Eco/252 Midterm Practice Paper
ECO 252 Midterm Practice
Fall 2013
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) Which of the following transactions represents the purchase of a final good? 1) _______
A) Apple computer buys computer processors from Intel.
B) Delta buys a new European-made jetliner.
C) Your father buys a new John Deere riding lawn mower.
D) Starbucks purchases coffee beans.
Table 19-3
Consumption expenditures $800
Investment expenditures 200
Government purchases 300
Exports 100
Imports 200
Wages 800
2) Refer to Table 19-3. Consider the data above (in billions of dollars) for an economy: Gross domestic product (in billions of dollars) for this economy equals 2) _______ …show more content…
Consider the following values of the consumer price index for 1996, 1997, and 1998: The inflation rate for 1997 was equal to 7) _______
A) 1.2 percent. B) 2.0 percent. C) 2.5 percent. D) 4.0 …show more content…
If the CPI is 31 in 1964 and 219 in 2010, then the value of your grandfather's salary in 2010 dollars is approximately 8) _______
A) $63,580. B) $60,830. C) $37,200. D) $26,280.
9) Suppose you borrow $1,000 at an interest rate of 12 percent. If the expected real interest rate is 5 percent, then the rate of inflation over the upcoming year that would be most beneficial to you would be a rate of inflation 9) _______
A) equal to 7 percent. B) equal to 0 percent.
C) greater than 7 percent. D) less than 7 percent.
10) In a closed economy, public saving is equal to which of the following? (Y = GDP, C = Consumption, G = Government purchases, T = Taxes, and TR = Transfers) 10) ______
A) Y - C - T + TR B) Y - G - T C) T - G - TR D) Y - C - T
11) Under which of the following circumstances would the government be running a deficit? 11) ______
A) G = $5 trillion
T = $5 trillion
TR = $1 trillion B) G = $7 trillion
T = $10 trillion
TR = $3 trillion C) G = $7 trillion
T = $7 trillion
TR = $0 D) G = $5 trillion
T = $7 trillion
TR = $1 trillion
Figure 22-1
12) Refer to Figure 22-1. Technological change is illustrated in the per-worker production function in the figure above by a movement from 12)
Fall 2013
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) Which of the following transactions represents the purchase of a final good? 1) _______
A) Apple computer buys computer processors from Intel.
B) Delta buys a new European-made jetliner.
C) Your father buys a new John Deere riding lawn mower.
D) Starbucks purchases coffee beans.
Table 19-3
Consumption expenditures $800
Investment expenditures 200
Government purchases 300
Exports 100
Imports 200
Wages 800
2) Refer to Table 19-3. Consider the data above (in billions of dollars) for an economy: Gross domestic product (in billions of dollars) for this economy equals 2) _______ …show more content…
Consider the following values of the consumer price index for 1996, 1997, and 1998: The inflation rate for 1997 was equal to 7) _______
A) 1.2 percent. B) 2.0 percent. C) 2.5 percent. D) 4.0 …show more content…
If the CPI is 31 in 1964 and 219 in 2010, then the value of your grandfather's salary in 2010 dollars is approximately 8) _______
A) $63,580. B) $60,830. C) $37,200. D) $26,280.
9) Suppose you borrow $1,000 at an interest rate of 12 percent. If the expected real interest rate is 5 percent, then the rate of inflation over the upcoming year that would be most beneficial to you would be a rate of inflation 9) _______
A) equal to 7 percent. B) equal to 0 percent.
C) greater than 7 percent. D) less than 7 percent.
10) In a closed economy, public saving is equal to which of the following? (Y = GDP, C = Consumption, G = Government purchases, T = Taxes, and TR = Transfers) 10) ______
A) Y - C - T + TR B) Y - G - T C) T - G - TR D) Y - C - T
11) Under which of the following circumstances would the government be running a deficit? 11) ______
A) G = $5 trillion
T = $5 trillion
TR = $1 trillion B) G = $7 trillion
T = $10 trillion
TR = $3 trillion C) G = $7 trillion
T = $7 trillion
TR = $0 D) G = $5 trillion
T = $7 trillion
TR = $1 trillion
Figure 22-1
12) Refer to Figure 22-1. Technological change is illustrated in the per-worker production function in the figure above by a movement from 12)