econ midterm answer key.pdf

424 views20 pages
Published on 2 Feb 2013
Department
Version 111
THE UNIVERSITY OF WESTERN ONTARIO
LONDON CANADA
Jeannie Gillmore ECONOMICS 1022B-002/004 February 5, 2011
MIDTERM 1
INSTRUCTIONS:
1. The examination begins at 4:00 p.m. and ends at 6:00 p.m.
2. Check that your examination paper contains 17 pages.
3. Use
a BLACK PENCIL to complete your Scantron Form.
Print your NAME and complete your SIGNATURE.
Enter your STUDENT NUMBER.
Enter your SECTION NUMBER, which is either 002 or 004.
4. Please hand in Scantron Form only.
5. You may use a regular calculator but you may not use a programmable or graphing
calculator. Your cell phone may not be used as a calculator.
6. Your cell phone must be switched off and left in your bag at the front of the exam room.
7. You must remain in the examination room until you have finished the exam. No breaks
outside of the examination room will be allowed.
NOTE: QUESTIONS ARE PRINTED ON BOTH SIDES OF EACH PAGE
Unlock document

This preview shows pages 1-3 of the document.
Unlock all 20 pages and 3 million more documents.

Already have an account? Log in
Economics 1022B - 002/004
Mid-term 1 February 5, 2011
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the
question.
Use the figure below to answer the following question.
Figure 1
1) Refer to Figure 1, which shows the circular flow of expenditure and income for Venus. During
2008, A was $100, B was $50, C was $30 and D was $10. How much is aggregate expenditure?
A) $75.
B) $50.
C) $100.
D) $90.
E) None of the above.
2) In calculating GDP, all of the following are excluded except
A) subsidies from the government.
B) the value of all homes built in the year in question.
C) the value of intermediate goods.
D) the value of used goods.
E) purchases of stocks and bonds.
A-1
Unlock document

This preview shows pages 1-3 of the document.
Unlock all 20 pages and 3 million more documents.

Already have an account? Log in
3) How much would the production of a kayak add to GDP if the shell costs $250, the paint costs
$20, the finisher costs $35, the manufacturer sold it to the dealer for $500, and the dealer sold it to
his customer for $800?
A) $305.
B) $1,300.
C) $1,605.
D) $500.
E) $800.
4) Which of the following statements is true?
A) Final goods and services produced in Canada by foreigners are imports.
B) Final goods and services produced in Canada by foreigners are part of the foreign country's
GDP.
C) Final goods and services produced abroad by Canadians are part of Canadian GDP.
D) Final goods and services produced in Canada by foreigners are exports.
E) Final goods and services produced in Canada by foreigners are part of Canada's GDP.
Use the table below to answer the following question.
Table 1
Government expenditures on goods and services $ 500
Wages, salaries, and supplementary labour income 2,000
Depreciation 400
Investment 400
Consumption expenditure 2,200
Net exports -50
Indirect taxes 150
Statistical discrepancy 0
5) Refer to Table 1. Gross domestic product equals
A) $3,050.
B) $3,150.
C) $5,600.
D) $5,050.
E) $3,400.
A-2
Unlock document

This preview shows pages 1-3 of the document.
Unlock all 20 pages and 3 million more documents.

Already have an account? Log in

Get OneClass Grade+

Unlimited access to all notes and study guides.

Grade+All Inclusive
$10 USD/m
You will be charged $120 USD upfront and auto renewed at the end of each cycle. You may cancel anytime under Payment Settings. For more information, see our Terms and Privacy.
Payments are encrypted using 256-bit SSL. Powered by Stripe.