ECON 1010 Study Guide - Midterm Guide: Unemployment, Nominal Interest Rate, Loanable FundsExam
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AP ECON 1010 B
MIDTERM TEST 1 – VERSION 1 (PINK COLOR)
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8. Total exam time is 60 minutes
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MULTIPLE CHOICE Q UESTIONS:
1) Which of the following statements is true?
A) Final goods and services produced in Canada by foreigners are part of Canada's GDP.
B) Final goods and services produced in Canada by foreigners are part of the foreign country's GDP.
C) Final goods and services produced in Canada by foreigners are imports.
D) Final goods and services produced in Canada by foreigners are exports.
E) Final goods and services produced abroad by Canadians are part of Canadian GDP.
2) The purchasers in the goods markets are
A) households and government only.
B) households, firms, government, and those who import our goods.
C) households, firms, and government only.
D) households and firms only.
E) households and net exporters only.
3) Which one of the following is false?
A) Y = C + I + G + X - M
B) Y - C - I - G - X + M = 0
C) Y + M = C + I + G + X
D) Y = C + I + G + M - X
E) X - M = Y - C - I - G
4) CanPack produces plastic parts. At the beginning of the year, they held $24 million worth of capital. At the end of the
year, they held $20 million worth of capital. One can conclude that
A) depreciation exceeded gross investment by $4 million.
B) net investment increased by $4 million.
C) depreciation equals $4 million.
D) gross investment decreased by $4 million.
E) gross investment increased by $4 million.
5) An art collector recently sold a piece of pottery for $300. He had purchased it intially for $200 two years earlier. How
will the most recent sale affect GDP?
A) GDP will increase by $300.
B) GDP will increase by $100.
C) GDP 2 years ago must be adjusted downwards by $200, and current GDP will rise by $300.
D) GDP is unaffected.
E) GDP will increase by $200.
6) The firm that printed your textbook bought the paper from XYZ Paper Mills. This purchase of paper ________ part of
GDP because the paper is ________ good.
A) is; a final B) is not; a final C) is; a non-renewable
D) is not; an intermediate E) is; an intermediate
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