Midterm 2 Review

Midterm 2 Review - Name: _ Economics 222, Fall 2008,...

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Name: ________________________________ Economics 222, Fall 2008, Midterm Exam #2 Circle the best response. There is exactly one correct answer per question. There are 34 questions total. 1. The inputs into production of goods and services that are provided by nature, such as land, rivers, and mineral deposits are called a. physical capital. b. natural resources. c. human capital. d. technological knowledge. 2. The key determinant of a person's standard of living in a country is a. the amount of goods and services produced from each hour of a worker's time. b. the total amount of goods and services produced within the country. c. the total amount of its physical capital. d. its growth rate of nominal GDP. 3. If your firm has constant returns to scale, then if you doubled all your inputs your firm's output would a. not change. b. increase, but by less than double. c. double. d. more than double. 4. Which of the following is correct? a. If a relatively poor country had grown at 3.5 percent per year for the last 100 years, it would be a relatively rich country today. b. International data on the history of the growth of real GDP per person shows that the rich countries get richer and the poor countries get poorer. c. In the United States, average income today is about two times as high as average income a century ago. d. All of the above are correct.
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5. Last year real GDP in Oceania was 561.0 billion and the population was 2.2 million. The year before real GDP was 500.0 billion and the population was 2.0 million. What was the approximate growth rate of real GDP per person? a. 12 percent b. 10 percent c. 4 percent d. 2 percent 6. Megasoft wants to finance the purchase of new equipment for developing security software called Doors , but they have limited internal funds. Megasoft will likely a. demand loanable funds by buying bonds. b. demand loanable funds by selling bonds. c. supply loanable funds by buying bonds. d. supply loanable funds by selling bonds. 7. According to the definitions of private and public saving, if Y, C, and G remained the same, an increase in taxes would a. raise both private and public saving. b. raise private saving and lower public saving. c. lower private saving and raise public saving. d. lower private and public saving. 8. Tom buys a bond issued by Budweiser, which uses the funds to buy new machinery for one of its breweries. a. Tom and Budweiser are both investing.
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This note was uploaded on 06/14/2011 for the course ECON 222 taught by Professor Shimpalee during the Spring '10 term at South Carolina.

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Midterm 2 Review - Name: _ Economics 222, Fall 2008,...

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