old exam questions for midterm 2

old exam questions for midterm 2 - ECON 110 E Sankaran EXAM...

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ECON 110 E Sankaran EXAM # 3 Instructions: Answer questions one to forty (1-40) on the provided scantron sheet by filling in the appropriate bubbles clearly and completely using a number 2 pencil. Each question is worth two points 1. If the CPI increases from one year to the next, the economy has experienced a. growth. b. deflation. c. stagflation. d. inflation. 4. When the overall level of prices in the economy is increasing, we say that the economy is experiencing a. economic growth. b. unemployment. c. inflation. d. deflation. 5. Productivity is a measure of a. the amount of goods and services produced from each worker in a given year. b. the amount of goods and services produced from each hour of a worker's time. c. the amount of goods and services produced per person in the country. d. the amount of goods and services produced by a country relative to another country. 6. Explaining the large variation in living standards around the world is very easy. According to the text, the explanation can be summarized in a single word-- a. competition. b. politics. c. gross domestic product. d. productivity. 7. Physical capital is a. the knowledge and skills that workers acquire while using machinery and tools. b. the stock of equipment and structures that are used to produce goods and services. c. education, training, and experience. d. land, rivers, and mineral deposits. 8. Government policies can promote economic growth in many ways. Which of the following was not mentioned in class? a. fostering education b. maintaining property rights c. maintaining political stability d. allowing unrestricted trade e. All of the above were mentioned 10. When setting up a business, you might need to purchase a building, factory, machines, computer, filing cabinets, and furniture. This type of purchase would be called __________ by an economist. a. capital investment b. business consumption expenditures
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c. investment in human capital d. None of the above is correct. 12. When a country saves a large portion of its GDP, a. the standard of living of the population will fall. b. less investment will take place. c. more resources are available for investment in capital. d. the country's productivity and standard of living will rise. e. c and d 31. The "basket" on which the CPI is based is composed of a. Raw materials purchased by firms. b. Total current production c. Products purchased by the typical consumer d. Consumer production e. None of the above 38. If you buy a pizza, which component of GDP would this transaction effect? a. Consumption
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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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old exam questions for midterm 2 - ECON 110 E Sankaran EXAM...

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