Midterm Part I

Midterm Part I - ECN 111 Macroeconomic Principles Midterm...

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ECN 111 Midterm Dr. Happel Macroeconomic Principles Version A Spring, 2006 Select only one answer per question. Remember that if any part of an answer is false, then the entire answer is false. 1. Which of the following statements about economics is false ? a) Economics (according to Dr. Happel) is the study of scarcity and scarcity implies conflict. b) Economics is the study of choices. c) Economists believe that people do respond to incentives. d) Macroeconomics is concerned with the entire economy and aggregate output. e) Economists can eliminate discrimination through price adjustments. 2. According to class discussions about the five U.S. generations since 1910, which of the following is false ? a) The Bob Hopers (1910-1927) number about 52 million, and money was a major concern in their lives. b) The Silent Generation or SEDs (1928-1945) number about 47 million, and a major concern of theirs was getting a decent house. c) The Baby Boomers (1946-1964) number about 76 million, and spending (buying goods) is very important to them. d) Generation X (1965-1982) number about 59 million, and they were the first of the latch- key kids whose mothers worked. e) The Rainbowers (1983-2000) number about 60 million, and they are very independent compared to previous generations. 3. Which of the following statements is false about the U.S. economy at the moment a) The economy is currently doing well. b) The unemployment rate is below 5 percent. c) The inflation rate, as measured by CPI, increased each year from 2002 to 2005. d) Real GDP growth was very strong (over 3.5%) in 2002, and then it decreased significantly in 2003 and 2004. e) The new chairman of the Fed is Ben Bernanke. 4. Which of the following statements about Isaac Newton is true ? a) After graduating from Cambridge, he traveled extensively during the next two years while he developed calculus theory and formulated his laws of motion. b) Newton became famous right after 1666 because his works were published immediately after he came up with his ideas. c) After Newton became head of the mint in England in the late 1690’s, he put England on a silver standard in 1717. d) Newton believed God did not create very much order in the universe. e) None of the above is true.
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5. Which of the following ideas is false regarding Adam Smith’s life? a) Smith got his Ph.D. in political economy. b) In the Theory of Moral Sentiments in 1759, he argued that clever, talented people owe a huge debt to society. c) He met great intellectuals of his day, including Jefferson and Franklin. d) As customs commissioner of Edinburgh at the end of his life, he did not vigorously reduce tariffs and promote free trade. e) He burned a lengthy manuscript he was writing just before he died. 6.
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Midterm Part I - ECN 111 Macroeconomic Principles Midterm...

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