xm1a-w03 - Econ 102 Exam I ANSWER KEY AT THE END ECON...

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1 Econ 102 ANSWER KEY AT THE END Lecture 100 Exam I Form 1 ECON 102/100 February 18, 2003 Section Day Time Location GSI 101 F 10-11:30 1060 EH Irina Grafova 102 TH 11:30-1 B239 EH Ivan Kandilov 104 TH 1-2:30 351 DENN Jon Millar 105 TH 2:30-4 173 LORCH Jan Sokolowsky 106 TH 4-5:30 142 LORCH Jan Sokolowsky 107 F 2:30-4 142 LORCH Jon Millar 109 F 11:30-1 B239 EH Irina Grafova · Do NOT open this exam booklet until instructed to do so! · Please take a moment to complete the identification information on the scantron. Indicate your NAME, discussion SECTION number, FORM number, and UM ID number. THIS IS WORTH TWO POINTS ON THE EXAM! · The exam has 100 points and is designed to take about 60 minutes to complete. However, you’ll have approximately 80 minutes. Check that you have all 10 pages of the exam. · Read the questions and these instructions carefully! · Use the space provided in this booklet and the back of the pages to work out the answers to the multiple choice problems. Use the space provided on the actual page for the short answer questions. · You can use only NON-graphing calculators. · For multiple choice questions, you get 3 points for a correct answer, 0 point for a blank, and 0 points for a wrong answer. There are NO penalties for guessing. · Sign the honor code below! Honor Code : I did not use any unauthorized aid on this exam. Name : (PRINT) _______________________________ UM ID # : _______________________________ Signature : _______________________________
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2 Multiple Choice: (26 questions, 3 pts each = 78 pts) Pick the best answer among the given choices. 1. Suppose that households expect the money supply to increase from 110 to 121 over the coming year, and that real output (Y) is expected to grow from $2000 to $2060. Suppose also that, if households put money into savings deposits, they can earn a 12 percent nominal interest rate. According to the quantity theory of money (with constant velocity) and the Fisher equation, households should expect a real rate of return on their savings deposits of _____ percent. a) 2 b) 5 c) 7 d) 12 e) The answer can’t be determined from the information given. 2. The University of Michigan, a government-owned school, is currently building a new hospital. This will be classified in US GDP as ________, because ____________. a) investment; it increases the capital stock b) investment; it is a new building c) government purchases; the construction constitutes government activity d) net exports; most construction workers are foreigners e) consumption; people will benefit from hospital services in the future 3. Use the data above to select from below the correct statement about the consumer price index based on just the two goods, pizzas and burgers, using the quantities indicated and with a base year of 2000. a) From 2000 to 2002, pizzas rose in price by a larger percentage than burgers.
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This note was uploaded on 02/06/2012 for the course ECON 102 taught by Professor Singerman during the Spring '08 term at Iowa State.

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xm1a-w03 - Econ 102 Exam I ANSWER KEY AT THE END ECON...

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