Econ_199_Win_06_Exam__1 - Introduction to Macroeconomics...

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Introduction to Macroeconomics Allen R. Sanderson Economics 19900 Winter 2006 FIRST HOUR EXAMINATION Name (Please Print): ______________________________________ [40 Points Possible] Part I. Multiple Choice. Circle letter corresponding to your answer. One point each; 20 points total. 1. “A recession is a period of significant decline in total output, income, employment, and trade, usually lasting from six months to a year, and marked by widespread contractions in many sectors of the economy.” Whose working definition is this? a. National Bureau of Economic Research b. Bureau of Labor Statistics c. Commerce Department d. Census Bureau e. Council of Economic Advisers 2. Economic growth is best pictured as (or by): a. changes in the employment or unemployment rate. b. an increase in nominal GDP. c. various measures of economic welfare – health, environmental quality, leisure time & equity. d. an increase in potential GDP. e. increases or decreases in the business cycle. 3. In terms of our economic indicators, Wheelan seems the least concerned about: a. sharp aging of the U.S. population. b. poverty and income inequality. c. the growing size of the federal government. d. the national savings rate for the U.S. e. budget deficits. 4. For December 2005, most of those unemployed were (or had been) out of work for: a. < 5 weeks. b. 5-14 weeks. c. 15-26 weeks. d. 27-52 weeks. e. > 1 year. 5. The concept of increasing opportunity costs is most easily shown or reflected by: a. points that lie outside (or beyond) the production possibilities frontier. b. the (decreasing) marginal benefit curve. c. comparative advantage and the gains from exchange – and losses from not trading. d. the bowed-out shape of the PPF. e. the traditional market demand curve. 6. Goolsbee and Krugman argue, for slightly different reasons, that the U.S. unemployment rate in recent years is biased because: a. people who should otherwise be in the labor force have dropped out, thus reducing the unemployment rate as we normally or traditionally have measured it. b. increases in the possibilities of getting more generous unemployment benefits has caused more people to enter the labor force, thus increasing the measured rate. c.
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Econ_199_Win_06_Exam__1 - Introduction to Macroeconomics...

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