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Final

ECON 1010 Study Guide - Final Guide: European Route E45, Commodore 64, European Route E70Exam


Department
Economics
Course Code
ECON 1010
Professor
All
Study Guide
Final

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Recordyouranswersonthescantronprovided.
Name___________________________________

MULTIPLECHOICE.Choosetheonealternativethatbestcompletesthestatementoranswersthequestion.
1)IncalculatingGDP,economistsusethevalueoffinalgoodsandservicesbecause 1)_______
A)GDPisunderestimatedifintermediategoodsareusedinstead.
B)byusingfinalgoodsandservices,theycanavoiddoublecounting.
C)finalgoodscanbeexportedtoothercountries.
D)intermediategoodsareimportedfromothercountries.
E)noneoftheabove.

2)Thecircularflowdiagramillustratestheexpendituresmadeby 2)_______
A)savings,incometax,andexporters.
B)firmsandhouseholds.
C)households,firms,governmentsandtherestoftheworld.
D)goodsmarkets,financialmarketsfactormarketsandexportmarkets.
E)factormarkets,householdsandinvestors.

3)TheexpenditureapproachmeasuresGDPbyaddingtogether 3)_______
A)wages,salariesandsupplementarylabourincome,corporateprofits,interestand
miscellaneousinvestmentincome,farmersincome,subsidiespaidbythegovernment,
indirecttaxespaid,andincomeofnonfarmunincorporatedbusinesses.
B)thevalueaddedofeachfirmintheeconomy.
C)thetotalexpendituresofconsumers,firms,netexporters,andbygovernmentsatalllevels.
D)wages,salariesandsupplementarylabourincome,corporateprofits,interestand
miscellaneousinvestmentincome,farmersincome,andincomeofnonfarm
unincorporatedbusinesses.
E)compensationofemployees,rentalincome,corporateprofits,netinterest,proprietors
income,indirecttaxespaid,andcapitalconsumptionexpenditures,andbysubtracting
subsidiespaidbythegovernment.

4)Whichoneofthefollowingisnotanexampleofinvestmentintheexpenditureapproachto
measuringGDP?GeneralMotors
4)_______
A)buildsanotherassemblyplant.
B)buyssharesinanothercompany.
C)adds500newcarstoinventories.
D)buysanewautostampingmachine.
E)replacessomeworn-outstampingmachines.

5)TheGDPdeflatorisusedtoadjustnominalGDPforchangesin 5)_______
A)depreciation.
B)nationalincome.
C)theunemploymentrate.
D)thecostofthetypicalurbanworkersmarketbasket.
E)thepricelevel.



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6)WhichoneofthefollowingitemswouldbeinceaseGDP? 6)_______
A)thecostofthepollutioncausedduringtheprocessingofsteelduringtheyear
B)paymentsmadetounemployedworkersduringtheyearaspartoftheirunemployment
compensation
C)thecostofthetoolsusedbyathieftobreakintoyourcar
D)thepurchaseofstocksontheTorontoexchange
E)thepurchaseofstocksontheTokyoexchange

7)Whichoneofthefollowingpeoplewouldbeconsideredunemployed? 7)_______
A)apersonwhohasbeenseekingajobforthelastsixmonths,butrecentlygaveuplooking
becausehewasdiscouragedbyhisjobprospects
B)apart-timeworkerwhorepeatedlyexpressesadesiretobecomeafull-timeworker
C)apersonwhoexpectstobelaidoffbytheendofthemonthbeforenextmonthssurveycan
becompleted
D)apersonwhoisnotlookingforajobnowastheywillbestartingajobin6months
E)apersonwhohasbeenlaidofffor10weeksandisnotlookingsinceheiswaitingtobe
calledbacktohisoldjob

8)Inacountrywithaworking-agepopulationof30million,18millionareemployed,2millionare
unemployed,and2millionoftheemployedareworkingpart-time,halfofwhomwishtowork
full-time.Thesizeoftheemployment-to-populationratiois
8)_______
A)66.7percent.
B)53.3percent.
C)73.3percent.
D)60percent.
E)noneoftheabove.

9)Inadynamiceconomyunderidealconditions,theunemploymentrate 9)_______
A)wouldtendtomoveupwardasthepricelevelrises.
B)wouldtendtomovedownwardasthepricelevelfalls.
C)wouldbepositiveduetonaturalunemployment.
D)shouldbezero.
E)wouldtendtobe6percent.

10)WhentheCPIisbasedon1992prices,aconsumerpriceindexof122in2004meansthat 10)______
A)themarketbasketofconsumergoodsthatcost$122in1992couldbepurchasedfor$100in
2004.
B)pricesofconsumergoodshavegoneupbyafactorof12.2.
C)themarketbasketofconsumergoodsthatcost$100in1992couldbepurchasedfor$122in
2004.
D)anitemthatcost$100in1992nowcosts$122.
E)pricesofconsumergoodshavemorethandoubled.

11)WhenpricesatWendysrise,moreconsumersbuytheirmealsatMcDonaldsinstead.Thisisan
exampleof
11)______
A)outletsubstitution.
B)commoditysubstitution.
C)consumersactiontoboycottWendys.
D)bothAandB.
E)bothBandC.


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
12)Anaggregateproductionfunctioninmacroeconomicsisamodeloftheeconomythat 12)______
A)relatesthequantityofrealGDPsuppliedwiththepricelevel.
B)expressesarelationshipbetweenaggregatesupplyandaggregatedemand.
C)estimatesthequantityofrealGDPsupplied,basedontheeconomicresourcesavailable.
D)relatesthequantityoflaborwiththepotentialrealGDP.
E)estimatesthequantityofrealGDPthatafixedamountofresourcescanproduce.

Usethefigurebelowtoanswerthefollowingquestion(s).
Figure22.1

13)ConsiderFigure22.1.Whichgraph(s)illustrateswhathappenswhenresourcepricesfall? 13)______
A)(a) B)(b) C)(c) D)(d) E)(a)and(b)

14)Whichoneofthefollowingvariablesisnotheldconstantinderivingtheshort-runaggregate
supplycurve?
14)______
A)pricelevel
B)thelevelofwages
C)rawmaterialprices
D)aggregatehoursoflaboursupplied
E)technology

15)Anincreaseinthemoneywagerateswillshift 15)______
A)SASrightward,butleaveLASunchanged.
B)bothSASandLASleftward.
C)SASleftward,butleaveLASunchanged.
D)LASrightward,butleaveSASunchanged.
E)bothSASandLASrightward.


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