Dr. Maria Cândido
Name of Student to your right:_______________________________________
Name of Student to your left: ________________________________________
Economics 3 First Midterm Examination Answer Key
Winter Quarter 2012
You have 80 minutes to finish your exam. Write your name and ID number on the upper left
corner of this page. Also write the names of the students to your left and to your right.
Confirm that your test has
pages. The last page can be used as scratch paper.
There are two parts to this exam – multiple-choice questions (Part I) and short-answer
questions (Part II). You do not need to justify your answers for the multiple-choice
questions. Show ALL your work for the short-answer questions.
Use a pen to write your answers. You give up your right to a regrade if you choose to use a
The table below indicates how points will be allocated on the exam. You can answer the
questions in any order you like. Use your time carefully and efficiently.
With you, you should only have a pen, and a non-graphing calculator.
You will NOT be allowed to leave the room during the exam. Turn off your cell phone and
your IPod, and good luck!
Dr. Maria Cândido
PART I: Multiple-Choice Questions
(3 points each, 30 points total)
You do NOT need to justify your answers for the multiple-choice questions. Please, fill your answers
here. Use CAPITAL LETTERS.
Which of the following would increase the investment component of U.S. GDP?
A laundry in Mexico purchases a new clothes-washing machine produced in the U.S.
A laundry in Seattle purchases a new clothes-washing machine produced in the U.S.
You purchase a new clothes washing machine produced in France.
You purchase a new clothes washing machine produced in the U.S.
GDP excludes important factors that affect people's well being, such as the value of:
goods produced domestically, but sold to foreigners.
services purchased by households.
government purchases of goods and services.
Capital income includes:
earnings of the self-employed.
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