This document provides an economics assignment that includes multiple choice and short answer questions about key economic concepts and metrics. Specifically, it tests understanding of:
- GDP and its components in the expenditure and income methods.
- Business cycles and different schools of thought on how to address them.
- Unemployment types and how they are measured.
- Inflation and price indices.
- Converting between nominal and real values using deflators.
- Calculating GDP using national income data.
- Determining what is included in GDP calculations.
The assignment requires students to demonstrate knowledge of foundational economic concepts through different question formats and uses data in short answer questions to have students apply these
This document discusses different approaches to calculating GDP - output based, expenditure based, and income based. It provides examples of calculating GDP using the value added method under output based and explains the components of expenditure based GDP - consumption, investment, government spending, and net exports. It also discusses problems in measuring GDP like excluding unpaid or illegal activities and not accounting for quality improvements or environmental damage.
Bus 475 final exam 100 questions with answers 4th set answers are hererenat88
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Customer support is very important to us. Please use our online chat system in case you have any questions. Also, you can email them to us at homeworkmye@gmail.com. We will do our best to answer you!
CAPE Economics, June 2007, Unit 1, Paper 2 suggested answer by Edward BahawCAPE ECONOMICS
This document contains solutions to past CAPE Economics exam questions from June 2007. It includes analysis of concepts like utility, marginal utility, demand and supply, production functions, costs of production, and market structures. Key points covered are the optimal consumption levels that maximize utility subject to a budget constraint, the impact of price ceilings, the relationship between average and marginal physical products as labor input increases, and definitions of price elasticity of demand under different market structures.
Bus 475 final exam 100 questions with answers 2nd set answers are hererenat88
This document provides the questions and answers to the BUS 475 Final Exam. It begins by stating "BUS 475 Final Exam 100 Questions with Answers 2nd Set Answers are HERE!" and lists 31 multiple choice questions related to accounting, economics, management, and entrepreneurship, along with their corresponding answers.
Bus 475 final Exam best solution http://take-exams.com/tutorials/view/41-bus-...takeExams
This document contains a 50 question multiple choice exam covering topics in business, accounting, statistics, and management. The exam tests knowledge in areas such as accounting principles, financial statements, budgeting, cost-volume-profit analysis, regression, quality control, linear programming, and project management. Students must demonstrate understanding of key concepts, formulas, and analytical methods across various business disciplines.
Measurement of equilibrium level of national incomeShiva Jaiswal
The equilibrium level of national income is reached when aggregate demand equals aggregate supply. Aggregate demand includes both consumer demand and producer demand. Similarly, aggregate supply includes both consumption goods and investment goods produced. Equilibrium occurs at the level of income where total goods demanded equals total goods supplied, so that there is neither excess supply nor shortage. According to the Keynesian view, savings and investment may not always be equal since they are undertaken by different economic agents and their decisions may differ. Equilibrium is characterized by equality between real savings and real investment.
This document discusses different approaches to calculating GDP - output based, expenditure based, and income based. It provides examples of calculating GDP using the value added method under output based and explains the components of expenditure based GDP - consumption, investment, government spending, and net exports. It also discusses problems in measuring GDP like excluding unpaid or illegal activities and not accounting for quality improvements or environmental damage.
Bus 475 final exam 100 questions with answers 4th set answers are hererenat88
click on the link, you will find what you were looking for:homeworkmye.com
Customer support is very important to us. Please use our online chat system in case you have any questions. Also, you can email them to us at homeworkmye@gmail.com. We will do our best to answer you!
CAPE Economics, June 2007, Unit 1, Paper 2 suggested answer by Edward BahawCAPE ECONOMICS
This document contains solutions to past CAPE Economics exam questions from June 2007. It includes analysis of concepts like utility, marginal utility, demand and supply, production functions, costs of production, and market structures. Key points covered are the optimal consumption levels that maximize utility subject to a budget constraint, the impact of price ceilings, the relationship between average and marginal physical products as labor input increases, and definitions of price elasticity of demand under different market structures.
Bus 475 final exam 100 questions with answers 2nd set answers are hererenat88
This document provides the questions and answers to the BUS 475 Final Exam. It begins by stating "BUS 475 Final Exam 100 Questions with Answers 2nd Set Answers are HERE!" and lists 31 multiple choice questions related to accounting, economics, management, and entrepreneurship, along with their corresponding answers.
Bus 475 final Exam best solution http://take-exams.com/tutorials/view/41-bus-...takeExams
This document contains a 50 question multiple choice exam covering topics in business, accounting, statistics, and management. The exam tests knowledge in areas such as accounting principles, financial statements, budgeting, cost-volume-profit analysis, regression, quality control, linear programming, and project management. Students must demonstrate understanding of key concepts, formulas, and analytical methods across various business disciplines.
Measurement of equilibrium level of national incomeShiva Jaiswal
The equilibrium level of national income is reached when aggregate demand equals aggregate supply. Aggregate demand includes both consumer demand and producer demand. Similarly, aggregate supply includes both consumption goods and investment goods produced. Equilibrium occurs at the level of income where total goods demanded equals total goods supplied, so that there is neither excess supply nor shortage. According to the Keynesian view, savings and investment may not always be equal since they are undertaken by different economic agents and their decisions may differ. Equilibrium is characterized by equality between real savings and real investment.
The document discusses the effects of taxes on consumption and savings in a three-sector economic model. It provides an example where consumption is modeled as C = 90 + 0.75Yd and savings is S = -90 + 0.25Yd, with Yd being disposable income. A flat tax of T=40 reduces disposable income and lowers consumption and savings across all income levels compared to when there is no tax. A proportional tax of 20% of income also lowers consumption and savings for every income level compared to no tax, due to the reduction in disposable income. In both examples, the change in consumption from the tax (ΔC) equals the marginal propensity to consume (MPC)
Acc 561 acc/561 final exam 100% correct answersGliven
This document provides the answers to a final exam for ACC 561. It contains multiple choice questions related to performance reports, budgets, the role of the treasurer, factors affecting management accounting, principles of ethical professional practice, the importance of ethical accountants, types of accounting such as managerial accounting and financial accounting, basic accounting concepts and conventions, and management control systems.
CAPE Economics, June 2005, Unit 2, Paper 2 suggested answer by Edward BahawCAPE ECONOMICS
This document contains solutions to past CAPE Economics exam papers from 2005. It begins by providing calculations for GDP using the expenditure and income approaches. It then discusses which transactions should and should not be included in GDP calculations. The rest of the document discusses topics related to macroeconomics including the marginal propensity to consume, the multiplier effect, monetary policy tools, money markets, government debt, fiscal policy, and more. Diagrams and calculations are provided to support the explanations.
CAPE Economics, June 2005, Unit 1, Paper 2 suggested answer by Edward BahawCAPE ECONOMICS
This document contains Edward Bahaw's solutions to past CAPE Economics papers. It provides detailed answers and explanations to questions on microeconomics concepts such as production analysis, costs, market structures, and market failures. The solutions include graphs and calculations to illustrate key economic principles like diminishing returns, efficiency under perfect competition versus monopoly, and how externalities can lead to under or overproduction. Overall, the document offers a comprehensive review of microeconomics topics through step-by-step workings of past exam questions.
This document contains the answers to a final exam for an accounting course. It lists multiple choice questions and answers related to performance reports, budgets, the roles of accountants, financial statements, accounting principles, and other accounting topics. The questions assess understanding of key concepts in management, financial, tax, and cost accounting.
The document provides a full ACC 400 final exam with 30 multiple choice questions covering topics like managerial accounting, cost accounting, budgeting, and variance analysis. It also provides the answers to download and check your work. To receive additional exam materials or have questions answered, contact the email provided.
1. The document discusses the characteristics of partnerships, including that partnerships are associations of two or more individuals who jointly own and operate a business for profit.
2. Key characteristics of partnerships include mutual agency where each partner's actions bind the others, limited life as partnerships can end when a partner withdraws or is unable to participate, and unlimited liability where each partner is responsible for all debts of the partnership.
3. The document also briefly discusses other business structures with some partnership characteristics like limited partnerships, limited liability partnerships, and S corporations.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise causes chemical changes in the brain that may help boost feelings of calmness, happiness and focus.
Este documento discute las ventajas y desventajas de usar Prezi en comparación con PowerPoint. Algunas ventajas son que Prezi permite mayor versatilidad e ingenio en las presentaciones debido a mejoras tecnológicas, y también fomenta más creatividad y dinamismo. Una ventaja adicional es que la versión básica de Prezi es gratuita. Una desventaja es que siempre se necesita estar conectado a Internet para usar Prezi. Otra desventaja es que se requiere práctica para dominar bien el uso del
Este documento explica qué es la seguridad informática y contra qué amenazas debemos protegernos, incluyendo virus, troyanos, spyware y phishing. También describe diferentes técnicas de seguridad activa y pasiva, así como programas como antivirus, firewalls y antispam que podemos usar para detener software malicioso.
O documento discute o sistema cardiovascular, incluindo sua estrutura e funções. Ele explica que o sistema consiste no sangue, coração e vasos sanguíneos, e descreve a circulação pulmonar e sistêmica. Também lista distúrbios como hipertensão, aneurisma, AVC e infarto do miocárdio.
There are three main levels of film distributors: local independent distributors, major Hollywood studios, and British distributors. British distributors like Verve Pictures focus on distributing small, low-budget independent films to UK audiences. While Hollywood studios distribute big-budget blockbusters globally, British films typically have smaller audiences and budgets but can still be high quality. The document's film was distributed domestically in the UK by Candi Media Productions, a British distributor more willing to take on the risk of an independent film without stars.
How did you attract/address your audience?medwards-8
The document discusses how films attract and address audiences through various pleasures, including narrative, thematic, representational, style/aesthetic, and genre pleasures. It provides examples of each type of pleasure, such as using an enigma or cliffhanger in the narrative to intrigue audiences, addressing common themes like death or betrayal, and representing relatable locations, ages, or characters for identification. Stylistic elements like cinematography, costumes, and sets can also attract audiences interested in aesthetic qualities. Familiar conventions of different genres likewise appeal to audiences.
The document discusses key concepts in research methods and statistics. It provides definitions and explanations of terms like variables, hypotheses, reliability, validity, experimental research, measures of central tendency and variability, levels of measurement, and the scientific method. The document is a study guide or review of important foundational concepts for conducting quantitative research.
El documento describe el uso de tintes naturales en Mesoamérica desde la época prehispánica. Los mayas utilizaron más de 30 colores en sus murales, incluyendo azules y verdes producidos a partir de arcilla y el tinte azul extraído de la planta índigo. Los tintes rojos, amarillos y negros también se obtuvieron de plantas. Estos colores se usaron para teñir textiles, decorar vasijas y códices, y en rituales. El anil fue una importante fuente de tinte usada por
Este documento describe los diferentes componentes de la pelvis, incluyendo la pelvis falsa y verdadera, y sus limites y características. También describe los diferentes diámetros y planos de la pelvis, así como las articulaciones y formas de la pelvis. Finalmente, explica cómo medir el estrecho superior de la pelvis a través de técnicas radiográficas y examen vaginal.
The document discusses the effects of taxes on consumption and savings in a three-sector economic model. It provides an example where consumption is modeled as C = 90 + 0.75Yd and savings is S = -90 + 0.25Yd, with Yd being disposable income. A flat tax of T=40 reduces disposable income and lowers consumption and savings across all income levels compared to when there is no tax. A proportional tax of 20% of income also lowers consumption and savings for every income level compared to no tax, due to the reduction in disposable income. In both examples, the change in consumption from the tax (ΔC) equals the marginal propensity to consume (MPC)
Acc 561 acc/561 final exam 100% correct answersGliven
This document provides the answers to a final exam for ACC 561. It contains multiple choice questions related to performance reports, budgets, the role of the treasurer, factors affecting management accounting, principles of ethical professional practice, the importance of ethical accountants, types of accounting such as managerial accounting and financial accounting, basic accounting concepts and conventions, and management control systems.
CAPE Economics, June 2005, Unit 2, Paper 2 suggested answer by Edward BahawCAPE ECONOMICS
This document contains solutions to past CAPE Economics exam papers from 2005. It begins by providing calculations for GDP using the expenditure and income approaches. It then discusses which transactions should and should not be included in GDP calculations. The rest of the document discusses topics related to macroeconomics including the marginal propensity to consume, the multiplier effect, monetary policy tools, money markets, government debt, fiscal policy, and more. Diagrams and calculations are provided to support the explanations.
CAPE Economics, June 2005, Unit 1, Paper 2 suggested answer by Edward BahawCAPE ECONOMICS
This document contains Edward Bahaw's solutions to past CAPE Economics papers. It provides detailed answers and explanations to questions on microeconomics concepts such as production analysis, costs, market structures, and market failures. The solutions include graphs and calculations to illustrate key economic principles like diminishing returns, efficiency under perfect competition versus monopoly, and how externalities can lead to under or overproduction. Overall, the document offers a comprehensive review of microeconomics topics through step-by-step workings of past exam questions.
This document contains the answers to a final exam for an accounting course. It lists multiple choice questions and answers related to performance reports, budgets, the roles of accountants, financial statements, accounting principles, and other accounting topics. The questions assess understanding of key concepts in management, financial, tax, and cost accounting.
The document provides a full ACC 400 final exam with 30 multiple choice questions covering topics like managerial accounting, cost accounting, budgeting, and variance analysis. It also provides the answers to download and check your work. To receive additional exam materials or have questions answered, contact the email provided.
1. The document discusses the characteristics of partnerships, including that partnerships are associations of two or more individuals who jointly own and operate a business for profit.
2. Key characteristics of partnerships include mutual agency where each partner's actions bind the others, limited life as partnerships can end when a partner withdraws or is unable to participate, and unlimited liability where each partner is responsible for all debts of the partnership.
3. The document also briefly discusses other business structures with some partnership characteristics like limited partnerships, limited liability partnerships, and S corporations.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise causes chemical changes in the brain that may help boost feelings of calmness, happiness and focus.
Este documento discute las ventajas y desventajas de usar Prezi en comparación con PowerPoint. Algunas ventajas son que Prezi permite mayor versatilidad e ingenio en las presentaciones debido a mejoras tecnológicas, y también fomenta más creatividad y dinamismo. Una ventaja adicional es que la versión básica de Prezi es gratuita. Una desventaja es que siempre se necesita estar conectado a Internet para usar Prezi. Otra desventaja es que se requiere práctica para dominar bien el uso del
Este documento explica qué es la seguridad informática y contra qué amenazas debemos protegernos, incluyendo virus, troyanos, spyware y phishing. También describe diferentes técnicas de seguridad activa y pasiva, así como programas como antivirus, firewalls y antispam que podemos usar para detener software malicioso.
O documento discute o sistema cardiovascular, incluindo sua estrutura e funções. Ele explica que o sistema consiste no sangue, coração e vasos sanguíneos, e descreve a circulação pulmonar e sistêmica. Também lista distúrbios como hipertensão, aneurisma, AVC e infarto do miocárdio.
There are three main levels of film distributors: local independent distributors, major Hollywood studios, and British distributors. British distributors like Verve Pictures focus on distributing small, low-budget independent films to UK audiences. While Hollywood studios distribute big-budget blockbusters globally, British films typically have smaller audiences and budgets but can still be high quality. The document's film was distributed domestically in the UK by Candi Media Productions, a British distributor more willing to take on the risk of an independent film without stars.
How did you attract/address your audience?medwards-8
The document discusses how films attract and address audiences through various pleasures, including narrative, thematic, representational, style/aesthetic, and genre pleasures. It provides examples of each type of pleasure, such as using an enigma or cliffhanger in the narrative to intrigue audiences, addressing common themes like death or betrayal, and representing relatable locations, ages, or characters for identification. Stylistic elements like cinematography, costumes, and sets can also attract audiences interested in aesthetic qualities. Familiar conventions of different genres likewise appeal to audiences.
The document discusses key concepts in research methods and statistics. It provides definitions and explanations of terms like variables, hypotheses, reliability, validity, experimental research, measures of central tendency and variability, levels of measurement, and the scientific method. The document is a study guide or review of important foundational concepts for conducting quantitative research.
El documento describe el uso de tintes naturales en Mesoamérica desde la época prehispánica. Los mayas utilizaron más de 30 colores en sus murales, incluyendo azules y verdes producidos a partir de arcilla y el tinte azul extraído de la planta índigo. Los tintes rojos, amarillos y negros también se obtuvieron de plantas. Estos colores se usaron para teñir textiles, decorar vasijas y códices, y en rituales. El anil fue una importante fuente de tinte usada por
Este documento describe los diferentes componentes de la pelvis, incluyendo la pelvis falsa y verdadera, y sus limites y características. También describe los diferentes diámetros y planos de la pelvis, así como las articulaciones y formas de la pelvis. Finalmente, explica cómo medir el estrecho superior de la pelvis a través de técnicas radiográficas y examen vaginal.
Los tres grados del conocimiento según Kant son:
1. Opinión: Es el grado más bajo, en el que se tiene algo por verdadero sabiendo que es insuficiente tanto subjetiva como objetivamente.
2. Creencia: Es cuando la verdad es subjetivamente suficiente para el sujeto, aunque no objetivamente. Se basa en la convicción personal pero no en la certeza.
3. Saber: Es el grado más alto, en el que se tiene algo por verdadero de manera suficiente tanto subjetiva como objetivamente. Implica convicción personal y la posibil
This document discusses several aspects of cultural globalization:
1. It presents three different views on the impact of globalization on cultural diversity - that it has increased cultural awareness but also eroded some local cultures.
2. It explores the role of global media, especially American media, in spreading culture worldwide and some criticisms of this.
3. It gives examples of localized cultures that have emerged in the modern world, such as Bollywood and how music has spread between countries.
4. It addresses different views on the impact of consumerism and uses China as a case study. The document instructs the reader to research these topics and issues in more depth.
Replacement window quotes require getting guarantees for craftsmanship and a copy of the agreement to ensure agreement on value. Get any guarantees for craftsmanship in writing as well as a duplicate of the agreement to ensure the homeowner and contractor both understand what is being provided at what cost.
1. Carolyn spends $2.50 for a hamburger at a restaurant. Which.docxjackiewalcutt
1. Carolyn spends $2.50 for a hamburger at a restaurant. Which of the following would be included in the gross domestic product?
A) The $2.50 Carolyn spends for the hamburger
B) The price the restaurant paid for the meat in the hamburger
C) The price the restaurant paid for the bun
D) all of the above
E) none of the above
2. Most goods and services included in the U.S. gross domestic product are bought by
A) businesses in the United States
B) state, local, and federal governments in the United States
C) people and businesses in other nations
D) consumers in the United states
E) none of the above
3. Which of the following makes an adjustment for both inflation and population change?
A) the consumer price index
B) the unemployment rate
C) real GDP per capita
D) final goods and services
E) all of the above
4. A nation’s standard of living will rise if
A) GDP and population increase at the same rate
B) real GDP per capita increases
C) population increases more than GDP
D) production and consumption decrease
E) all of the above
5. Productivity is
A) a measure of the total amount of goods manufactured.
B) a measure of how much output is produced per unit of input.
C) an unimportant statistic commonly ignored by economists.
D) an important measure of how the U.S. economy is doing.
E) B and D.
6. A nation’s productivity is directly affected by
A) the education of its labor force.
B) the amount of physical capital used.
C) the level of innovation used.
D) all of the above
E) none of the above
7. A farmer produces wheat and sells it for $.50. A miller buys the wheat, grinds it into flour, and sells the flour for $1.00. A baker buys the flour, produces a loaf of bread, and sells it to a consumer for $2.00. The amount added to gross domestic product in this example is
A) 50 cents
B) $1.00
C) $2.00
D) $3.50
E) none of the above
8. In the U.S. economy, the total value of goods and services produced per year is measured by
A) the gross domestic product.
B) the consumer price index.
C) the productivity of labor.
D) the Dow Jones Industrial Average.
E) none of the above
9. Which of the following best summarizes the key elements used to calculate the gross domestic product (GDP) of the United States using the expenditure approach?
A) business inventories, net imports, balance of payments
B) disposable income, consumer spending, housing starts
C) unemployment, factory wages, personal consumption, personal income
D) consumer spending, business investment, government spending, net exports
E) none of the above
10. A recession is said to occur when real gross domestic product (GDP) declines for a period of at least
A) two days
B) two weeks
C) two months
D) two quarters
E) two years
11. The consumer price index (CPI) is used to measure
A) inflation.
B) productivity.
C) gross domestic product.
D) structural unemployment.
E) all of the above
12. Which of the following best describes the difference between GDP and real GDP?
A) unlike GDP, real GDP measures only the val ...
Problem Set 1 Part I.Multiple-choice questions 1. The.docxwkyra78
Problem Set 1
Part I.Multiple-choice questions
1. The flow-of-product and earnings or cost approaches to GDP:
a. measure two different aspects of GDP and are therefore unrelated to each
other.
b. are two different ways of measuring the same thing.
c. should both arrive at the same number if GDP is measured in real terms,
but not if GDP is measured nominally.
d. have nothing to do with the circular-flow diagram.
e. none of the above.
2. If nominal GDP was $360 (billion) in 1992 and if the price level rose by 20
percent from 1990 to 1992, then the 1992 GDP, measured in 1990 prices, was (in
billions):
a. $300.
b. $320.
c. $340.
d. $360.
e. $432.
3. What is the consumer price index (CPI) calculating?
a. The CPI is a measure of the average change over time in prices paid by
urban consumers for a market basket of consumer goods and services.
b. The CPI is a price index that included the prices of all goods and services
produced in the country (consumption, investment, government purchases,
and net exports).
c. The CPI measures the level of prices at the wholesale or producer stage. It
includes the prices of foods, manufactured product, and mining products.
d. The CPI is equally weighted average of food, housing, and gas prices.
e. None of the above.
4. The nonaccelerating inflationary rate of unemployment (NAIRU) is the rate at
which:
a. upward and downward forces on price and wage inflation are in balance.
b. inflation is stable.
c. the economy has the lowest level of unemployment that can be maintained
without upward pressure on inflation.
d. all of the above.
e. choices b. and c. only.
5. The Phillips curve shows the relationship between:
a. cost of producing a good and its selling price.
b. inflation and unemployment.
c. inflation and exports.
d. unemployment and GDP.
e. none of the above.
6. According to Okun’s Law, suppose potential GDP rose by 9 percent between
2005 and 2008 but actual GDP did not change, then unemployment would climb
from 5.8 percent in 2005 to_____ in 2008:
a. 6.1 percent.
b. 10.3 percent.
c. 11.2 percent.
d. 8.8 percent.
e. 9.7 percent.
7. Which of the following is NOT considered as the goals of macroeconomics for a
typical modern economy?
a. High levels and rapid growth of output and consumption.
b. Low unemployment rate, with an ample supply of good jobs.
c. Price-level stability (or low inflation).
d. More exports than imports.
8. Which of the following is NOT true about macroeconomic measurements?
a. GDP = C + I + G + X
b. GDP = National income + Depreciation.
c. GDP = National income – Depreciation.
d. Disposable income = GDP – Taxes – Net business saving – Depreciation
+ Transfer payments.
9. Which of the following is NOT true abou ...
ECON 301 Intermediate MacroSpring 2019 Problem Set #1Du.docxtidwellveronique
ECON 301: Intermediate Macro
Spring 2019 Problem Set #1
Due: Monday, April 22, 10:30 AM
Directions: Put the names of up to 3 group members at the top of this page.
Please clearly mark each of your answers to the multiple choice questions
in capital letters in the spaces provided below. Please mark your solutions
(preferably typed) to each of the short answer questions on separate sheets
of paper (with clean edges if using notebook paper) and staple or paper
clip your solutions to the multiple choice answer sheet. Hand it in (one per
group) on or before the due date during class time.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
SECTION 1: MULTIPLE CHOICE QUESTIONS
1. Based on your understanding of the aggregate expenditure model, we know with certainty
that an equal and simultaneous increase in G and T will cause:
(a) an increase in output
(b) no change in output
(c) a reduction in output
(d) an increase in investment
(e) a decrease in investment
For the following two questions, suppose an economy produces only milk and butter. As-
sume that all production is consumed in each year, and that price and quantity data are given
in the tables below.
Year 1
Good Quantity Price
Milk 500 $2
Butter 2000 $1
Year 2
Good Quantity Price
Milk 900 $3
Butter 3000 $2
2. (Refer to the above tables) Between Year 1 and Year 2, real GDP (based on Year 1 as a base
year) grew by
(a) 58.18%
(b) 158.18%
(c) 160%
(d) 60%
(e) 260%
3. (Refer to the above tables) Between Year 1 and Year 2, the GDP deflator (based on Year 1
as a base year) rose
(a) 81.25%
(b) 90%
(c) 190%
(d) 83.33
(e) 183.33%
ECON 301: Intermediate Macro Problem Set #1 1
4. Which of the following generally occurs when a central bank pursues expansionary monetary
policy?
(a) the central bank purchases bonds and the interest rate increases
(b) the central bank purchases bonds and the interest rate decreases
(c) the central bank sells bonds and the interest rate increases
(d) the central bank sells bonds and the interest rate decreases
(e) an increase in the reserve requirement ratio
5. The marginal propensity to consume represents
(a) the level of consumption that occurs if disposable income is zero.
(b) the ratio of total consumption to disposable income.
(c) total income minus total taxes.
(d) the change in output caused by a one-unit change in autonomous demand.
(e) the change in consumption caused by a one-unit change in disposable income.
6. Suppose a one-year discount bond offers to pay $1000 in one year and currently has a 15%
interest rate. Given this information, we know that the bond’s price must be approximately:
(a) $870
(b) $1150
(c) $850
(d) $950
(e) $985
7. Equilibrium in the goods market requires that
(a) production equals income.
(b) production equals demand.
(c) consumption equals saving.
(d) consumption equals income.
(e) government spending equals taxes minus transfers.
8. The LM curve shifts down when which of the following occurs.
Sample Macro QuestionsMultiple Choice (Select the best option av.docxanhlodge
Sample Macro Questions
Multiple Choice (Select the best option available.)
1..
In the factor market, households
(a)
sell resources.
(b)
buy resources.
(c)
are neither buyers nor sellers of resources.
(d)
are both buyers and sellers of resources.
2.
GDP does not include
(a)
business investment.
(b)
overseas production of U.S. subsidiaries.
(c)
net exports.
(d)
consumption expenditures.
3.
Official unemployment rates may underestimate the true rate of unemployment because the
official rate
(a)
includes those workers who only work part time.
(b)
may include some individuals who are not actually in the labor force.
(c)
does not include individuals receiving any type of unemployment compensation.
(d)
fails to include discouraged workers.
4.
If the U.S. economy enters a recessionary phase, the
(a)
economy experiences full employment.
(b)
unemployment rate will increase.
(c)
entire population will be unemployed.
(d)
entire population will be partially unemployed.
5.
The circular flow diagram shows
(a)
goods, services, and money payments flowing in the same direction.
(b)
goods and money payments flowing in one direction and services flowing in the opposite direction.
(c)
goods and services flowing in one direction and money payments in the other direction.
(d)
goods flowing in one direction and services and money payments flowing in the other direction.
6.
GDP measures
(a)
the total value of labor used in the economy.
(b)
the total market value of final goods and services produced within a nation’s borders.
(c)
the total income received by residents of a nation.
(d)
the total worth of all goods consumed within the borders of a nation.
7.
A price index shows
(a)
the current cost of a basket of goods.
(b)
the relative price of necessities.
(c)
the price of goods in the future.
(d)
the cost of today’s goods expressed in terms of the cost of goods in a base year.
8. A public good is:
(a) a good or service for which it is relatively easy to exclude nonpaying customers from consumption.
(b) a good or service which is consumed by both the paying and nonpaying customers.
(c) any good or service which is produced by the government.
(d) a good or service which is consumed by private individuals and financed by private contributions.
9.
The sum of all planned expenditures for the entire economy at each possible price level is
(a)
aggregate supply.
(b)
effective demand.
(c)
aggregate demand.
(d)
actual expenditures by consumers.
10.
Suppose the total value of all assets in the United States is $10 trillion. In 2006, the total value of all final services produced in the United States was $100 billion, the total value of all final goods produced in the United States was $300 billion, and the total value of all final goods and services produced by American firms in other countries was $100 billion. In this situation, gross domestic product for 2006 was
(a)
$600 billion.
(b)
$500 billion.
(c)
$400 billion.
(d).
Test Bank for Macroeconomics 7th edition by Olivier BlanchardBeste Ergen
This document provides sample questions and answers from the test bank for the 7th edition of the macroeconomics textbook by Olivier Blanchard. It offers the test bank for sale and provides contact information for interested buyers. Having access to a test bank can help students better understand course material and perform well on exams, as many professors use questions directly from the test bank.
ECN 282 Final Exam Spring 20161.The marginal propensity.docxSALU18
ECN 282
Final Exam Spring 2016
1.
The marginal propensity to consume is equal to:
A)
the proportion of consumer spending as a function of aggregate disposable income.
B)
the change in saving divided by the change in aggregate disposable income.
C)
the ratio of the change in consumer spending to the change in aggregate disposable income.
D)
the change in saving divided by the change in consumer spending.
2.
The MPS plus the MPC must equal:
A)
zero.
B)
one.
C)
income.
D)
saving.
3.
If the MPS = 0.1, then the value of the multiplier equals:
A)
1.
B)
5.
C)
9.
D)
10.
4.
If the multiplier equals 4, then the marginal propensity to save must be equal to:
A)
1/4.
B)
1/2.
C)
3/4.
D)
the marginal propensity to consume.
5.
Suppose that the marginal propensity to consume is 0.8, and investment spending increases by $100 billion. The increase in aggregate demand is:
A)
$100 billion, the same amount as investment spending.
B)
$125 billion, composed of $100 billion in investment spending and $25 billion in consumption.
C)
$80 billion, composed of $100 billion in investment spending and a decrease in consumption of $20 billion.
D)
$500 billion, composed of $100 billion in investment spending and $400 billion in consumption.
6.
The marginal propensity to save is:
A)
savings divided by aggregate income.
B)
the fraction of an additional dollar of disposable income that is saved.
C)
1 + MPC.
D)
savings divided by aggregate income or 1 + MPC.
7.
If disposable income increases by $5 billion and consumer spending increases by $4 billion, the marginal propensity to consume is equal to:
A)
20.
B)
0.8.
C)
1.25.
D)
9.
8.
The spending multiplier is equal to:
A)
MPC / MPS.
B)
1 / (1 – MPS).
C)
MPC + MPS.
D)
1 / (1 – MPC).
9.
Suppose that a financial crisis decreases investment spending by $100 billion and the marginal propensity to consume is 0.8. Assuming no taxes and no trade, by how much will real GDP change?
A)
$500 billion decrease
B)
$200 billion decrease
C)
$800 billion decrease
D)
$400 billion increase
10.
Suppose the government increases spending by $100 billion as a stimulus package. If the MPC is 0.6, then equilibrium income will:
A)
decrease by $250 billion.
B)
increase by $250 billion.
C)
increase by $600 billion.
D)
decrease by $400 billion.
11.
According to the National Bureau of Economic Research, the U.S. economy is going through a severe recession. Most households are trying to save more of their income than before. This increase in private spending will lead to:
A)
an increase in aggregate income, as more saving means more funds for business investment.
B)
a fall in aggregate income, as more saving means people will spend less.
C)
no change in aggregate income, because there is no saving multiplier.
D)
an increase in aggregate income, as an increase in saving will make people wealthier.
12.
A key statistic to measure economic growth is:
A)
the size of the ...
Common Final Exam ECON 201 OL2 Spring 2014 I. MULTIP.docxmonicafrancis71118
Common Final Exam ECON 201 OL2 Spring 2014
I. MULTIPLE CHOICE (40 questions 2 points each). Choose the one alternative that best completes
the statement or answers the question.
1) Business cycles are 1) _______
A) used to describe fluctuations in GDP.
B) a description of the time required to bring a new product to market.
C) the transfer of executives between firms.
D) movements in stock prices.
2) If real GDP was 100 in 2011 and 104.4 in 2012, the growth rate of real GDP between 2011 and 2012 was
2) _______
A) 2.2 percent.B) 4.4 percent. C) 100 percent. D) 102.2 percent.
3) When considering imports and exports, economists include the ________ as a component of the GDP.
3) _______
A) net exports B) total imports C) gross exports D) total exports
4) Which prices are used to measure goods and services in calculating the nominal GDP? 4) _______
A) projected prices B) average prices
C) current prices D) past years prices
5) Which of the following is NOT an example of private investment expenditure? 5) _______
A) using credit cards to purchase durable and nondurable goods
B) new houses built during the year
C) increases in inventories on goods produced during the year
D) new plants and equipment added during the year
6) Which of the following is NOT a component of gross domestic product? 6) _______
A) net exports
B) purchases by consumers of finished goods
C) purchases by consumers of used goods
D) government purchases
7) If Cassie's Coffee House purchases 33 cents worth of ingredients and spends 36 cents on wages per cup of
coffee to produce an 89 cent cup of coffee, then Cassie's Coffee House's contribution to GDP is ________ per
cup of coffee. 7) _______
A) 20 cents B) 33 cents C) 36 cents D) 56 cents
8) Economists define the labor force to include 8) _______
A) people who are working.
B) only people who are working full time.
C) people who are not working but are actively looking for a job, and people who are working.
D) all individuals of working age, regardless of whether they are working or looking for a job.
9) If Sam does not have a job and is not looking for work, he is considered 9) _______
jose.king
Highlight
jose.king
Highlight
jose.king
Highlight
jose.king
Highlight
A) not in the labor force. B) unemployed.
C) unemployed and in the labor force. D) unemployed and not in the labor force.
10) Suppose that the CPI in Egypt was 111 in 2011 and 122 in 2012. The inflation rate between those two years
was approximately 10) ______
A) 4.8 percent.B) 5.5 percent. C) 9.9 percent. D) 11 percent.
11) In June 2012, the U.S. labor force consisted of 142,415,000 employed and 12,749,000 unemployed. The
U.S. unemployment rate for June 2012 was about 11) ______
A) 7.4 percent.B) 8.2 percent. C) 9.0 percent. D) 11.2 percent.
12) Juanita quit her job to move to Santa Fe to be closer to her family. She is actively looking for a new job in
Santa Fe. Juanita is con.
PAGE 2Accounting Midterm ExamBe sure to show your w.docxalfred4lewis58146
PAGE
2
Accounting
Midterm Exam
Be sure to show your work clearly for partial credit.
The point breakdown is as follows:
Multiple choice (30 @ 2 points)
60.0 points
Problem 1
15.0 points
Problem 2
10.0 points
Problem 3
15.0 points
Total
100.0 points
Name:_____________________________
I have complied with the University’s honor code, which requires that I do my own work and not give or receive assistance on this examination. Revealing information to (or soliciting from) students is a violation of the honor code.
Signed: _____________________________
MULTIPLE CHOICE
Select the best answer to each question by circling your answer.
1. Midwest Motors manufactures automobiles. Which of the following would not be considered direct materials by the company?
A)
Sheet metal used in automobile’s body.
B)
Tires.
C)
Interior leather.
D)
CD Player.
E)
Wheel lubricant.
2.
Which of the following is a product cost?
A)
Glass in an automobile
B)
Advertising
C)
The salary of the vice president
D)
Insurance for factory building.
3.
The corporate controller's salary would be considered a(n):
A)
manufacturing cost.
B)
product cost.
C)
administrative cost.
D)
selling expense.
4.
Manufacturing overhead:
A)
can be either a variable cost or a fixed cost.
B)
includes the costs of advertising.
C)
includes all factory labor costs.
D)
includes all fixed costs.
5.
Which one of the following costs should NOT be considered an indirect cost of serving a particular customer at a Dairy Queen fast food outlet?
A)
the cost of the hamburger patty in the burger they ordered.
B)
the wages of the employee who takes the customer's order.
C)
the cost of heating and lighting the kitchen.
D)
the salary of the outlet's manager.
6.
Which of the following statements represents a similarity between financial and managerial accounting?
A)
Both are useful in providing information for external users.
B)
Both are governed by GAAP.
C)
Both draw upon an organization’s accounting system.
D)
Both rely heavily on published financial statements.
7.
The accounting records of Hill Corporation revealed the following selected costs: Sales commissions, $40,000; plant supervision, $94,000; and administrative expenses, $185,000. Hill's period costs total:
A)
$40,000.
B)
$94,000.
C)
$185,000.
D)
$225,000.
E)
$319,000.
8.
An employee accidentally overstated the year's advertising expense by $50,000. Which of the following correctly depicts the effect of this error?
A)
Cost of goods manufactured will be overstated by $50,000.
B)
Cost of goods sold will be overstated by $50,000.
C)
Both cost of goods manufactured and cost of goods sold will be overstated by $50,000.
D)
None of the above.
9.
If there is a change in the level of the number of units produced:
A)
fixed costs per unit will be the same and variable costs per unit will change.
B)
fixed and variable costs per unit will change.
C)
fixed and va.
ACCT 221 Final ExamPart I 20 Multiple choice questions @ 2.5 .docxannetnash8266
ACCT 221 Final Exam
Part I: 20 Multiple choice questions @ 2.5 points each = 50 points
1. Jackson Company is a publicly held corporation whose $1 par value stock is actively traded at $75 per share. The company issued 3,000 shares of stock to acquire land recently advertised at $200,000. When recording this transaction, Barton Company will –
A) debit Land for $200,000.
B) debit Land for $225,000.
C) credit Common Stock for $195,000.
D) credit Paid-In Capital in Excess of Par for $196,000
.
2. Victory Corporation sold 400 shares of treasury stock for $45 per share. The cost for the shares was $35. The entry to record the sale will include a
A) credit to Gain on Sale of Treasury Stock for $14,000.
B) debit to Paid-in Capital in Excess of Par for $4,000.
C) credit to Treasury Stock for $18,000.
D) credit to Paid-in Capital from Treasury Stock for $4,000.
3. Which of the following show the proper effect of a stock split and a stock dividend?
4. Dabney, Inc., has 5,000 shares of 5%, $100 par value, noncumulative preferred stock and 40,000 shares of $1 par value common stock outstanding at December 31, 2014. There were no dividends declared in 2013. The board of directors declares and pays a $60,000 dividend in 2014. What is the amount of dividends received by the common stockholders in 2014?
A) $0
B) $25,000
C) $10,000
D) $35,000
5. A $600,000 bond was retired at 97 when the carrying value of the bond was $590,000. The entry to record the retirement would include a
A) gain on bond redemption of $10,000.
B) gain on bond redemption of $8,000.
C) loss on bond redemption of $10,000.
D) loss on bond redemption of $8,000.
6. The following data are available for Two-off Company.
Increase in accounts payable
$120,000
Increase in bonds payable
300,000
Sale of investments
150,000
Issuance of common stock
160,000
Payment of cash dividends
90,000
Net cash provided by financing activities is:
A) $180,000.
B) $360,000.
C) $370,000.
D) $420,000.
7. The net income reported on the income statement for the current year was $220,000. Depreciation recorded on plant assets was $35,000. Accounts receivable and inventories increased by $2,000 and $8,000, respectively. Prepaid expenses and accounts payable decreased by $2,000 and $12,000 respectively. How much cash was provided by operating activities?
A) $200,000
B) $235,000
C) $220,000
D) $255,000
8. If a company reports a net loss, it
A) will not be able to pay cash dividends.
B) will not be able to get a loan.
C) may still have a net increase in cash.
D) will not be able to make capital expenditures.
9. A creditor would be most interested in evaluating which of the following ratios?
A) Asset turnover
B) Earnings per share
C) Times interest earned
D) Payout ratio
10. Lionel Company has beginning work in process inventory of $220,000 and total manufacturing costs of $900,000. If ending work in process is $210,000 what is the cost of goods manufacture.
The second document presents revenue and expenditure figures from the Union Budget of India for 2006-07 including tax revenue, capital receipts, non-plan expenditure, and plan expenditure. It asks to calculate:
1) Fiscal Deficit, Revenue Deficit, and Primary Deficit
2) Comment on the significance of these deficits
3) Impact on money supply if the government monetizes 10
ECON 1102, Test 2 (060216) 1
ECON 1102, Section 711, SS1 2016
Do any 40 of the 50 questions: two and one-half points each
Answer questions 1 through 4 based on the graph below.
1. The initial demand curve is D1. There are no rent ceilings or floors. The initial equilibrium monthly rent is
_____. (Put your answer on the answer sheet)
2. The demand curve shifts leftward from D1 to D0 so that D0 is the relevant demand curve. There are no
rent controls. In the short run, the decrease in demand results in
A) lower rents and a decrease in the equilibrium quantity.
B) higher rents and a decrease in the equilibrium quantity.
C) lower rents and an increase in the equilibrium quantity.
D) higher rents and an increase in the equilibrium quantity.
3. The demand curve shifts rightward from D0 to D1 so that D1 is the relevant demand curve. Suppose the
government imposes a rent ceiling of $300 per month. In the short run there will be
A) a shortage and a decrease in search costs. B) a shortage and an increase in search costs.
C) a surplus and an increase in search costs. D) a surplus and a decrease in search costs.
4. The demand curve shifts rightward from D0 to D1 so that D1 is the relevant demand curve. Suppose the
government imposes a rent ceiling of $500 per month. In the short run there will be
A) a surplus of apartments. B) a shortage of 200,000 apartments.
C) a shortage of 300,000 apartments. D) neither a shortage nor a surplus of apartments.
5 A price floor
A) always results in a surplus.
B) always results in a shortage.
C) results in a surplus if the floor price is greater than the equilibrium price.
D) results in a shortage if the floor price is greater than the equilibrium price.
ECON 1102, Test 2 (060216) 2
Answer questions 6 through 8 based on the table below.
Wage rate (dollars
per hour)
Labor supplied
(millions of workers)
Labor demanded
(millions of workers)
12 9 3
11 8 4
10 7 5
9 6 6
8 5 7
6. What is the equilibrium wage rate in an unregulated market? ____ (Put your answer on the answer sheet)
7. If the minimum wage is set at $12 per hour, the number of unemployed workers will be ____
8. If the market is in equilibrium today, and tomorrow a minimum wage is set at $11 per hour, the number of workers
who will lose their jobs is _____
9. In general, how a sales tax is divided between buyers and sellers is determined by
A) the elasticities of supply and demand. C) who the law says must pay the tax.
B) the government’s choice of whom to tax. D) the revenue needs of government.
10. A tariff
A) is a tax imposed on imported goods.
B) is a tax imposed on exported goods.
C) encourages worldwide specialization according to the principle of comparative advantage.
D) has no effect on prices paid by domestic consumers even though it increases the revenue collected by
domestic producers.
11. ...
Part I 20 Multiple choice questions @ 2.5 points each = 50 points.docxbridgelandying
Part I: 20 Multiple choice questions @ 2.5 points each = 50 points
1. Jackson Company is a publicly held corporation whose $1 par value stock is actively traded at $75 per share. The company issued 3,000 shares of stock to acquire land recently advertised at $200,000. When recording this transaction, Barton Company will –
A) debit Land for $200,000.
B) debit Land for $225,000.
C) credit Common Stock for $195,000.
D) credit Paid-In Capital in Excess of Par for $196,000
.
2. Victory Corporation sold 400 shares of treasury stock for $45 per share. The cost for the shares was $35. The entry to record the sale will include a
A) credit to Gain on Sale of Treasury Stock for $14,000.
B) debit to Paid-in Capital in Excess of Par for $4,000.
C) credit to Treasury Stock for $18,000.
D) credit to Paid-in Capital from Treasury Stock for $4,000.
3. Which of the following show the proper effect of a stock split and a stock dividend?
4. Dabney, Inc., has 5,000 shares of 5%, $100 par value, noncumulative preferred stock and 40,000 shares of $1 par value common stock outstanding at December 31, 2014. There were no dividends declared in 2013. The board of directors declares and pays a $60,000 dividend in 2014. What is the amount of dividends received by the common stockholders in 2014?
A) $0
B) $25,000
C) $10,000
D) $35,000
5. A $600,000 bond was retired at 97 when the carrying value of the bond was $590,000. The entry to record the retirement would include a
A) gain on bond redemption of $10,000.
B) gain on bond redemption of $8,000.
C) loss on bond redemption of $10,000.
D) loss on bond redemption of $8,000.
6. The following data are available for Two-off Company.
Increase in accounts payable
$120,000
Increase in bonds payable
300,000
Sale of investments
150,000
Issuance of common stock
160,000
Payment of cash dividends
90,000
Net cash provided by financing activities is:
A) $180,000.
B) $360,000.
C) $370,000.
D) $420,000.
7. The net income reported on the income statement for the current year was $220,000. Depreciation recorded on plant assets was $35,000. Accounts receivable and inventories increased by $2,000 and $8,000, respectively. Prepaid expenses and accounts payable decreased by $2,000 and $12,000 respectively. How much cash was provided by operating activities?
A) $200,000
B) $235,000
C) $220,000
D) $255,000
8. If a company reports a net loss, it
A) will not be able to pay cash dividends.
B) will not be able to get a loan.
C) may still have a net increase in cash.
D) will not be able to make capital expenditures.
9. A creditor would be most interested in evaluating which of the following ratios?
A) Asset turnover
B) Earnings per share
C) Times interest earned
D) Payout ratio
10. Lionel Company has beginning work in process inventory of $220,000 and total manufacturing costs of $900,000. If ending work in process is $210,000 what is the cost of goods manufactured?
A) $700,000.
B) $9.
The document discusses Gross Domestic Product (GDP) and how it is used to measure a nation's income. GDP is the total value of all goods and services produced within a country in a given year. It has four components: consumption, investment, government purchases, and net exports. While GDP indicates economic size, it does not fully capture a society's well-being as it does not account for environmental quality, leisure time, or income distribution. However, GDP remains a key indicator since higher GDP enables countries to invest in areas like education, healthcare, and infrastructure that do contribute to well-being.
Measuring a nations Income
GDP
Real GDP
Nominal GDP
Circular Flow Diagram
Components of GDP
The GDP Deflator
Why Do We Care About GDP?
GDP Does Not Value:
J)o aUtuxoa- q,rr{fAsl4 #S-CHAPTER 12 Spending by lndivi.docxpriestmanmable
'J)o aUtuxoa-/ q,rr"*{fAsl4 #S-
CHAPTER 12 Spending by lndividuals, Firms, and Governments on Real Goods and Services 359 f-,LI
Given the following variables in the open econ-
omy aggregate expenditure model, autonomous
consumption (Co) * 2A0, autonomous invest-
ment (16) = 200, government spending (Gd = 100,
export spending (Xo) = 100, autonomous import
spending (Mil = 100, taxes (Tp) = 0, marginal pro.
penstty to consume (cJ = 0.8, marginal propen-
sity to invest (iJ = 0"1, and marginal propensity
to import @nt) = 0-15,
a Calculate the equilibrium level of income for the
open economy aggregate expenditure model.
b. If there is an increase in autonomous import
expenditure from 100 to 200 resulting from arr
increase in the currency exchange rate, calcu-
late the new equilibrium level of income and
the value of the multiplier.
c. Compared with the original equilibrium in part
a, if the goyernrnent decides to impose taxes
{Tp) of 100, ca}culate the new equilibrium level
of income.
ffi
Application Questions
1. [Jse the aggregate expenditure model developed in
this chapter to explain the following statements:
a Coming amid continued turmoil in the finan-
cial and credit markets, the report sent stocks
lower, with the Dow Jones Industrial Average
fatling 146.70 points F?idayto close at 11,899.69.
b. Administration offlcials said they were confi-
dent conditions would improve as tax rebates
that are part of the recent $152 billion economic-
stimulus package begin to reach consumers.
c. The Fed is expected to cut interest rates again
to prop up the economy.
2. Redraw Figures l2.11aand 12.11b to illustrate the
effects on the resulting equilitrrium level of income
trom ea,ch of the following changes:
a A greater sensitivity of interest-related con-
sumption and investment expenditure to
changes in the interest rate.
b. A larger multiplier in the aggregate expenditure
model.
Hint: Remember that consumption has an auton-
omous component and is a firnction of dispos-
able income, Iz4, where Ya= Y - Tp.
the consumption ion is given by C = 800 + 0.8
{Y - T1), that nt (1) equals 200,
and that government (G) and taxes (7p)
or
export spending.
a. Calculate the equilibrium lncome.
b. If government purchases crease by 100
(all else held constant), the new equi-
librium level of ue of the
multiplier.
c. Compared with
government nditure (G) and Qp)
so that the government budget
remalns anced, does the equilibrium level
remain unchanged? Explain your
"r'';+
3. Go to the Web site of the Conference Board
(www.conference-board.org) and find the latest
release of the Consumer Confidence Index. I{ow
has the index changed since its last release?
What is the expected impact of this change on
the economy?
4. A number of articles in the Watl Street Jou,mraL
reported that the strong dollar, combined with
the recession of 2001, fbrced many U.S. manu-
facturers to develop better methods to produce
and sell their products. Usc the discussion of the
nlacr ...
Get HI5003 Economics for Business Holmes T2 2022 final assessment help with diploma assignment help at an affordable price with 100% plagiarism-free. We provide best assignment writing services in Australia.
Does the us still make anything gdp to distAdam Jones
GDP measures the market value of all final goods and services produced within a country in a given period. It includes consumption (C), investment (I), government spending (G), and net exports (NX). While GDP indicates total output, real GDP corrects for inflation to measure changes in the quantity of output produced. Per capita GDP further adjusts for population size to serve as a measure of a country's standard of living.
This document contains a multi-part exam on corporate finance concepts. Part I contains 25 multiple choice questions covering topics like agency costs, net present value calculations, portfolio risk and return, and option valuation. Part II contains a problem asking to calculate monthly payments on auto financing and the required size of a cash back offer. Part III contains two longer problems, the first asking to calculate betas and the security market line given a two-asset portfolio, and the second asking how unexpected inflation would affect the prices of a leveraged firm's debt and equity.
National Income Accounting - Book VersionMark Anthony
This document discusses measuring GDP using the expenditure and income approaches. It defines GDP as the total market value of final goods and services produced within a country in a given period. The four main categories of expenditure are personal consumption, gross private investment, government spending, and net exports. Using the income approach, GDP is measured as the sum of compensation of employees, business profits, interest, and other income. The document also discusses real GDP, inflation, and limitations of GDP as a welfare measure.
Similar to The inverse demand curve for product x is given by px 25 0-1_ (20)
The inverse demand curve for product x is given by px 25 0-1_
1. ECON 1200: Principles of Economics: Assignment 1
Total Marks: 50
Please answer all of the following questions. Numbers in the parentheses indicate weight assigned to the
questions. The assignment is due by Tuesday February 5, 2008, before the class. GOOD LUCK
Section I
Question 1 (10):
Section I: Answer ALL questions of this section.
i. GDP is equal to:
A) C + Ig + G + X n. C) C + In + G + X n.
B) C + Ig + G - X n. D) C + In + G - X n.
ii. If output increases by 2 percent and population growth is 3 percent, per capita
output:
A) falls by 5 percent.
B) falls by 1 percent.
C) grows by 1 percent.
D) grows by 5 percent.
iii. Real gross domestic product is best defined as:
A) the market value of goods and services produced in an economy.
B) all goods and services produced in an economy stated in the prices of a given
year.
C) the market value of all final goods and services produced in an economy stated
in the prices of a given year.
D) the market value of goods and services produced in an economy stated in
current-year prices.
iv. Suppose a country's real GDP is $440 billion and its population is 100 million.
Now suppose that both its price level and its population increase by 10 percent.
As a result of these changes, its new level of per capita real GDP will be:
A) $400.
B) $440.
C) $4,000.
D) $4,400.
2. v. Which of the following statements best characterizes the Classical view of
business cycles?
A) Fluctuations in business activity occur in regular and predictable patterns.
B) Fluctuations in business activity are to be expected and should be accepted just
as changes in the seasons are accepted.
C) Expansions and recessions are symptoms of underlying problems and should
be addressed by macroenomic policy.
D) The appropriate macroeconomic policy can eliminate fluctuations in business
activity.
vi. Which of the following statements best characterizes the Keynesian view of
business cycles?
A) Fluctuations in business activity occur in regular and predictable patterns which
cannot be altered.
B) Fluctuations in business activity are to be expected and should be accepted just
as changes in the seasons are accepted.
C) Expansions and contractions of the business cycle are symptoms of underlying
problems and should be dealt with.
D) The appropriate macroeconomic policy can easily eliminate all fluctuations in
business activity.
vii. Which of the following types of unemployment is considered to be the most
controllable through macroeconomic policy?
A) Frictional unemployment.
B) Natural unemployment.
C) Cyclical unemployment.
D) Structural unemployment.
viii. Which of the following people would not be included among the unemployed?
A) A construction worker laid off because of a slowdown in house building.
B) A young mother on welfare because her husband has left her and she must stay
home to tend her children.
C) A recent high school graduate who has quit his first job as a stock clerk in a
grocery store in order to look for a better job.
D) A recent college graduate who has not yet found a job.
ix.The labour force participation rate measures the number of people:
A) in the labour force.
B) in the labour force as a percentage of the total population.
C) in the labour force as a percentage of the total population at least sixteen years
old.
D) who are working as a percentage of the labour force.
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3. x. According to Okun's rule of thumb, an increase in the rate of unemployment
from 6 percent to 8 percent would be expected to cause income in the economy
to:
A) fall by 4 percent.
B) rise by 4 percent.
C) fall by 2 percent.
D) rise by 2 percent.
xi. According to Okun's rule of thumb, if the economy is producing at an annual
rate of $5 trillion, a decrease in the rate of unemployment from 7 percent to 6
percent would be expected to cause income in the economy to:
A) fall by $100 billion.
B) rise by $100 billion.
C) fall by $200 billion.
D) rise by $200 billion
xii. Which of the following statements regarding inflation is true?
A) Inflation is a continual rise in the general price level.
B) Inflation occurs when prices are changing on average.
C) Inflation is a one-time increase in the general price level.
D) Inflation occurs only when all prices are increasing.
xiii. A price index in its base year:
A) is always greater than 100.
B) is always equal to 100.
C) is always less than 100.
D) cannot be determined without knowing the price level in the base year.
xiv. If the CPI in year 2 equals 110 and the CPI in year 3 equals 121, it can be
concluded that consumer prices:
A) rose from year 2 to year 3 by 11.
B) rose from year 2 to year 3 by 11%.
C) rose from year 2 to year 3 by 10%.
D) are the same in year 2 as in the base year.
xv. In 1969, the United States CPI was 37 (1982-84 = 100) and in 1999 it was 166.
From these figures we can conclude that United States prices increased about
__________ percent between 1969 and 1999.
A) 80
B) 125
C) 210
D) 350
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4. xvi. If nominal output increased from $4 trillion to $4.2 trillion and real output
increased from $4 trillion to $4.1 trillion, then prices must have:
A) increased nearly 2.5 percent.
B) decreased nearly 2.5 percent.
C) increased 5 percent.
D) decreased 5 percent.
xvii. Real output is best defined as the total amount of goods and services produced
adjusted for changes in:
A) quality.
B) Inventories.
C) buying patterns.
D) the price level.
xviii. If nominal output is $5.28 trillion and the GDP deflator is 20 percent higher than
in the base year, then real output is:
A) $4.84 trillion.
B) $4.4 trillion.
C) $4 trillion.
D) $3.84 trillion.
xix. The value of intermediate goods is:
A) Included in both GDP and GNP.
B) Included in GDP but not GNP.
C) Included in GNP but not GDP.
D) Excluded from both GDP and GNP.
xx. To move from gross domestic product (GDP) to gross national product (GNP), one must:
A. add depreciation to GDP.
B. subtract depreciation from GDP.
C. subtract net foreign factor income from GDP.
D. add net foreign factor income to GDP.
Answers:
(i) A (vi) C (xi) B (xvi) A
(ii) B (vii) C (xii) A (xvii) D
(iii) C (viii) B (xiii) B (xviii) B
(iv) C (ix) C (xiv) C (xix) D
(v) B (x) A (xv) D (xx) D
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5. Section II
Question 2 (10): Following is a list of national income figures for a given year. All figures are in
billions.
Item $ million
Wages and other labour income 200
Interest 20
Profits 40
Proprietors' income 60
Exports 120
Imports 140
Income taxes 60
Taxes on expenditure less subsidies 20
Consumer expenditure 180
Investment 120
Government expenditures on goods and services 60
Government transfer payments 10
Using the above data, determine GDP by both the expenditure and income methods.
Answers:
Expenditure Method:
Consumer expenditure 180
Investment 120
Government expenditures on goods and services 60
Exports 120
Imports - 140
Total 340
Income Method:
Wages and other labour income 200
Interest 20
Profits 40
Proprietors' income 60
Taxes on expenditure less subsidies 20
Total 340
Question 3 (10): Which of the following are actually included in deriving this year’s GDP?
a. Interest on a Bell Canada bond.
b. A steel firm increases its inventories.
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6. c. The income of a dentist.
d. You sell your old refrigerator to another person.
e. The monthly allowance a college student receives from home.
f. The purchase of 100 shares of Nortel Networks common stock.
g. A two-hour decline in the length of workweek.
h. The expenditure of $800 by a worker for transportation to and from his work.
i. The purchase of an insurance policy.
j. The $40 you save by cleaning your own apartment rather than hiring a cleaning service.
Answers:
a. INCLUDED f. NOT INCLUDED
b. INCLUDED g. NOT INCLUDED
c. INCLUDED h. INCLUDED
d. NOT INCLUDED i. INCLUDED
e. NOT INCLUDED j. NOT INCLUDED
Question 4 (10): Evaluate as accurately as you can how each of the following individuals would
be affected by unanticipated inflation of 10% per year:
i. A pensioned railroad worker
ii. A department store clerk.
iii. A unionized automobile assembly-line worker;
iv. A heavy indebted farmer;
v. A retired business executive whose current income comes from interest on government
bonds.
Answers:
i. Unaffected
ii. Hurt
iii. Unaffected
iv. Benefited
v. Hurt
Question 5 (10): Evaluate the following statements as true or false. Provide explanation if you
state FALSE.
i. Because official price indexes do not account for some improvements in product
quality, official estimates of real GDP overestimate the true increase in real output.
ii. Your visit to the dentist, college tuition, and the new car you buy are all included in
GDP.
iii. Gross domestic product equals the sum of consumption, investment, and government
expenditure.
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7. iv. The four phases of the business cycle are, in order, expansion, peak, recession, and
trough.
v. The unemployment rate is calculated by dividing the number of people without jobs by
the labour force.
vi. If the economy were producing at its potential output, then the unemployment rate
would be less than the target rate of unemployment.
vii. If the price level doubles, so does real output.
viii. Structural unemployment is caused by people quitting a job just long enough to look
for and find another one.
ix. If the economy were producing at its potential output, then the unemployment rate
would be less than the target rate of unemployment.
x. Inflation is a sustained rise in the general price level.
Answers:
i. FALSE
ii. TRUE
iii. FALSE
iv. TRUE
v. FALSE
vi. FALSE
vii. FALSE
viii. FALSE
ix. FALSE
x. TRUE
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8. c. The income of a dentist.
d. You sell your old refrigerator to another person.
e. The monthly allowance a college student receives from home.
f. The purchase of 100 shares of Nortel Networks common stock.
g. A two-hour decline in the length of workweek.
h. The expenditure of $800 by a worker for transportation to and from his work.
i. The purchase of an insurance policy.
j. The $40 you save by cleaning your own apartment rather than hiring a cleaning service.
Answers:
a. INCLUDED f. NOT INCLUDED
b. INCLUDED g. NOT INCLUDED
c. INCLUDED h. INCLUDED
d. NOT INCLUDED i. INCLUDED
e. NOT INCLUDED j. NOT INCLUDED
Question 4 (10): Evaluate as accurately as you can how each of the following individuals would
be affected by unanticipated inflation of 10% per year:
i. A pensioned railroad worker
ii. A department store clerk.
iii. A unionized automobile assembly-line worker;
iv. A heavy indebted farmer;
v. A retired business executive whose current income comes from interest on government
bonds.
Answers:
i. Unaffected
ii. Hurt
iii. Unaffected
iv. Benefited
v. Hurt
Question 5 (10): Evaluate the following statements as true or false. Provide explanation if you
state FALSE.
i. Because official price indexes do not account for some improvements in product
quality, official estimates of real GDP overestimate the true increase in real output.
ii. Your visit to the dentist, college tuition, and the new car you buy are all included in
GDP.
iii. Gross domestic product equals the sum of consumption, investment, and government
expenditure.
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