Econ 102 Sample MT1-B

Econ 102 Sample MT1-B - SAMPLE FIRST MIDTERM NOTE: Some...

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SAMPLE FIRST MIDTERM NOTE: Some exam questions may vary from those herein and the number of questions of various types may change. First Mid-term Examination Larry Smith THIS EXAM IS FOR LARRY SMITH’S STUDENTS ONLY Aids: Calculator, a 8 1/2” x 11” HANDWRITTEN reference sheet and a General Use Dictionary MULTIPLE CHOICE – 39 QUESTIONS ON 10 PAGES TIME ALLOWED – 90 MINUTES PLEASE READ THESE INSTRUCTIONS CAREFULLY IT IS YOUR RESPONSIBILITY TO PRODUCE A MACHINE READABLE COMPUTER CARD 1. On Your Computer Card Enter 004 as Section Number 2. Fill in answer card with a PENCIL 3. Fill in all other information 4. Check your I.D . entry, again 5. Make sure your computer card choice refers to the correct question 6. If you make a correction, erase the previous answer completely 7. Do not make any stray marks on the card 8. Hand in computer card 9. Take question paper with you 1
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1. The most recent recession: A) is probably over B) ended last quarter C) is over but significant after effects remain D) is over and no significant after effects remain E) none of the above 2. In light of its long term historic performance , the underlying dynamic of the Canadian economy meant that the recent recession’s effect on the economy was: A) exaggerated B) almost non-existent C) devastating compared to other countries D) moderated E) none of the above 3. Since it is well understood that rapidly increasing the money supply can cause inflation, the recent large increases in the money supply of many major countries occurred because these governments: A) were driven to do so by ignorant public opinions B) reject the casual link between the money supply and inflation C) had so much money on hand it did not matter D) felt there was an immediate danger greater than the risk of inflation E) none of the above 4. Compared to the United States and China, the response of the Canadian government to the recent recession was: A) ineffective B) more aggressive and that was inappropriate C) more aggressive and that was appropriate D) less aggressive and that was appropriate E) less aggressive and that was inappropriate 5. What economic policy is China actively pursuing? A) slowing its economy because of pressure from the United States B) slowing its economy against the advice of most of its economists C) slowing its economy because it needs to rebuild its national savings since it has lent so much money to Europe and the United States D) beginning to reverse its acceptance of a market economy E) none of the above 2
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6. The U.S. housing collapse was caused because: A) housing prices rose so high housing became unaffordable B) the U.S. tried to restrict home ownership C) a large number of persons were helped to buy housing they could not actually afford D) it had long been difficult to get investors to buy securities backed by mortgages E) none of the above 7. Large well known and “sophisticated” financial institutions brought massive amounts of securities (bonds) backed by mortgages based on loans to persons of limited income and
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This note was uploaded on 03/12/2012 for the course ECON 102 taught by Professor ? during the Winter '08 term at Waterloo.

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Econ 102 Sample MT1-B - SAMPLE FIRST MIDTERM NOTE: Some...

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