DOC PREVIEW
ISU ECON 102 - exam 1 review

This preview shows page 1 out of 4 pages.

Save
View full document
View full document
Premium Document
Do you want full access? Go Premium and unlock all 4 pages.
Access to all documents
Download any document
Ad free experience
Premium Document
Do you want full access? Go Premium and unlock all 4 pages.
Access to all documents
Download any document
Ad free experience

Unformatted text preview:

1. GDP equals ____?A. Purchases of goods and services by a countryB. Total dollar value of all final goods and services produced in a country within a given period of timeC. Total goods and services sold by a country in a given period of timeD. None of the above2. Goods and services that we buy from people in other countries are called our ____?A. Terms of tradeB. Balance of paymentsC. ImportsD. Exports3. Use the Table to answer the following questionCategory Number (Millions)Discouraged workers 15Unemployed workers 40Employed workers 100Population (16 years and over) 225From the table, the size of the labor force is ____?A. 100 MillionB. 155 MillionC. 210 MillionD. 140 Million4. Aggregate expenditures include all of the following EXPECT_____?A. Purchases of guns by the governmentB. Purchases of intermediate goodsC. Purchases of a piece of capital equipmentD. Consumption of food5. The Labor Force participation rate measures _____?A. Amount of employed and unemployedB. Percent of the adult population that is in the labor forceC. Ratio of white-collar workers to blue-collar workersD. All of the above6. Which variable is given, or in words, which variable are we NOT trying to find?A. ExogenousB. EndogenousC. Equilibrium D. None of these7. This measures the percent change in the average level of prices from the year before?A. CPIB. Inflation rateC. Expenditure equationD. All of these do8. What types of goods fall under Consumer consumption?A. NondurableB. DurableC. Both A & BD. Neither A nor B9. What would be an example of a Business Fixed Investment?A. Buying a new machine to put tires on cars in an assembly line factoryB. Buying a desk for a company’s presidentC. Installing a new computer to a factory’s mainframeD. All of the Above10. Who is John Maynard Keynes?A. British economist who believed the economy’s total income was determined mostly by spending of households, businesses, and government.B. American economist who found that an economy’s GDP is directly related to the amount of employed and unemployed workersC. French economist who calculated that an increase in prices would cause an increase in inflationD. None of these 11. Describe this graph in your own words. (Include GDP, historical info, etc.)*Y-axis is GDP per person1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 20000200400600800100012001400160012. Describe this graph in your own words. (Unemployed, historical data, avg. unemployed)*The Y axis is in % of Unemployed in Labor Force1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 20000123456789 13. Describe this graph in your own words. (Labor Force, historical info, causes, etc.)*Y-axis is in % 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 20050102030405060708090100MenWomen14. Use the following information:Country A produces milk and cookies. In Year 1, Country A produced 6 gallons of milk and 12 cookies; however, in Year 2, Country A produced 8 gallons of milk and 20 cookies. Use Year 1 as the base year. Price of cookies in year 1 was $0.50 and milk was $2.00. Year 2 milk cost $1 and cookies $.75.A) Calculate the GDPB) Calculate Nominal GDP C) Calculate Real GDP.D) Calculate GDP Deflator.E) Compute a CPI for Country A. How does the CPI change from Year 1 to Year 2?15. Use the following information:The total number of workers demanded by the a company are determined by: D(W,r)= 100-W-100r where “W” is wage paid to employed workers and “r”is the rate of interest at which the company can borrow to finance their working capital.The supply of workers is determined by: S(W,c)= 10+W-10c where “c” is the cost of obtaining a training a new worker. In this model, “r” and “c” are exogenous variable. We are given that r=0.05 and c=1.A) What is the equilibrium wage and what is the equilibrium number of workers employed in the company.B) The bank decides to incrase interest rates from 0.05 to 0.1. What will happen to the equilibrium wage and employment in the company? What happens when the interest rate decreases?C) How does the equilibrium wage and total number of workers employed change with achange in “c.”D) Specific values of “r” and “c” are not given, solve for the wage and number of workers as a function of “r” and


View Full Document

ISU ECON 102 - exam 1 review

Download exam 1 review
Our administrator received your request to download this document. We will send you the file to your email shortly.
Loading Unlocking...
Login

Join to view exam 1 review 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 exam 1 review 2 2 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?