Study Guides (390,000)
CA (150,000)
York (10,000)
ECON (900)
ECON 1010 (200)
All (70)
Midterm

ECON 1010 Study Guide - Midterm Guide: Output Gap, Potential Output, Market BasketExam


Department
Economics
Course Code
ECON 1010
Professor
All
Study Guide
Midterm

This preview shows pages 1-2. to view the full 8 pages of the document.
YORK UNIVERSITY
FACULTY OF LIBERAL ARTS AND PROFESSIONAL STUDIESDEPARTMENT OF ECONOMICS
AP/ECON 1010.03 SECTION T
Introduction to Macroeconomics
TEST #1 VERSION A
!
INSTRUCTOR: Tuesday, February 2nd, 2016
Gordana Colby 1 HOUR (4:00PM – 5:00PM)
LOCATION: ACE 102
NAME: _________________________________ _________________________________
LAST NAME FIRST NAME
STUDENT NUMBER: _______________________________________
SIGNATURE: _______________________________________
INSTRUCTIONS:
Make sure to print your NAME, STUDENT NUMBER and SIGN the sheet above. Write your
name and student number at the top left of each page.
Please fill in your answer to each question on the question paper in the space provided and
on the scantron sheet.
You must use a pencil to fill in the scantron sheets.
NO CALCULATORS are allowed.
You have 1 hour to answer all questions. All questions are multiple choice format.
For multiple choice answers, no work needs to be shown. The full marks will be granted if the
best answer is circled and zero otherwise.
Good luck!

Only pages 1-2 are available for preview. Some parts have been intentionally blurred.

ECON1010 T - TEST 1
Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1)
Which of the following is not correct?
A)
Depreciation decreases the value of a firm's capital.
B)
Net investment equals gross investment minus depreciation.
C)
Gross investment is the amount by which the value of capital increases.
D)
Investment is the purchase of new plant, equipment, and buildings and the additions to
inventories.
E)
Gross investment is the total amount spent buying new capital and replacing depreciated
capital.
1)
Use
the
information
below
to
answer
the
following
questions.
Fact 20.1.3
The components and robots for Toyota auto assembly lines in Canada are built in Japan. Toyota assembles cars for the
Canadian market in Ontario.
2)
Refer to Fact 20.1.3. Choose the statement that is incorrect.
A)
If any parts for the cars come from Japan, they are Canadian imports.
B)
If any parts for the cars come from Japan, they are recorded as a positive entry in
calculating Canada's GDP.
C)
The assembly line components and robots appear as exports in Japan's GDP.
D)
Expenditure made by Toyota on building the assembly plant in Ontario is recorded as
investment.
E)
Expenditure on the cars is part of consumption expenditure in calculating Canada's GDP.
2)
3)
If nominal GDP increased by 11 percent during a year while real GDP increased by only 5
percent, then the
A)
price level increased by 6 percent.
B)
price level remained steady but real output fell by 6 percent.
C)
price level decreased by 6 percent.
D)
price level increased by 16 percent.
E)
unemployment rate fell during the year.
3)
A - 1
You're Reading a Preview

Unlock to view full version

Only pages 1-2 are available for preview. Some parts have been intentionally blurred.

Use
the
table
below
to
answer
the
following
questions.
Table 20.2.6
There are only two goods in this economy.
Price Quantity
Base Year
(dollars)
Current Year
(dollars) Base Year Current Year
Loaves of Bread 1.00 2.10 70,000 75,000
Computer Disks 1.00 1.80 25,000 18,000
4)
Refer to Table 20.2.6. Consider the data in this table. What is current real GDP in terms of
base -year prices?
A)
$93,000
B)
$189,900
C)
$95,000
D)
$192,000
E)
75,000 loaves of bread and 25,000 computer disks
4)
5)
In any year, real GDP
A)
might be greater than, less than, or equal to potential GDP.
B)
increases if potential GDP increases, and decreases if potential GDP decreases.
C)
will always be greater than potential GDP because of the tendency of nations to incur
inflation.
D)
always equals potential GDP.
E)
must always be less than potential GDP.
5)
6)
When we use PPP we can make valid international comparisons of real GDP because we
A)
use data provided by the IMF.
B)
use official government data.
C)
use the price data provided by the two countries but not the quantities.
D)
calculate the value of goods and services produced in two countries using the same
prices.
E)
calculate the value of goods and services produced in two countries using the same
quantities.
6)
7)
At 2012 prices, the value of production in 2013 was 2 percentage points higher than in 2012.
At 2013 prices, the value of production in 2013 was 4 percentage points higher than in 2012.
The chained-dollar real GDP is ________ in 2013 than in 2012.
A)
2 percent greater
B)
4 percent greater
C)
3 percent smaller
D)
2 percent smaller
E)
3 percent greater
7)
A - 2
You're Reading a Preview

Unlock to view full version