Prelim 1 makeup revised[1] again

Prelim 1 makeup revised[1] again - Name Section Number...

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Name: First Prelim Makeup ECON 1120 – Professor Steven Kyle Section Number: October 26, 2009 PART I : Multiple Choice, 10 points (each question is worth ½ point). 1. When your aunt attended Cornell in 1980, she paid $250 for rent. Coincidentally, you now live in the same apartment in which she lived, and pay $600 for rent. Suppose that the CPI in 1980 was 125, and in 2008 is 250. a) In real terms, you're paying more than your aunt b) In real terms, you're paying less than your aunt c) In real terms, you're paying the same amount d) It cannot be determined from the information given Answer: A 2. William lost his job four months ago and because of the poor economy has not bothered looking for another job. Frank quit his job six weeks ago and went back to school full time. Elizabeth lost her full-time job as a bank teller last month. Since then, Elizabeth has been working one day a week through a temp agency. Which are considered unemployed according to the Bureau of Labor Statistics? a) William b) Frank c) Elizabeth d) Frank and Elizabeth e) None of the above f) All of the above Answer: E 3. Which of the following lowers an economy's natural rate of unemployment? a) An increase in the number of weeks a worker can collect unemployment insurance b) More efficient job search through use of the Internet c) An increase in the minimum wage d) The economy entering a recession e ) None of the above f) All of the above Answer: B 4. Which of the following statements about gross domestic product (GDP) is correct? a) GDP measures the market value of final goods and services produced within a country. b) GDP measures the market value of goods and services produced by U.S. owned companies. c) GDP measures physical quantity of goods produced in the United States. Because there is no common unit for measuring services, they are excluded
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Name: First Prelim Makeup ECON 1120 – Professor Steven Kyle Section Number: October 26, 2009 from GDP. d) GDP measures the market value of both intermediate and final goods and services produced within a country. e) None of the above Answer: A 5. If discouraged workers quit looking for jobs after the only employer in their town shuts the factory and moves to another country then: a) This is an example of structural unemployment b) This will not affect the unemployment rate after a couple of months c) This situation can’t be easily improved through monetary policy d) All of the above e) None of the above Answer: D 6. If aggregate output is greater than planned aggregate expenditure, then which of the following adjustments to equilibrium will occur: a) There will be an unplanned inventory decrease and firms will reduce production b) There will be an unplanned inventory increase and firms will reduce production c) There will be an unplanned inventory increase and firms will increase production d) There will be an unplanned inventory decrease and firms will increase production e) None of the above Answer: B 7. In a closed economy with government. Which of the following will occur when the
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Prelim 1 makeup revised[1] again - Name Section Number...

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