1102F Mid-term exam 2011 version I with answers

1102F Mid-term exam 2011 version I with answers - 1...

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1 1 INTRODUCTION TO MACROECONOMICS ECO 1102 F COURSE INSTRUCTOR : MARC LAVOIE MID-TERM EXAM, FEBRUARY 17TH 2010, SITE B0138 TIME : 80 MINUTES ANSWERS TO THE MID-TERM EXAM
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2 Part A: Multiple-choice questions (30x2= 60%). Reply on the scanning sheet, not on the questionnaire. Choose the best possible answer. 1. A theory can best be defined as a. an untested assertion of untested fact. b. a collection of assumptions that simplify the real world. c. an opinion of a reliable person who studies a subject or discipline. d. a deliberate simplification of factual relationships that attempts to explain how those relationships work. e. the body of knowledge that has been scientifically verified by the scientific community. ANS: D PTS: 1 DIF: Difficult NAT: Analytic LOC: The Study of economics, and definitions in economics TOP: Inside the Economist’s Tool Kit 2. During one winter quarter at Frozen U., snow falls every Friday night. Students assume that, on their campus, Fridays cause snow. This hypothesis a. should more properly be considered a theory. b. assumes that correlation implies causation. c. assumes that causation implies correlation. d. reflects the fallacy of composition. ANS: B PTS: 1 DIF: Moderate NAT: Analytic LOC: The Study of economics, and definitions in economics TOP: Inside the Economist’s Tool Kit 3. Which of the following is one source of disagreement between economists? a. Some facts about the economy are unknown. b. Economists differ in their political persuasions. c. Economic theory may not always give an unambiguous answer to a question. d. Economists may agree on stylized facts, but not on causation. e. All of the above are correct. ANS: E PTS: 1 DIF: Moderate NAT: Analytic LOC: The Study of economics, and definitions in economics TOP: Inside the Economist’s Tool Kit 4. Friedrich von Hayek a. is an Austrian economist opposed to free markets. b. is a philosopher who strongly supported Keynesian ideas in the 1940s. c. claimed that the Keynesian welfare state would lead to inflation. d. is a Nobel prize winner in economics and the inspiration for socialist policies. e. (a) and (d) are true. ANS: C PTS: 1 DIF: Moderate NAT: Analytic 5. The global financial crisis of 2007-2009 has led to a. a revival of Keynesian economic policies through government-run stimulus programs. b. more confidence in market mechanisms. c. more profits for the banks and the financial sector overall. d. a strengthened market-clearing view. . e. None of the above.
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3 ANS: A PTS: 1 DIF: Moderate NAT: Analytic 6 . Most Canadian workers a. are employed in the secondary goods-producing sector. b . are employed by government. c. are employed in the tertiary service-producing sector. d
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1102F Mid-term exam 2011 version I with answers - 1...

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