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Unformatted text preview: Second Midterm Examination Economics 1101, Section 10 November 10, 2009 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. In the short run, increasing real GDP requires (a) a rise in the price level. (b) increasing the quantity of labor. (c) increasing the quantity of capital. (d) increasing leisure hours. 2. When a nation devotes more time to leisure activities, (a) real GDP decreases. (b) real GDP increases. (c) opportunity costs decrease. (d) labor increases. 3. The production function shows how ......... varies with ......... . (a) leisure time; labor (b) labor; leisure time (c) real GDP; factors of production (d) labor; factors of production 4. The labor market determines all of the following EXCEPT the (a) equilibrium quantity of labor hours. (b) real wage rate. (c) price level. (d) quantity of labor hours demanded. 1 5. The quantity of goods and services that an hour of labor earns is defined as the (a) marginal product of labor. (b) money wage rate. (c) real wage rate. (d) supply of labor. 6. Full employment corresponds to (a) equilibrium in the labor market, with real GDP being equal to potential GDP. (b) labor demand being greater than labor supply and real GDP being equal to potential GDP. (c) being at the point where the marginal product of labor equals zero. (d) equilibrium in the labor market, and real GDP exceeding potential GDP. 7. A minimum wage is set by ......... and can lead to a ......... of labor. (a) the government; surplus (b) unions; shortage (c) firms; surplus (d) unions; surplus 8. The labor force is the sum of the (a) working-age population and the number of unemployed people. (b) number of employed people and the working-age population. (c) number of employed people and the number of unemployed people. (d) total population and the number of unemployed people. 9. Unemployment as measured includes the total number of people who (a) have jobs or are currently looking for jobs. (b) are available and looking for work but unable to find employment. (c) would like to have a job but have stopped seeking work. (d) would like to have a full-time job but are working part-time. 10. Which of the following people is NOT considered unemployed in the Current Population Survey?...
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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.
- Fall '08