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WOMENST 1A03 Study Guide - Midterm Guide: Savings Account, Macroeconomics, Reserve Requirement


Department
Women's Studies
Course Code
WOMENST 1A03
Professor
Laura Parker
Study Guide
Midterm

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Name:________________________________________________StudentNumber:_______________
(FamilyName)(GivenNames)
1
ECONOMICS 1BB3
Introductory Macroeconomics
Sections C01, C03, C04
This examination paper includes 11 pages including the title page and 43 questions. You are responsible for
ensuring that your copy of the paper is complete. Please bring any discrepancy to the attention of your
invigilator.
Special Instructions:
Only the McMaster Standard (Casio - FX991) Calculator may be used. This test paper must be
returned along with the scan sheet. Write your name and student number on the test paper and
the scan sheet. If you are writing in the wrong room or at the wrong time, you will lose 3 points off
your test score. If you are wearing a baseball cap, please turn it so the peak is in the back.
Please turn off all cell phones. There should be no electronic devices at your seat other than a
calculator. All books and bags must be left at the front of the room. You will need your student
ID card at your desk, along with your calculator, a pencil, and a pen. If you complete the short
answer section in pencil your test will not be re-graded if there is a dispute. Use an HB pencil to
fill in the scan sheet. If a TA has to grade your scan sheet by hand, you will lose 3 points off your
test score. You cannot fill in the version number of your test paper on the scan sheet.
PracticeTest#2,Winter,2013
ThistestwasgivenduringtheWinter2012term.Your“Test#1”willconsistof
50multiplechoicequestions,not40.Youwillhave90minutestocompletethe
test.

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2
OMR EXAMINATION - STUDENT INSTRUCTIONS
NOTE: IT IS YOUR RESPONSIBILITY TO ENSURE THAT THE ANSWER SHEET IS
PROPERLY COMPLETED: YOUR EXAMINATION RESULT DEPENDS UPON
PROPER ATTENTION TO THESE INSTRUCTIONS.
The scanner, which reads the sheets, senses the shaded areas by their non-reflection of light. A
heavy mark must be made, completely filling the circular bubble, with a HB pencil. Marks made
with a pen or felt-tip marker will NOT be sensed. Erasures must be through or the scanner may
still sense a mark. Do NOT use correction fluid on the sheets. Do NOT put any unnecessary
marks or writing on the sheets.
1. Print your name, student number, course name, section number and the date in the
space provided at the top of Side 1 (red side) of the form.
2. Mark your student number in the space provided on the sheet on Side 1 and fill in
the corresponding bubbles underneath.
3. Mark only ONE choice from the alternatives (1,2,3,4,5, or A,B,C,D,E) provided
for each question. If there is a True/False question, enter response of 1 (or A) as
True, and 2 (or B) as False. The question number is to the left of the bubbles.
Make sure that the number of the question on the scan sheet is the same as the
question number on the test paper.
4. Pay particular attention to the Marking Directions on the form.
5. Begin answering questions using the first set of bubbles, marked “1".

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3
Part A - Multiple Choice (40 points)
Identify the choice that best completes the statement or answers the question. Answer on the scan sheet provided.
1. Which of the following best describes the relationship between government deficit and government debt?
a. If the government currently has a budget deficit, national savings must be higher.
b. If the government currently has a budget deficit, government expenditures must be less than
taxes.
c. If the government currently has a budget deficit, the debt is increasing.
d. If the government currently has a budget deficit, currently it must have also a debt.
Table 29-4 The following information pertains to the Bank of Edmonton.
Assets: Liabilities:
Reserves $100 Deposits $1000
Loans $900
2. Refer to Table 29-4.If the Bank of Canada requires banks to hold 5 percent of deposits as reserves, how much in
excess reserves does the Bank of Edmonton now hold?
a. $5
b. $25
c. $50
d. $55
3. What is the effect of minimum wage laws on unemployment?
a. Minimum wage laws have no impact on unemployment.
b. Minimum wage laws mainly affect skilled workers.
c. Minimum wage laws are the major cause of natural unemployment.
d. Minimum wage laws probably increase teenage unemployment.
4. Given a nominal interest rate of 10 percent, in which of the following cases would you earn the highest after-tax real
interest rate?
a. Inflation is 6 percent, and the tax rate is 20 percent.
b. Inflation is 5 percent, and the tax rate is 30 percent.
c. Inflation is 4 percent, and the tax rate is 40 percent.
d. Inflation is 2 percent, and the tax rate is 50 percent.
5. How does Statistics Canada define the unemployment rate?
a. as the percentage of the adult population that is unemployed
b. as the percentage of the labour force that is unemployed
c. as the percentage of those unemployed relative to the percentage employed
d. as the percentage of the labour force without full-time employment
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