Using the notation P t to designate this period’s price level and P t - 1 to designate last period’s price level, the formula for measuring the inﬂation rate from last period to this period is (a) [( P t - P t - 1 ) /P t ] × 100. (b) [( Pt - 1 - P t ) /P t - 1 ] × 100. (c) [( P t - P t - 1 ) / P t - 1 ] × 100 . (d) [( P t - 1 - P t ) /P t ] × 100. 4. The best deﬁnition for economic growth is (a) a sustained expansion of production possibilities measured as the increase in real GDP over a given period. (b) a sustained expansion of production possibilities measured as the increase in nominal GDP over a given period. (c) a sustained expansion of consumption goods over a given period. 1

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(d) a sustained expansion of production goods over a given period. 5. If we compare real GDP per person in China to real GDP per person in the United States, we see that (a) they are roughly the same although China has ﬁve times the population. (b) China has a higher level of real GDP per person even though its population is ﬁve times the size of the United States. (c) China’s real GDP per person is approximately 74 percent of U.S. real GDP per person. (d) China’s real GDP per person is approximately 15 percent of U.S. real GDP per person. 6. Sources of economic growth include (a) physical capital growth . (b) high prices. (c) democracy. (d) only the job experience of workers. 7. Human capital is (a) the saving done by human beings. (b) people’s knowledge and skills . (c) a measure of the labor productivity of workers. (d) the investment people make in industries that make capital goods. 8. Institutions that allow for the creation of incentives for economic growth include (a) markets (b) property rights. (c) monetary exchange. (d) All of the above . 9. Which of the following does NOT describe a function of money? (a) a unit of account (b) a hedge against inﬂation (c) a medium of exchange (d) a store of value 10. Barter is (a) another type of money.
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This note was uploaded on 05/04/2011 for the course ECON 1101 taught by Professor Rappoport during the Fall '08 term at Temple.

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final-solution - Final Examination Economics 1101, Section...

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