Exam 2 - Exam 2 ECON 2200-06 TR 330pm Spring 2011 Multiple...

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Exam 2 ECON 2200-06 TR 330pm Spring 2011 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Which of the following is a correct way to measure productivity? a. Divide the number of hours worked by the quantity of output. b. Divide the quantity of output by the number of hours worked. c. Divide the quantity of output by the quantity of physical capital. d. Divide the change in the quantity of output by the change in the number of hours worked. ____ 2. Human capital is a. the same thing as technological knowledge. b. the same thing as labor. c. the tools and equipment operated by humans. d. knowledge and skills that workers have acquired. ____ 3. If a country's saving rate increases, then in the long run a. productivity is higher but real GDP per person is not higher. b. real GDP per person is higher but productivity is not higher. c. productivity and real GDP per person are both higher. d. neither productivity nor real GDP per person is higher. ____ 4. The catch-up effect refers to the idea that a. saving will always catch-up with investment spending. b. it is easier for a country to grow fast and so catch-up if it starts out relatively poor. c. population eventually catches-up with increased output. d. if investment spending is low, increased saving will help investment to "catch-up." ____ 5. The president of Improvia, a developing country, proposes that his country needs to help domestic firms by imposing trade restrictions. a. These are outward-oriented policies and most economists believe they would have beneficial effects on growth in Improvia. b. These are outward-oriented policies and most economists believe they would have adverse effects on growth in Improvia. c. These are inward-oriented policies and most economists believe they would have beneficial effects on growth in Improvia. d. These are inward-oriented policies and most economists believe they would have adverse effects on growth in Improvia. ____ 6. The fact that borrowers sometimes default on their loans by declaring bankruptcy is directly related to the characteristic of a bond called a. credit risk. b. interest risk. c. term risk. d. private risk. ____ 7. A bond is a a. financial intermediary. b. certificate of indebtedness. c. certificate of partial ownership in an enterprise. d. None of the above is correct. 1
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____ 8. In 2008, XYZ Corporation had total earnings of $200 million and 50 million shares of the corporation’s stock were outstanding. If the price-earnings ratio for XYZ is 20, then what is the price of a share of its stock? a. $5 b. $10 c. $80 d. $500 ____ 9. Fortunade Corporation stock has a price of $100 per share, a dividend of $1.60 per share, and retained earnings of $2.00 per share. The dividend yield on this stock is a. 2.8 percent.
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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 2 - Exam 2 ECON 2200-06 TR 330pm Spring 2011 Multiple...

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