ECON 2002.01 Study Guide - Midterm Guide: Scantron Corporation, Deflation, Business Cycle

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Published on 28 Sep 2018
School
Ohio State University
Department
Economics
Course
ECON 2002.01
Professor
Midterm 2 AU17 Econ 2002.01
Version 1 Name _________________
Instructions:
1. Write your name on the exam.
2. Write “1 under “IDENTIFICATION NUMBER” on the scantron and fill out the bubble “1.
3. Write your name on the scantron, last name first and first name next. Write the recitation number
under the “SPECIAL CODES” on the scantron. You should fill out the bubbles for both name and the
special code.
4. After you answer all the questions, put the exam and the scantron on the table in the front of the room
and leave the room quietly, no talking and no questions. You cannot keep the exam.
Recitation Number
BLDG
Room
Start
End
Days
TA Name
15166
Ramseyer
115
3:00 PM
3:55 PM
F
Lee, Hyung Koo
15168
Journalism
239
4:10 PM
5:05 PM
F
Lee, Hyung Koo
15174
Arps Hall
12
11:30 AM
12:25 PM
M
Lee, Hyung Koo
15167
Ramseyer
9
4:10 PM
5:05 PM
F
Hua,Junyi
15172
Scott Lab
N054
10:20 AM
11:15 AM
M
Hua,Junyi
15175
Ramseyer
115
4:10 PM
5:05 PM
M
Hua,Junyi
15163
McPherson
2019
1:50 PM
2:45 PM
M
Chakraborty,Pubali
15165
Smith Lab
1048
3:00 PM
3:55 PM
F
Chakraborty,Pubali
24260
Denney
238
8:00 AM
8:55 AM
M
Chakraborty,Pubali
15169
Watts Hall
395
1:50 PM
2:45 PM
M
Okahata,Nobuhide
15171
McPherson
2019
8:00 AM
8:55 AM
M
Okahata,Nobuhide
15173
Macquigg
160
4:10 PM
5:05 PM
M
Okahata,Nobuhide
15164
Scott Lab
N054
1:50 PM
2:45 PM
M
Xu,Shuo
15170
McPherson
1046
5:20 PM
6:15 PM
M
Xu,Shuo
24235
Jennings
60
8:00 AM
8:55 AM
M
Xu,Shuo
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1. The consumer price index is the
A) cost of a market basket of goods and services typically consumed in the base year.
B) cost of a market basket of goods and services typically consumed in the current period.
C) ratio of the expenditure of the base year basket in the current year to the expenditure of the base year
basket in the base year.
D) average of the prices of new final goods and services produced in the economy over a period of time.
Answer: C
CPI
207
215
2. Consider the above values of the consumer price index for 2015 and 2016. The inflation rate for 2016
was equal to
A) 215 percent.
B) 21.5 percent.
C) 8.0 percent.
D) 3.9 percent.
Answer: D
Quantity
(2011)
Expenditure
(2011)
Expenditure
(on base year
quantities)
(2016)
6
$300
$420
4
100
120
100
100
500
$500
$1,040
3. Suppose an economy has only three goods and the typical family purchases the amounts given in the
table above. If 2011 is the base year, then what is the CPI for 2016?
A) 40.08
B) 100
C) 180
D) 208
Answer: D
4. Deflation occurs when
A) there is a sustained increase in the price level.
B) there is a one-time increase in the price level.
C) there is a decline in the price level.
D) there is a decrease in the expected rate of inflation.
Answer: C
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5. If real GDP per capita doubles between 2005 and 2020, what is the average annual growth rate of real
GDP per capita?
A) 4.8%
B) 10.5%
C) 15%
D) 21%
Answer: A
Year
Nominal Average
Hourly Earnings
CPI 1982= 100
1965
$2.65
32
2010
22.59
219
6. The table above reports the nominal average hourly earnings in private industry and the consumer
price index for 1965 and 2010.
The real average hourly earnings for 1965 in 1982 dollars equal
A) $1.28.
B) $6.49.
C) $8.28.
D) $15.45.
Answer: C
7. Labor productivity will increase if the ________ increases and/or ________.
A) quantity of capital per hour worked; technology improves
B) quantity of labor per unit of capital; technology improves
C) quantity of capital per hour worked; immigration increases while capital is fixed
D) quantity of labor per unit of capital; immigration increases while capital is fixed
Answer: A
8. Consider the following data for a closed economy:
Y = $12 trillion
C = $8 trillion
I= $2 trillion
G = $2 trillion
TR = $2 trillion
T = $3 trillion
Based on the information above, what is the level of private saving in the economy?
A) $3 trillion
B) $4 trillion
C) $5 trillion
D) $8 trillion
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Document Summary

Instructions: write your name on the exam, write 1 under identification number on the scantron and fill out the bubble 1 , write your name on the scantron, last name first and first name next. Write the recitation number under the special codes on the scantron. 2016: consider the above values of the consumer price index for 2015 and 2016. The inflation rate for 2016 was equal to: 215 percent, 21. 5 percent, 8. 0 percent, 3. 9 percent. Total: suppose an economy has only three goods and the typical family purchases the amounts given in the table above. If 2011 is the base year, then what is the cpi for 2016: 40. 08, 100, 180, 208. Answer: c: if real gdp per capita doubles between 2005 and 2020, what is the average annual growth rate of real. Gdp per capita: 4. 8, 10. 5, 15, 21%

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