Econ102_Exam2_V3_Winter08_

Econ102_Exam2_V3_Winter08_ - Winter Semester 2008 Economics...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Winter Semester 2008 Form 3 Economics 102 – Principles of Economics II Department of Economics – University of Michigan Examination No. 2 – Section 100 Circle the correct answer for each of the following questions . 1. Your form number is A) 1 B) 2 C) 3 D) 4 Figure 1 2. In Figure 1, the displayed shift in labor supply could be caused by A) an increase in the firm’s capital stock. B) a decline in the personal income tax rate. C) an increase in the corporate tax rate. D) an increase in the personal income tax rate. 3. Which of the following will cause an increase in the money supply? A) The decriminalization of marijuana B) An increase in the required reserve ratio C) Higher interest rates on credit cards D) Imposition of a tax on credit card purchases 4. Which of the following is (are) unaffected by the discouraged worker phenomenon? A) Only the unemployment rate B) Both the unemployment rate and the employment-to-population ratio C) Only the employment-to-population ratio D) Both the unemployment rate and the labor force participation rate (OVER) Real Wage Rate Labor Labor Demand Labor Supply 4
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Winter Semester 2008 Form 3 5. A firm choosing its labor force maximizes profits when A) after-tax marginal revenue is less than the nominal wage rate. B) after-tax marginal revenue equals the nominal wage rate. C) marginal revenue is less than the after-tax nominal wage rate. D) The marginal product of labor equals the nominal wage rate. 6. Constant returns to scale means that A) reducing all inputs in production by half reduces output produced by half. B) increasing the level of an input, ceteris paribus, increases output produced at an increasing rate. C) doubling one input in production doubles output produced. D) increasing the level of an input, ceteris paribus, increases output produced at a decreasing rate. 7. According to the Malthusian theory of economic growth, A) technical progress will cause the population to grow in the long run. B) output will grow fast enough to accommodate population growth in the long-run. C) the long-run growth rate of output is zero. D) the capital stock will grow at the same rate as labor in the long run. 8. If workers become more productive over time because they better understand their jobs, this is an example of A) an invention. B) diffusion. C) learning-by-doing. D) innovation. 9. You observe that the unemployment rate has increased. Which of the following possibilities could explain this empirical observation? A)
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/04/2008 for the course ECON 102 taught by Professor Rossana during the Winter '08 term at University of Michigan.

Page1 / 6

Econ102_Exam2_V3_Winter08_ - Winter Semester 2008 Economics...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online