Exam 1 - Exam 1 EC2200 Principles of Macroeconomics-Section...

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Exam 1 EC2200 Principles of Macroeconomics-Section 6 TR 3.30 PM Spring 2011 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. The marginal benefit John gets from eating a fourth cheeseburger at a picnic is a. the total benefit John gets from eating four cheeseburgers minus the total benefit John gets from eating three cheeseburgers. b. the same as the total benefit of eating four cheeseburgers. c. less than the marginal cost of eating the fourth cheeseburger since he chose to eat the fourth cheeseburger. d. the total benefit John gets from eating five cheeseburgers minus the total benefit John gets from eating four cheeseburgers. ____ 2. The primary determinant of a country's standard of living is a. the country’s ability to prevail over foreign competition. b. the country’s ability to produce goods and services. c. the total supply of money in the economy. d. the average age of the country's labor force. ____ 3. In the short run, which of the following rates of growth in the money supply is likely to lead to the lowest level of unemployment in the economy? a. 3 percent per year b. 5 percent per year c. 7 percent per year d. 9 percent per year ____ 4. In the circular-flow diagram, a. taxes flow from households to firms, and transfer payments flow from firms to households. b. income payments flow from firms to households, and sales revenue flows from households to firms. c. resources flow from firms to households, and goods and services flow from households to firms. d. inputs and outputs flow in the same direction as the flow of dollars, from firms to households. Figure 2-6 1
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A B C D F G 2 4 6 8 10 12 14 16 bathtubs 5 10 15 20 25 30 35 40 45 barrels ____ 5. Refer to Figure 2-6 . This economy has the ability to produce at which point(s)? a. A, B b. A, B, D c. A, B, C, F, G d. C, F, G Figure 2-8 Panel (a) Panel (b) J K L M N cups of coffee 1 2 3 4 5 6 donuts 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7 cups of coffee 1 2 3 4 5 6 donuts 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7 ____ 6. Refer to Figure 2-8, Panel (a). Production at point K is a. possible and efficient. b. possible but inefficient. c. impossible but efficient. d. impossible and inefficient. 2
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____ 7. “Prices rise when the quantity of money rises rapidly” is an example of a a. negative economic statement. b. positive economic statement. c. normative economic statement. d. statement that contradicts one of the basic principles of economics. ____ 8. Economists sometimes give conflicting advice because a. graduate students in economics are encouraged to argue with each other. b. economists have different values and scientific judgment. c. economists acting as scientists do not like to agree with economists acting as policy advisers. d.
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This note was uploaded on 01/20/2012 for the course ECON 2200 taught by Professor Muratdoral during the Fall '09 term at Kennesaw.

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Exam 1 - Exam 1 EC2200 Principles of Macroeconomics-Section...

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