midterm_1_key

midterm_1_key - University of California, Davis Department...

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Page 1 of 9 University of California, Davis Department of Economics ECN 1B Midterm Examination 1 Spring Quarter 2009 B. Modjtahedi Question 1 Which of the following is a normative statement? A. The government should provide free healthcare service to every American. B. The inflation rate is predicted to be 5% in 2008. C. Lenders hate unanticipated inflation. D. It is not easy to reduce the unemployment rate. E. None of the above. Question 2 Which of the following is included in 2009 GDP? A. The value of the old 2001 Chevy you bought from me. B. The value of the used book you bought from bookstore in 2009. C. The government bought some new books for the students in public schools. D. The value of the time you spent fixing your car. E. None of the above. Question 3 Which of the following statements is true about the recessions experienced in the U.S. since 1970? A. The 2001 recession was the most severe among the three. B. The 1990-91 recession was not as severe, but it was characterized by a very high inflation rate. C. The 1974-75 recession was characterized by high unemployment rates but not much inflation. D. The 1980-82 recession was characterized by low unemployment but a large reduction in real GDP. E. None of the above. Question 4 The value of which of the following will NOT be included in the 2009 GDP? A. You bought stock of the DELL Corporation issued in 2009. B. I bought a DELL laptop built in 2009. C. Jim had a haircut yesterday. D. You had your car fixed yesterday. E. None of the above. Question 5 Robert, who never wanted to work outside his house for other people, decides to find a job to supplement his wife’s income. As a result A. Civilian population increases. B. Labor force increases. C. Labor force decreases. D. Cyclical unemployment increases. E. None of the above.
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Page 2 of 9 Questions 6 and 7 are based on the following table. Total Jobs (Filled and Unfilled) 85,000 Employed 80,000 Labor Force 100,000 Question 6 The natural rate of unemployment is A. 20% B. 15% C. 5% D. 4% E. None of the above. Question 7 The cyclical rate of unemployment is A. 20% B. 15% C. 5% D. 4% E. None of the above. Question 8
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This note was uploaded on 11/11/2011 for the course ECN 1B taught by Professor Michalowski during the Spring '11 term at UC Davis.

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midterm_1_key - University of California, Davis Department...

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