Final Part I

Final Part I - ECN 111 SLN 76868 Macroeconomic Principles...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ECN 111 SLN 76868 FINAL EXAM Professor Happel Macroeconomic Principles Spring 2006 9:15-10:30 MW 1. According to class discussions, which of the following statements is true ? a. The What to Produce, How Much to Produce, and How to Produce questions are referred to collectively as the Distribution Question. b. The Political Process refers to government command solving economic problems. c. Some countries in the world today rely solely on the Market Process to solve economic problems. d. Pure Capitalism means that all property is publicly owned and the market process solves all economic problems. e. Pure Communism as an economic system means that the social process solves all economic problems and all property is privately owned. 2. In a circular flow diagram for a complex economy, which of the following is true ? a. There are only financial flows from firms to households. b. Firms represent the supply side of labor markets. c. Households represent the demand side of product (goods) markets. d. Government purchases and imports are injections. e. None of the above is true. 3. According to our discussions about inflation, unemployment, and growth, which of the following is true ? a. Inflation is an increase in an overall (absolute) price index (like the CPI), and it necessarily means that all prices are going up at the same time. b. Unanticipated inflation hurts debtors. c. Cost-push inflation is the only type of inflation according to Milton Friedman. d. The labor force does not include all able-bodied adults. e. None of the above is true. 4. In terms of the aggregate demand-aggregate supply (AD/AS) graph, which of the following is true ? a. AD and AS are stock variables and show what households and firms actually do at different levels of the price index. b. AD is downward sloping because of the real balance effect. c. The AD curve does not hold expectations constant. d. The AS curve does not hold expectations constant. e. None of the above is true.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
5. According to class discussions of money which of the following is false ? a. A primary function of money is to serve as a medium of exchange. b. An effective medium exchange has properties that include being divisible, durable, and hard to counterfeit. c. The first universal money were gold and silver nuggets. d. The first gold and silver coins were token coins. e. The first goldsmiths’ receipts were fully-backed currency. 6. For the U.S. from 1630 to 1811, which of the following is false ? a. “Country Pay” was commodity money, and the money supply growth was unstable under Country Pay. b. England did not let the colonies issue their own coins for very long. c. To finance the Revolutionary War, the Continental Congress issued paper money called Continentals, and this led to inflation. d. Alexander Hamilton, as the first secretary of Treasury, led the fight in favor of
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

Final Part I - ECN 111 SLN 76868 Macroeconomic Principles...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online