macroeconomics Test2
服务员求职简历-阜阳红旗中学
ECON 2803
Test 2
Spring 2010
____ 1.
____ 2.
____ 3.
____ 4.
____ 5.
Multiple Choice
Identify the letter of the choice that best
completes the statement or answers the question.
Over time, people have come to rely more
on market-produced goods and less on goods that
they produce for
themselves. For example,
busy people with high incomes, rather than
cleaning their own houses, hire people
to
clean their houses. By itself, this change has
a. caused measured GDP to fall.
b. not
caused any change in measured GDP.
c. caused
measured GDP to rise.
d. probably changed
measured GDP, but in an uncertain direction; the
direction of the
change depends on the
difference in the quality of the cleaning that has
resulted.
Transactions involving items
produced in the past, such as the sale of a
5-year-old automobile by a used car
dealership
or the purchase of an antique rocking chair by a
person at a yard sale, are
a. included in
current GDP because GDP measures the value of all
goods and services sold
in the current year.
b. included in current GDP but valued at their
original prices.
c. not included in current
GDP because GDP only measures the value of goods
and services
produced in the current year.
d. not included in current GDP because these
items have no current value.
Transfer payments
are
a. included in GDP because they represent
income to individuals.
b. included in GDP
because they eventually will be spent on
consumption.
c. not included in GDP because
they are not payments for currently produced goods
or
services.
d. not included in GDP
because taxes will have to be raised to pay for
them.
Real GDP is the yearly production of
final goods and services valued at
a. current
prices.
b. constant prices.
c. expected
future prices.
d. the ratio of current prices
to constant prices.
Changes in nominal GDP
reflect
a. only changes in prices.
b. only
changes in the amounts being produced.
c. both
changes in prices and changes in the amounts being
produced.
d. neither changes in prices nor
changes in the amounts being produced.
____ 6.
____ 7.
____ 8.
____ 9.
____ 10.
____ 11.
Table
23-4
The table below contains data for
the country of Dachsland, which produces only
pretzels and books. The
base year is 2005.
Year Price Quantity Price Quantity of
of of of Books
Pretzels Pretzels Books
2005 $$4.00 90 $$1.50 150
2006 $$4.00 100
$$2.00 180
2007 $$5.00 120 $$2.50 200
2008
$$6.00 150 $$3.50 200
Refer to Table 23-4.
In 2005, Dachsland’s
a. nominal GDP was
greater than real GDP, and the GDP deflator was
greater than 100.
b. nominal GDP was equal to
real GDP, and the GDP deflator was equal to 1.
c. nominal GDP was less than real GDP, and the
GDP deflator was less than 100.
d. nominal GDP
was equal to real GDP, and the GDP deflator was
equal to 100.
Refer to Table 23-4. In 2006,
Dachsland’s
a. nominal GDP was $$585, real GDP
was $$660, and the GDP deflator was 88.6.
b.
nominal GDP was $$585, real GDP was $$670, and the
GDP deflator was 87.3.
c. nominal GDP was
$$760, real GDP was $$660, and the GDP deflator was
115.2.
d. nominal GDP was $$760, real GDP was
$$670, and the GDP deflator was 113.4.
GDP does
not reflect
a. the value of leisure.
b.
the value of goods and services produced at home.
c. the quality of the environment.
d. All
of the above are correct.
The CPI is more
commonly used as a gauge of inflation than the GDP
deflator is because
a. the CPI is easier to
measure.
b. the CPI is calculated more often
than the GDP deflator is.
c. the CPI better
reflects the goods and services bought by
consumers.
d. the GDP deflator cannot be used
to gauge inflation.
When computing the cost of
the basket of goods and services purchased by a
typical consumer, which of the
following
changes from year to year?
a. the quantities
of the goods and services purchased
b. the
prices of the goods and services
c. the goods
and services making up the basket
d. All of
the above are correct.
The price index was 120
in 2006 and 127.2 in 2007. What was the inflation
rate?
a. 5.7 percent
b. 6.0 percent
c.
7.2 percent
d. 27.2 percent
____ 12.
____ 13.
____ 14.
____ 15.
____ 16.
____ 17.
____
18.
Table 24-2
The table below
pertains to Iowan, an economy in which the typical
consumer’s basket consists of 3 pounds
of pork
and 4 bushels of corn.
Year Price of Price of
Pork Corn
2008 $$20 per pound $$12 per
bushel
2009 $$25 per pound $$18 per bushel
Refer to Table 24-2. If 2008 is the base
year, then the CPI for 2008 was
a. 73.5.
b. 100.
c. 108.
d. 136.1.
Refer to
Table 24-2. If 2008 is the base year, then the
CPI for 2009 was
a. 73.5.
b. 100.
c.
136.1.
d. 147.
One problem with the
consumer price index stems from the fact that,
over time, consumers tend to buy larger
quantities of goods that have become
relatively less expensive and smaller quantities
of goods that have
become relatively more
expensive. This problem is called
a. price-
change neglect.
b. unmeasured quality change.
c. substitution bias.
d. relative bias.
The CPI differs from the GDP deflator in that
a. the CPI is an inflation index, while the
GDP deflator is a price index.
b. substitution
bias is not a problem with the CPI, but it is a
problem with the GDP deflator.
c. increases in
the prices of foreign produced goods that are sold
to U.S. consumers show up
in the GDP deflator
but not in the CPI.
d. increases in the prices
of domestically produced goods that are sold to
the U.S.
government show up in the GDP
deflator but not in the CPI.
If the CPI was 95
in 1955 and is 475 today, then $$100 today
purchases the same amount of goods and services
as
a. $$4.75 purchased in 1955.
b.
$$20.00 purchased in 1955.
c. $$95.00 purchased
in 1955.
d. $$500 purchased in 1955.
The
equipment and structures available to produce
goods and services are called
a. physical
capital.
b. human capital.
c. the
production function.
d. technology.
An
understanding of the best ways to produce goods
and services is called
a. human capital.
b. physical capital.
c. technology.
d.
productivity.
____ 19. “When workers
have a relatively small quantity of capital to use
in producing goods and services, giving them
an additional unit of capital increases their
productivity by a relatively large amount.” This
statement
a. is an assertion that production
functions have the property of constant returns to
scale.
b. is consistent with the view that
capital is subject to diminishing returns.
c.
is inconsistent with the view that it is easier
for a country to grow fast if it starts out
relatively poor.
d. All of the above are
correct.
____ 20. In countries that experience
political instability, standards of living tend to
be low because of
a. violations of diminishing
returns.
b. excessive levels of caloric
intake.
c. lack of respect for property
rights.
d. attempts by government officials to
thwart the catch-up effect.
____ 21. It has
been suggested that a possible benefit of rapid
population growth is the likelihood that when
there are
more people, then there are more
a. teachers, and so students acquire more
knowledge and skills.
b. people to discover
things, and so technological progress is rapid.
c. savers, and so capital per worker tends to
increase over time.
d. consumers, and so
economic growth is more rapid.
____ 22. In the
long run, a higher saving rate
a. cannot
increase the capital stock.
b. means that
people must consume less in the future.
c.
increases the level of productivity.
d. None
of the above is correct.
____ 23. The primary
economic function of the financial system is to
a. keep interest rates low.
b. provide
expert advice to savers and investors.
c.
match one person’s consumption expenditures with
another person’s capital expenditures.
d.
match one person’s saving with another person’s
investment.
____ 24. Financial intermediaries
are
a. the same as financial markets.
b.
individuals who make profits by buying a stock low
and selling it high.
c. a more general name
for financial assets such as stocks, bonds, and
checking accounts.
d. financial institutions
through which savers can indirectly provide funds
to borrowers.
____ 25. In a closed economy,
what does (Y - T - C) represent?
a. national
saving
b. government tax revenue
c. public
saving
d. private saving
____ 26. Suppose
that in a closed economy GDP is equal to 11,000,
taxes are equal to 2,500 consumption equals 7,500
and government purchases equal 2,000. What are
private saving, public saving, and national
saving?
a. 1,500, 1,000, and 500, respectively
b. 1,000, 500, and 1,500, respectively
c.
500, 1,500, and 1,000, respectively
d. None of
the above is correct.
____ 27. The source of
the supply of loanable funds
a. is saving and
the source of demand for loanable funds is
investment.
b. is investment and the source of
demand for loanable funds is saving.
c. and
the demand for loanable funds is saving.
d.
and the demand for loanable funds is investment.
____ 28. If the nominal interest rate
is 10 percent and the inflation rate is 4 percent,
then the real interest rate is
a. 14 percent.
b. 6 percent.
c. 2.5 percent.
d. .4
percent.
____ 29. If the government institutes
policies that increase incentives to save, then in
the loanable funds market
a. the demand for
loanable funds shifts right.
b. the demand for
loanable funds shifts left.
c. the supply of
loanable funds shifts right.
d. the supply of
loanable funds shifts left.
____ 30. A larger
budget deficit
a. raises the interest rate
and investment.
b. reduces the interest rate
and investment.
c. raises the interest rate
and reduces investment.
d. reduces the
interest rate and raises investment.
Table 28-1
Labor Data for Wrexington
Year 2004 2005 2006
Adult population
2000 3000 3200
Number of employed 1400 1300
1600
Number of unemployed 200 600 200
____ 31. Refer to Table 28-1. The
unemployment rate of Wrexington in 2004 was
a.
10%.
b. 12.5%.
c. 14.3%.
d. 80%.
____ 32. Refer to Table 28-1. The labor-force
participation rate of Wrexington in 2006 was
a. 50%.
b. 53.3%.
c. 56.25%.
d.
88.9%.
____ 33. Which of the following is not
a cause of the decline in the U.S. men’s labor-
force participation rate over the
past several
decades?
a. young men now stay in school
longer than their fathers and grandfathers did
b. older men now retire earlier and live
longer
c. with more women employed, there are
fewer jobs now available to men
d. more
fathers now stay at home to raise their children
____ 34. John is a stockbroker. He has had
several job offers, but he has turned them down
because he thinks he can
find a firm that
better matches his tastes and skills. Curtis has
looked for work as an accountant for some
time. While the demand for accountants
doesn’t appear to be falling, there seems to be
more people
applying than jobs available.
a. John and Curtis are both frictionally
unemployed.
b. John and Curtis are both
structurally unemployed.
c. John is
frictionally unemployed, and Curtis is
structurally unemployed.
d. John is
structurally unemployed, and Curtis is
frictionally unemployed.
____ 35.
Efficiency-wage theory suggests that paying
a.
low wages might be profitable because they raise
the efficiency of a firm’s workers.
b. low
wages might be profitable because they lower the
efficiency of a firm’s workers.
c. high wages
might be profitable because they raise the
efficiency of a firm’s workers.
d. high wages
might be profitable because they lower the
efficiency of a firm’s workers.
____ 36. When
we want to measure and record economic value, we
use money as the
a. liquid asset.
b.
medium of exchange.
c. unit of account.
d.
store of value.
____ 37. Currently, U.S.
currency is
a. fiat money with intrinsic
value.
b. fiat money with no intrinsic value.
c. commodity money with intrinsic value.
d. commodity money with no intrinsic value.
____ 38. Credit card limits are included in
a. M1 but not M2.
b. M2 but not M1.
c.
M1 and M2.
d. neither M1 nor M2.
____ 39.
Who was appointed chairman of the Board of
Governors in 2005 by President George W. Bush?
a. Alan Greenspan
b. Bennett McCallum
c. R. Glenn Hubbard
d. Ben Bernanke
____ 40. Which tool of monetary policy does
the Federal Reserve use most often?
a.
adjustments to long-term interest rates
b.
open-market operations
c. changes in reserve
requirements
d. changes in the discount rate
____ 41. If the reserve ratio for all banks is
5 percent, then $$2,500 of additional reserves can
create up to
a. $$62,500 of new money.
b.
$$50,000 of new money.
c. $$45,600 of new money.
d. $$37,500 of new money.
____ 42. Which of
the following lists two things that both increase
the money supply?
a. make open market
purchases, raise the reserve requirement
b.
make open market purchases, lower the reserve
requirement
c. make open market sales, raise
the reserve requirement
d. make open market
sales, lower the reserve requirement
____ 43.
If P denotes the price of goods and services
measured in terms of money, then
a. 1P
represents the value of money measured in terms of
goods and services.
b. P can be interpreted as
the inflation rate.
c. the supply of money
influences the value of P, but the demand for
money does not.
d. All of the above are
correct.
____ 44. If M = 3,000, P = 2,
and Y = 12,000, what is velocity?
a. 12
b.
2
c. 4
d. 8
____ 45. When the money
market is drawn with the value of money on the
vertical axis, an increase in the money
supply
a. increases the price level and increases the
value of money.
b. increases the price level
and decreases the value of money.
c. decreases
the price level and increases the value of money.
d. decreases the price level and decreases the
value of money.
____ 46. The principle of
monetary neutrality implies that an increase in
the money supply will
a. increase real GDP and
the price level.
b. increase real GDP, but not
the price level.
c. increase the price level,
but not real GDP.
d. increase neither the
price level nor real GDP.
____ 47. The
inflation tax
a. transfers wealth from the
government to households.
b. is the increase
in income taxes due to lack of indexation.
c.
is a tax on everyone who holds money.
d. All
of the above are correct.
____ 48. The
shoeleather cost of inflation refers to
a. the
redistributional effects of unexpected inflation.
b. the time spent searching for low prices
when inflation rises.
c. the waste of
resources used to maintain lower money holdings.
d. the increased cost to the government of
printing more money.
____ 49. In the U.S.,
taxes on capital gains are computed using
a.
nominal gains. This is one way by which higher
inflation discourages saving.
b. nominal
gains. This is one way by which higher inflation
encourages saving.
c. real gains. This is one
way by which higher inflation discourages saving.
d. real gains. This is one way by which
higher inflation encourages saving.
____ 50.
If the economy unexpectedly went from inflation to
deflation,
a. both debtors and creditors would
have reduced real wealth.
b. both debtors and
creditors would have increased real wealth.
c.
debtors would gain at the expense of creditors.
d. creditors would gain at the expense of
debtors.
____ 51. In the blog post “Deficit
Neutrality,” where did the Friend want to go?
a. Europe c. Bermuda
b. Mexico d.
Australia
____ 52. Americans now spend how
much more time in retirement than they did a
generation or two ago.
a. The same amount of
time c. Four times as long
b. Twice as long d.
The times now is actually shorter
____ 53.
Pigouvian taxes try to correct for negative
externalities and are favored by a majority of
economists, while sin
taxes try to correct for
what as deemed by a social planner?
a. good
behavior c. lack of sleep
b. bad behavior d. I
have no idea since I did not read the
blog.
Test 2 – Spring 2010
Answer
Section
MULTIPLE CHOICE
1. ANS: C
PTS: 1 DIF: 2 REF: 23-2
NAT: Analytic LOC: The
study of economics and definitions in economics
TOP: GDP MSC: Applicative
2. ANS: C PTS: 1
DIF: 2 REF: 23-2
NAT: Analytic LOC: The study
of economics and definitions in economics
TOP:
GDP MSC: Applicative
3. ANS: C PTS: 1 DIF: 2
REF: 23-3
NAT: Analytic LOC: The study of
economics and definitions in economics
TOP:
Transfer payments MSC: Interpretive
4. ANS: B
PTS: 1 DIF: 1 REF: 23-4
NAT: Analytic LOC: The
study of economics and definitions in economics
TOP: Real GDP MSC: Definitional
5. ANS: C
PTS: 1 DIF: 2 REF: 23-4
NAT: Analytic LOC: The
study of economics and definitions in economics
TOP: Nominal GDP MSC: Interpretive
6.
ANS: D PTS: 1 DIF: 2 REF: 23-4
NAT: Analytic
LOC: The study of economics and definitions in
economics
TOP: Nominal GDP | Real GDP | GDP
deflator MSC: Applicative
7. ANS: D PTS: 1
DIF: 2 REF: 23-4
NAT: Analytic LOC: The study
of economics and definitions in economics
TOP:
Nominal GDP | Real GDP | GDP deflator MSC:
Applicative
8. ANS: D PTS: 1 DIF: 2 REF: 23-5
NAT: Analytic LOC: The study of economics and
definitions in economics
TOP: GDP MSC:
Interpretive
9. ANS: C PTS: 1 DIF: 2 REF: 24-0
NAT: Analytic LOC: The study of economics and
definitions in economics
TOP: CPI | GDP
deflator MSC: Interpretive
10. ANS: B PTS: 1
DIF: 2 REF: 24-1
NAT: Analytic LOC: The study
of economics and definitions in economics
TOP:
CPI MSC: Interpretive
11. ANS: B PTS: 1 DIF: 2
REF: 24-1
NAT: Analytic LOC: Unemployment and
inflation TOP: Inflation rate
MSC:
Applicative
12. ANS: B PTS: 1 DIF: 2 REF: 24-1
NAT: Analytic LOC: The study of economics and
definitions in economics
TOP: CPI MSC:
Applicative
13. ANS: C PTS: 1 DIF: 2 REF: 24-1
NAT: Analytic LOC: The study of economics and
definitions in economics
TOP: CPI MSC:
Applicative
14. ANS: C PTS: 1 DIF: 1 REF: 24-1
NAT: Analytic LOC: The study of economics and
definitions in economics
TOP: CPI |
Substitution bias MSC: Definitional
15. ANS: D
PTS: 1 DIF: 2 REF: 24-1
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
NAT:
Analytic LOC: The study of economics and
definitions in economics
TOP: CPI | GDP
deflator MSC: Interpretive
ANS: B PTS: 1 DIF:
2 REF: 24-2
NAT: Analytic LOC: The study of
economics and definitions in economics
TOP:
Comparing dollar figures MSC: Applicative
ANS:
A PTS: 1 DIF: 1 REF: 25-2
NAT: Analytic LOC:
The study of economics and definitions in
economics
TOP: Physical capital MSC:
Definitional
ANS: C PTS: 1 DIF: 1 REF: 25-2
NAT: Analytic LOC: The study of economics and
definitions in economics
TOP: Technology MSC:
Definitional
ANS: B PTS: 1 DIF: 2 REF: 25-3
NAT: Analytic LOC: Productivity and growth
TOP: Diminishing returns
MSC:
Interpretive
ANS: C PTS: 1 DIF: 2 REF: 25-3
NAT: Analytic LOC: Productivity and growth
TOP: Property rights | Standard of living
MSC:
Interpretive
ANS: B PTS: 1 DIF: 2 REF: 25-3
NAT: Analytic LOC: Productivity and growth
TOP: Population growth
MSC:
Interpretive
ANS: C PTS: 1 DIF: 2 REF: 25-3
NAT: Analytic LOC: Productivity and growth
TOP: Saving
MSC: Interpretive
ANS: D PTS: 1
DIF: 2 REF: 26-0
NAT: Analytic LOC: The study
of economics and definitions in economics
TOP:
Financial system MSC: Interpretive
ANS: D PTS:
1 DIF: 1 REF: 26-1
NAT: Analytic LOC: The
study of economics and definitions in economics
TOP: Financial intermediaries MSC:
Definitional
ANS: D PTS: 1 DIF: 1 REF: 26-2
NAT: Analytic LOC: The study of economics and
definitions in economics
TOP: Private saving
MSC: Definitional
ANS: B PTS: 1 DIF: 3 REF:
26-2
NAT: Analytic LOC: The study of economics
and definitions in economics
TOP: Private
saving | Public saving | National saving MSC:
Applicative
ANS: A PTS: 1 DIF: 1 REF: 26-3
NAT: Analytic LOC: Understanding and applying
economic models
TOP: Market for loanable funds
MSC: Definitional
ANS: B PTS: 1 DIF: 1 REF:
26-3
NAT: Analytic LOC: The study of economics
and definitions in economics
TOP: Nominal
interest rate | Real interest rate MSC:
Definitional
ANS: C PTS: 1 DIF: 2 REF: 26-3
NAT: Analytic LOC: Understanding and applying
economic models
TOP: Saving | Market for
loanable funds MSC: Analytical
ANS: C PTS: 1
DIF: 2 REF: 26-3
NAT: Analytic LOC:
Understanding and applying economic models
TOP: Budget surpluses MSC:
Interpretive
ANS: B PTS: 1 DIF: 2 REF: 28-1
NAT: Analytic LOC: Unemployment and inflation
TOP: Unemployment rate
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
MSC:
Applicative
ANS: C PTS: 1 DIF: 2 REF: 28-1
NAT: Analytic LOC: The study of economics and
definitions in economics
TOP: Labor-force
participation rate MSC: Applicative
ANS: C PTS:
1 DIF: 2 REF: 28-1
NAT: Analytic LOC: The
study of economics and definitions in economics
TOP: Labor-force participation rate MSC:
Interpretive
ANS: C PTS: 1 DIF: 2 REF: 28-1
NAT: Analytic LOC: Unemployment and inflation
TOP: Frictional unemployment | Structural
unemployment MSC: Interpretive
ANS: C PTS: 1
DIF: 2 REF: 28-5
NAT: Analytic LOC: Labor
markets TOP: Efficiency wages
MSC:
Interpretive
ANS: C PTS: 1 DIF: 1 REF: 29-1
NAT: Analytic LOC: The role of money TOP:
Money
MSC: Definitional
ANS: B PTS: 1 DIF:
1 REF: 29-1
NAT: Analytic LOC: The role of
money TOP: Commodity money | Money
MSC:
Definitional
ANS: D PTS: 1 DIF: 1 REF: 29-1
NAT: Analytic LOC: The role of money TOP:
Money supply
MSC: Definitional
ANS: D PTS:
1 DIF: 1 REF: 29-2
NAT: Analytic LOC: Monetary
and fiscal policy TOP: Federal Reserve System
MSC: Definitional
ANS: B PTS: 1 DIF: 1 REF:
29-3
NAT: Analytic LOC: Monetary and fiscal
policy TOP: Monetary policy
MSC:
Applicative
ANS: B PTS: 1 DIF: 1 REF: 29-3
NAT: Analytic LOC: Monetary and fiscal policy
TOP: Money multiplier
MSC: Applicative
ANS:
B PTS: 1 DIF: 2 REF: 29-3
NAT: Analytic LOC:
Monetary and fiscal policy
TOP: Money supply
| Open-market operations | Reserve requirements
MSC: Definitional
ANS: A PTS: 1 DIF: 2 REF:
30-1
NAT: Analytic LOC: The role of money
TOP: Price level | Value
MSC:
Interpretive
ANS: D PTS: 1 DIF: 2 REF: 30-1
NAT: Analytic LOC: The role of money TOP:
Quantity equation
MSC: Applicative
ANS: B
PTS: 1 DIF: 2 REF: 30-1
NAT: Analytic LOC: The
role of money TOP: Money market
MSC:
Applicative
ANS: C PTS: 1 DIF: 1 REF: 30-1
NAT: Analytic LOC: The role of money TOP:
Monetary neutrality
MSC: Definitional
ANS:
C PTS: 1 DIF: 1 REF: 30-2
NAT: Analytic LOC:
The role of money TOP: Inflation tax
48.
49.
50.
MSC:
Interpretive
ANS: C
NAT: Analytic
MSC:
Definitional
ANS: A
NAT: Analytic
MSC:
Definitional
ANS: D
NAT: Analytic
MSC:
Analytical
PTS: 1 DIF: 1
LOC: Unemployment
and inflation
PTS: 1 DIF: 2
LOC:
Unemployment and inflation
PTS: 1 DIF: 2
LOC: The role of money
REF: 30-2
TOP:
Shoeleather costs of inflation
REF: 30-2
TOP: Taxes | Inflation | Capital gains
REF: 30-2
TOP: Wealth redistribution |
Inflation
51. ANS: C
52. ANS: B
53.
ANS: B
PTS:
PTS:
PTS:
1
1
1