ECON 1110 Lecture Notes - Parsec

18 views29 pages

steph

27 Jun 2018

School

University of Windsor

Department

Economics

Course

ECON 1110

Professor

Michael Batu

For unlimited access to Class Notes, a Class+ subscription is required.

Exam

Name___________________________________

1) Macroeconomicsismainlyconcernedwiththestudyof

A) largeeconomicunitssuchasGeneralMotorsorMolsonBreweries

B) individualhouseholdsandhowtheydealwithproblemslikeinflationandunemployment.

C) governmentsandtheirinterventioninindividualmarkets.

D) fluctuationsandtrendsinaggregateddata.

E) fluctuationsandtrendsindisaggregateddata.

2) Anationsrealnationalincomeinagivenyearmeasuresthe

A) opportunitycostoftheeconomysnationaloutput.

B) marketvalueofnationaloutputproducedbytheeconomy.

C) valueofoutputproducedbytheeconomy,measuredinconstantdollars.

D) levelofnationalincomethatissubjecttotaxationbythefederalgovernment.

E) dollarincomeearnedbythenationsproducingsector.

3) Supposeactualoutputislessthanpotentialoutput.Iftheoutputgapmeasurestheoutputlossduetothe

failuretoachievefullemployment,itcangenerallybeconcludedthatthelargerthisoutputgap,the

A) greateristheemploymentrate.

B) lowerisfrictionalunemployment.

C) greateristheunemploymentrate.

D) moreupwardpressurethereisonprices.

E) lowerthedeadweightlossofunemployment.

4) Ifacountryslabourforceis15millionpeople,and500000ofthoseareunemployed,thecountrys

unemploymentrateis

A) 2.5percent. B) 3.3percent. C) 4.5percent. D) 6.7percent. E) 9.0percent.

5) Cyclicalunemploymentisassociatedwith

A) peopleenteringthelabourforcetypicallytakesometimetofindajob.

B) anoutputleveldifferentfromtheeconomyspotentialoutput.

C) differencesbetweenthecharacteristicsofthesupplyoflabourandthedemandforlabour.

D) changestotheeconomysindustrialstructureresultingfromgrowthinsomeindustriesanddeclinein

others.

E) peoplequittingtheirpresentjobstolookforotherjobs.

6) ConsiderasmalleconomywithrealGDPof$1billionandthetotalnumberofhoursworkedequalto5million.

Whichofthefollowingisthebestmeasureoflabourproductivityinthiseconomy?

A) realGDPperhourworked=$200

B) realGDPperemployedworker=$20

C) realGDPperhourworked=$20

D) realGDPperemployedworker=$200

E) indeterminablefromtheinformationprovided.

find more resources at oneclass.com

Unlock document

This preview shows pages 1-3 of the document.
Unlock all 29 pages and 3 million more documents.

Already have an account? Log in

7) Economictheoryarguesthattherewillbefewerrealeffectsfrominflationaslongasthe

A) actualrateofinflationislessthan5percent.

B) inflationisfullyanticipatedandnoonechangestheirbehaviour.

C) wholeprivatesectorisunawarethatitishappening.

D) anticipatedrateofinflationislessthantheactualrateofinflation.

E) anticipatedrateofinflationismorethantheactualrateofinflation.

8) SupposetheBankofMontrealwantsafivepercentrealrateofreturnonallitsloans,andanticipatesanannual

inflationrateoffourpercent.Itshouldthereforelenditsmoneyatanominalinterestrateof

A) tenpercent. B) ninepercent. C) fivepercent. D) fourpercent. E) onepercent.

9) If0.75U.S.dollarscanbeexchangedforoneCanadiandollar,wesaythattheCanadian -U.S.exchangerateis

A) 1.25. B) 0.75. C) 75. D) 1.0. E) 1.33.

10) Innational-incomeaccounting,thevalueofintermediateproducts

A) iscountedasfactorincomeinthecalculationofGDPfromtheincomeside.

B) mustequalthevalueaddedbythefirm.

C) shouldbeaddedtothevalueofotherinputsindeterminingafirmscontributiontoGDP.

D) shouldalwaysbecountedaspartofGDPintheexpenditureapproach.

E) shouldbesubtractedfromthevalueoffinalgoodsindeterminingafirmstotalvalueadded.

11) Afarmerraisesfree-rangechickens,whichhesellstoacompanyfor$1000.Thatcompanysellstheprocessed

chickenstoagrocerystorefor$1600,whichinturnproducesroastedchickenswhicharesoldtothepublicfor

$2400.Basedonthisinformation,thevalueoftotaloutputisequalto

A) $1400 B) $2400 C) $5000 D) $4000 E) $1600

12) TransferpaymentsareexcludedfromthegovernmentcomponentinthecalculationofGDPbecause

A) itisdifficulttoassessthemarketvalueofatransferpayment.

B) theyaresmallenoughtoignorewhencomputingthenationalaccounts.

C) theyarenotcountedasincomebyanyeconomicagent.

D) theydonotrepresentthepurchaseofagoodoraservice.

E) theydonotgenerateadditionalincomeintheeconomy.

13) OnemajorreasonthatGDPisaninaccuratemeasureofthetruelevelofeconomicactivityisthat

A) itdoesnotincludenon-marketactivities.

B) peoplefrequentlybuythingstheydonotwant.

C) itcannotbeadjustedforchangesinprices.

D) itisstatisticallyveryinaccurate.

E) alloftheabove

14) OnereasonthatrealGDPtendstooverstatetheeconomicwell-

eingofthecountrysresidentsisthatitignores

A) thetipsthatwaitersreceive.

B) themarket-

asedactivitydonefromthehome.

C) thecostsofincreasedleisuretime.

D) theeconomicbadsassociatedwithproduction,suchaspollution.

E) transactionssuchasteenaged-

abysittingservices.

find more resources at oneclass.com

Unlock document

This preview shows pages 1-3 of the document.
Unlock all 29 pages and 3 million more documents.

Already have an account? Log in

15) Inthesimplemacroeconomicmodel,autonomousexpendituresare

A) thosewhichareconstant.

B) non-domesticexpenditures.

C) dependentonnationalincome.

D) inducedexpenditures.

E) notdependentonnationalincome.

FIGURE21-1

16) RefertoFigure21-1.TheAPCwillbeequaltoone(1.0)whendisposableincomeisequalto

B) 0.

E) noneoftheabove.

17) Ifafamilysannualdisposableincomerosefrom$60000to$65000andtheirdesiredconsumption

expendituresrosefrom$50000to$54000,itcanbeconcludedthatthefamilys

A) averagepropensitytosaveis0.8.

B) marginalpropensitytoconsumeis0.8.

C) marginalpropensitytoconsumeis$800.

D) marginalpropensitytosaveis0.8.

E) averagepropensitytoconsumeis0.8.

find more resources at oneclass.com

Unlock document

This preview shows pages 1-3 of the document.
Unlock all 29 pages and 3 million more documents.

Already have an account? Log in

ECON 1110 Lecture Notes - Parsec

Get access

Related Documents

ECON 1110 Study Guide - Final Guide: Autarky, Fiscal Policy, Human Capital

ECON 1110 Chapter Notes - Chapter 20: Gdp Deflator

EC140 Study Guide - Final Guide: Interbank, Consumer Confidence, Demand Curve