SHEPERD ECON 123 - SAMPLE SECOND EXAM (12 pages)

Previewing pages 1, 2, 3, 4 of 12 page document View the full content.
View Full Document

SAMPLE SECOND EXAM



Previewing pages 1, 2, 3, 4 of actual document.

View the full content.
View Full Document
View Full Document

SAMPLE SECOND EXAM

82 views


Pages:
12
School:
Shepherd University
Course:
Econ 123 - Contemporary Economics
Unformatted text preview:

PART I PART II 1 2 X CR TOTAL GRADE ECON 123 V1 SAMPLE SECOND EXAM NAME Please read all instructions carefully Put your name on the scantron as well as on this sheet Good luck TOTAL POINTS 100 PART I MULTIPLE CHOICE Answer all multiple choice questions on the BLUE SIDE of the scantron Using a 2 pencil darken the circle by the letter which best answers each question 1 The three major macroeconomic problems are a b c d 2 Debt deficits and taxation Unemployment inflation and taxation Unemployment falling production and deficits Unemployment falling production and inflation Which of the following is NOT a direct consequence of unemployment a b c d Higher inflation Individual hardship Lost output and production All of the above are consequences of unemployment 3 Which of the following types of unemployment is voluntary where the person chooses to leave her job a b c d Cyclical unemployment Frictional unemployment Structural unemployment None of the above 4 Lee lost her job because her employer moved his operations to China Ramon resigned from his job to look for work closer to his family a b c d Lee s unemployment is cyclical and Ramon s is frictional Lee s unemployment is structural and Ramon s is cyclical Lee s unemployment is structural and Ramon s is frictional Lee s unemployment is frictional and Ramon s is structural 2 5 The labor force consists of all persons a b c d 6 An unemployment rate of six percent means that six percent of the a b c d 7 Labor force is voluntarily unemployed Labor force is involuntarily unemployed Labor force is out of work and actively seeking employment Population is out of work and actively seeking employment The natural rate of unemployment occurs when unemployment is a b c d 8 Who are working regardless of their ages Capable of working regardless of their ages 16 years of age and older who are working 16 years of age and older who are working or actively seeking work Zero A level that includes only the frictionally and structurally unemployed A level that includes only the structural and cyclically unemployed A level that includes only the frictionally unemployed An economy experiences inflation when a b c d Prices are high Prices are increasing The purchasing power of money is increasing All of the above 9 A person whose paycheck grows at 6 when the inflation rate is 4 would experience a b c d 10 A decrease in money nominal income and in real income An increase in money nominal income and in real income A decrease in money nominal income and an increase in real income An increase in money nominal income and a decrease in real income Which of the following is most likely to be hurt by inflation a b c d The average retired person living on past savings The average lender The average wage earner worker Both a and b 3 USE THE INFORMATION IN THE TABLE BELOW TO HELP YOU ANSWER QUESTIONS 11 12 and 13 11 PRICE OR VALUE OF YEAR MARKET BASKET PRICE INDEX 1 200 2 400 3 600 If year 1 is the base year the price index number for year 2 is a b c d 12 If year 1 is the base year the price index number for year 3 is a b c d 13 300 100 50 None of the above Rates of inflation can be calculated from a b c d 15 100 200 600 None of the above The rate of inflation between year 2 and year 3 is a b c d 14 100 200 400 None of the above The consumer price index The producer price index The GDP deflator All of the above The base year in a price index is always a b c d The first year in the index Given a value of 0 0 The year against which prices in other years are compared All of the above 4 16 Gross Domestic Product GDP measures the value of all a b c d 17 Money nominal GDP measures the value of production a b c d 18 Goods and services sold in one year Goods and services produced in one year Finished final goods and services sold in one year Finished final goods and services produced in one year Adjusted for inflation Relative to potential output Relative to the output of other nations In terms of prices at the time of production Real GDP measures the value of production a b c d Adjusted for inflation Relative to potential output Relative to the output of other nations In terms of prices at the time of production 19 Total or aggregate spending is the combined spending for new goods and services of all a b c d 20 Which of the following has no direct impact on consumption spending a b c d 21 Households Households and businesses Households businesses and government units Households businesses government units and foreign buyers An increase in the personal income tax An increase in the value of stocks A decrease in interest rates A change in exports Business investment would likely decrease following an increase in a b c d Interest rates Profit expectations Personal consumption expenditures All of the above 5 22 The recurring periods of increasing and decreasing production that the economy experiences are called a b c d Business cycles Phases of growth and decline Fluctuating cycles Periodic cycles USE THE DIAGRAM OF THE BUSINESS CYCLE BELOW TO HELP YOU ANSWER QUESTIONS 23 AND 24 Real GDP A maximum B D minimum C 1970 23 2010 Year In which phase of the business cycle is point A a b c d Peak Recovery Inflationary Pre contractionary 24 The unemployment rate would most likely be decreasing in the phase of the business cycle indicated by a b c d Point B Point C Point D The unemployment rate does not change over the business cycle 6 25 According to the aggregate demand aggregate supply model which of the following will NOT increase the level of real output in the LONG RUN a b c d 26 An increase in labor productivity An increase in the capital stock An increase in aggregate demand All of the above will increase the level of real output in the long run Which of the following panels illustrates positive long run economic growth INFL MRAS1 MRAS2 INFL MRAS2 MRAS1 y y PANEL A INFL SRAS1 PANEL B SRAS2 INFL SRAS 2 SRAS1 y PANEL C a b c d 27 y PANEL D Panel A Panel B Panel C Panel D Which of the following is NOT a function of money a b c d Produce goods and services Provide a method for storing wealth Provide a measure of value for every good service and resource Serve as a medium of exchange 7 28 A problem associated with barter is a Goods can be exchanged but services cannot b The goods and services individuals want to trade must coincide for exchange to occur c Inflation occurs whenever goods and services are …


View Full Document

Access the best Study Guides, Lecture Notes and Practice Exams

Loading Unlocking...
Login

Join to view SAMPLE SECOND EXAM and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view SAMPLE SECOND EXAM and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?