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Final

# ECON 2HH3 Final: 2HH3 - Exam Multiple Choice

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School
McMaster University
Department
Economics
Course
ECON 2HH3
Professor
Rizwan Tahir
Semester
Winter

Description
EXAM Practice Quiz 1 1. The real wage denotes a. The number of units of leisure time that can be exchanged for one unit of labour time b. The purchasing power of income earned after taxes paid c. The number of units of labour time that can be exchanged for one unit of consumption goods d. The number of units of labour time that can be exchanged for one unit of leisure time e. The number of unites of consumption goods that can be exchanged for one unit of labour time ANSWER: E 2. Jims Nursery produces and sells 1100 worth of flowers. Jim uses no intermediate inputs. He pays his workers 700 in wages, pays 100 in taxes and pays 200 in interst on a loan. Jims contribution to GDP is a. 2000 b. 900 c. 1100 d. 1800 e. 1000 ANSEWER: C 3. The property of diminishing marginal rate of substitution follows from the property that the indifference curve is: a. bowed in toward the origin b. downward sloping c. bowed out from the origin d. concave from the origin e. upward sloping ANSWER: A 4. Real consumption tends to be: a. Procyclical and less variable than real GDP b. Countercyclical and less variable than real GDP c. Countercyclical and more variable than real GDP d. Procyclical and more variable than real GDP e. Acyclical with real GDP ANSWER: A 5. The product approach to calculating GDP values government production at: a. Market prices b. Its estimated value to society c. Its cost of production d. Its intermediate costs e. The total amount of taxes it collects ANSWER: C
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