EC301 Open-Book Midterm Exam (Weight 110 points) 1. (7 points) How are presidential election outcomes related to the performance of the economy? 2. (7 points) Discuss the difference between Microeconomics and Macroeconomics. 3. (10 points) Use the concepts of gross and net investment to distinguish between an economy that has a rising stock of capital and one that has a falling stock of capital. “In 1933 net private domestic investment was minus $6 billion. This means that in that particular
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Questions in macroeconomics Instructor: MA. Bui Huy Khoi Chapter 1 What is economics? Top of Form [pic] Question 1 Resources in an economy: a) Are always fixed b) Can never decrease c) Always increase over time d) Are limited at any moment in time [pic] Question 2 Human wants are: a) Always fixed ) Limited c) Unlimited d) Likely to decrease over time [pic] Question 3 The sacrifice involved when you choose
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Real GDP Real variable‚ such as the real interest rate‚ is one where the effects of inflation have been factored in. Real Gross Domestic Product measures the worth of all the goods and services produced stated in the prices of some base year. • Nominal GDP A nominal variable is one where the effects of inflation have not been accounted for. The Nominal Gross Domestic Product measures the worth of all the goods and services produced stated in current prices. Macroeconomics is perceived as
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Macroeconomics I Spring 2012 Homework 5 Instructor: Dang Vu‚ Ph.D. Student name: Student ID: Due date: 04/26/12 Part I: Multiple Choice Questions: (60 points) Choose the best answer (1) among the choices for each question. Please make sure you understand the economics behind all answers rather than just copying your friend’s answers! I will ask you to explain your answer in class. Failure to explain your answer even though you did it right in your homework will lead to deduction of
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Chapter 2 – Thinking Like an Economist • The economist as scientist o They devise theories‚ collect data‚ and then analyze these data in attempt to verify or refute their theories. o Scientific method = the dispassionate development and testing of theories about how the world works. o Although economist use theory and observation like other scientists‚ they face an obstacle that makes their task especially challenging: In economics‚ conducting experiments is often difficult and sometimes
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The Bank of England (BoE) finds itself at a crossroads in terms of its record low interest rate that stands as an attempt to spur Aggregate Demand (AD)‚ The overall demand for all products in an economy at any given price level‚ in spite of an inflation rate of 2.7% that is above the target rate of 2%. BoE recognizes that in a period of extended economic contraction it is important to spur AD as any decrease in AD results in a loss of real output (RGDP). BoE only has the ability to do this using
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Question 1. List the two things that GDP measures. How can GDP measures two things at once? GDP measures the total economy income and total output of goods and services. The reason why GDP measures two things at once is that the output of goods and services and total income‚ quantitatively‚ are the same. For instance‚ every dollar of expenditure by a buyer must become a dollar of income to a seller. 2. What does the consumer price index measure? How is it different from the GDP deflator? Consumer
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Economics 736 Business Conditions Analysis Kashian Quiz #1- Spring 2006 1. Suppose that the economy is characterized by the following equations: C = 160 + 0.6 Yd I = 150 G =150 T = 100 a. Solve for GDP (Y) Y = C+I+G Y=160+0.6(Y-100)+150+150 Y = 400 + 0.6Y Y = 1000 b. Disposable
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modern economists into two parts viz. Micro economics and Macro economics. This division is shown in the chart above. Micro economics and Macro economics‚ both the terms were used in 1933 by Prof. Ragnar Frisch from Oslo University of Norway. Macroeconomics (from the Greek prefix makro- meaning "large" and economics) is a branch of economics dealing with the performance‚ structure‚ behavior‚ and decision-making of an economy as a whole‚ rather than individual markets. This includes national‚ regional
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ECO/372 Macroeconomic Terms and Concepts Macroeconomics study’s the overall level of production in the economy. “Economists assess the success of an economy’s overall performance by studying how it could achieve high rates of output and consumption growth” (Macroeconomics‚ 2008‚ para. 5). In the following paragraphs‚ various aspects of macroeconomics will be analyzed. First‚ the United States (U.S.) functions as a market economy and is affected by fluctuations in production output levels
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