MACROECONOMICS EXAM 1 REAL TEST AND REAL ANSWERS
MACROECONOMICS EXAM 1 REAL TEST AND REAL ANSWERS ECON2015
Popular in INTRODUCTION TO MACROECONOMICS
Popular in Economcs
This 13 page Study Guide was uploaded by Katie Mulliken on Thursday March 31, 2016. The Study Guide belongs to ECON2015 at University of Georgia taught by JASON RUDBECK in Spring 2016. Since its upload, it has received 6 views. For similar materials see INTRODUCTION TO MACROECONOMICS in Economcs at University of Georgia.
Reviews for MACROECONOMICS EXAM 1 REAL TEST AND REAL ANSWERS
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 03/31/16
Cover Sheet □ Tear this cover sheet from the question packet. You keep this. □ Write your name on the question packet. □ Bubble in your 810 Student ID and Name on your scantron. □ Turn in your question packet and scantron to the correct version pile. I may deduct 5 points from this test if you don’t properly bubble your name or 810, or you you’re your test into the wrong version pile. Your Answers Test Version: _____ 1. _____ 13. _____ 25. _____ 2. _____ 14. _____ 26. _____ 3. _____ 15. _____ 27. _____ 4. _____ 16. _____ 28. _____ 5. _____ 17. _____ 29. _____ 6. _____ 18. _____ 30. _____ 7. _____ 19. _____ 8. _____ 20. _____ 9. _____ 21. _____ 10. _____ 22. _____ 11. _____ 23. _____ 12. _____ 24. _____ You may use this side for scratch paper. Name: ______________________________ Version B Exam #1 Multiple Choice Identify the choice that best completes the statement or answers the question. Figure 25 225 baseballs A 200 175 B 150 125 D 100 75 C 50 25 F 30 60 90 120 150 180 210 240 270 300 bananas ____ 1. Refer to Figure 25 above. The opportunity cost of moving from point A to point C is a. 240 bananas. b. 125 baseballs. c. 75 baseballs. d. 125 baseballs and 240 bananas. ____ 2. Refer to Figure 25 above. A movement from point C to point D could be caused by a. unemployment of capital. b. fewer resources available for production of bananas. c. a decrease in society's preference for bananas. d. All of the above are correct. ____ 3. During the Financial Crisis, Walmart started carrying more brand name products, which are normal goods. Management at Walmart believed that future U.S. incomes would a. change uncertainly. b. not change. c. increase. d. decrease. ____ 4. A statement describing how the world should be a. is a normative statement. b. would only be made by an economist speaking as a scientist. c. would only be made by an economist employed by the government. d. is a positive statement. Figure 719 Price P4 Supply A P3 B C P2 D H P1 F I G Demand Q1 Q2 Quantity ____ 5. Refer to Figure 719 above. Suppose this market moves from a free market to one where the government imposes a price floor of P3. Consumer surplus a. decreases by area B b. increases by area B + C c. increases by area B d. decreases by area B + C ____ 6. All else equal, if the price of Legos increases, then the equilibrium wage for labor to produce Legos a. increases, and employment increases. b. decreases, and employment increases. c. does not change, and employment does not change. d. None of the above. ____ 7. Widgets have upward sloping supply and downward sloping demand. If buyers of widgets expect the price to increase in the future, but sellers expect their price to decrease in the future, the equilibrium price of widgets today will a. decrease, and the equilibrium quantity will increase. b. not change, and the equilibrium quantity will increase. c. decrease, and the equilibrium quantity will decrease. d. None of the above ____ 8. Toy trucks have upward sloping supply and downward sloping demand. Suppose the number of sellers in the market increases. Ceteris paribus, the equilibrium price of toy trucks will a. increase, and equilibrium quantity will change uncertainly. b. increase, and equilibrium quantity will not change. c. decrease, and equilibrium quantity will increase. d. increase, and equilibrium quantity will increase. ____ 9. In the market for labor, a higher minimum wage causes the quantity demanded for labor to a. increase, and unemployment to increase. b. decrease, and unemployment to decrease. c. decrease, and unemployment to increase. d. increase, and unemployment to decrease. ____ 10. Good X and Y are complements. If the price of good Y increases, then the a. demand for good X decreases. b. demand for good X increases. c. supply for good X decreases. d. supply for good X increases. ____ 11. Which of the following is considered scarce? a. A genuine diamond. b. Ramen noodles. c. Both A and B are scarce. d. Neither A nor B are scarce. ____ 12. Suppose the supply of MP3s are perfectly elastic, and the demand slopes downward. All else equal, an increase in the number of MP3 buyers will cause the equilibrium price of MP3s to a. not change, and equilibrium quantity of MP3s to increase. b. change uncertainly, and equilibrium quantity of MP3s to increase. c. increase, and equilibrium quantity of MP3s to increase. d. increase, and equilibrium quantity of MP3s to decrease. Figure 415 price 50 45 S 40 35 30 25 20 15 10 5 D 100 200 300 400 500 600 700 quantity ____ 13. Refer to Figure 415 above. At what price would there be a shortage of exactly 200 units? a. $20 b. $35 c. $15 d. $30 ____ 14. Refer to Figure 415 above. If the government imposes a price ceiling at $15, producer surplus equals a. $1000 b. $1500 c. $2000 d. None of the above. ____ 15. Positive externalities __________ market failure. The government can increase market efficiency by __________. a. do not cause / doing nothing. b. cause / doing nothing. c. cause / subsidizing them. d. None of the above. ____ 16. Public goods and services tend to result in market failure because they are a. rivalrous and nonexcludable, and the market produces more than the efficient amount. b. rivalrous and excludable, and the market produces fewer than the efficient amount. c. nonrivalrous and nonexcludable, and the market produces fewer than the efficient amount. d. None of the above ____ 17. List 1.0—Possible Causes I. An increase in income II. A change in the price of the good III. A technological advance Refer to List 1.0 above. Which of the above causes the demand for a good to change? a. I and II b. I only c. I, II and III d. II only Figure 210 batteries B A bagels ____ 18. Refer to Figure 210 above. The shift of the PPF from Curve A to Curve B illustrates a. a reallocation of resources away from the production of bagels and toward the production of batteries. b. an decrease in the opportunity cost of producing bagels. c. a technological advancement in battery production. d. both B and C are correct. ____ 19. During the Great Depression, Franklin D. Roosevelt’s administration imposed many a. price ceilings on agricultural goods, causing surpluses to exist. b. price floors on agricultural goods, causing shortages to exist. c. price floors on agricultural goods, causing surpluses to exist. d. None of the above ____ 20. Imposing a minimum wage in a labor market causes all workers, as a whole, to be a. worse off. b. no better or worse off. c. better off. d. Any of the above could be true. Figure 67 10 price S 9 8 7 6 5 4 3 2 D 1 10 20 30 40 50 60 70 80 quantity ____ 21. Refer to Figure 67 above. For a price ceiling to be binding in this market, it would have to be set at a. a price between $6 and $9. b. a price between $3 and $6. c. any price below $6. d. any price above $6. Figure 21 ____ 22. Refer to Figure 21 above. Which arrow above represents the flow of rent? a. Arrow A b. Arrow B c. Arrow C d. Arrow D ____ 23. In the late 1960s, the Federal Reserve increased the growth rate of the money supply. The Phillips curve predicts in the short run that unemployment a. changed uncertainly. b. increased. c. decreased. d. None of the above. ____ 24. If the government puts a binding price ceiling on housing, but the supply of housing is perfectly inelastic in the short run, then there will a. be a surplus of housing. b. be a shortage of housing. c. not be a shortage of housing. d. Any of the above could be true. ____ 25. Bill has two choices—Choice A is he works a job that earns him $50, and Choice B is that he spends $10 to attend a concert. If Bill chooses Choice B, the opportunity cost includes the foregone value of at least a. $0 b. $60. c. $10. d. $50. Scenario 11—Grimmville has a population of 100 people, and 20 individuals are in prison making license plates. The working age population is 50 people; of the working age population, 5 people are employed and 5 people are available for and seeking work. ____ 26. Refer to Scenario 11 above. The labor force in Grimmville equals a. 5 b. 10 c. 15 d. 25 ____ 27. Refer to Scenario 11 above. The unemployment rate in Grimmville equals a. 5% b. 25% c. 10% d. None of the above ____ 28. All else equal, suppose that workers migrate out of a country. In the market for labor, before the wage fully adjusts, there is a a. shortage of labor, and the equilibrium wage must fall. b. surplus of labor, and the equilibrium wage must fall. c. shortage of labor, and the equilibrium wage must rise. d. surplus of labor, and the equilibrium wage must rise. ____ 29. An increase in the marginal cost of producing a good causes consumer surplus to a. increase, and producer surplus to increase. b. change uncertainly, and producer surplus to increase. c. decrease, and producer surplus to decrease. d. decrease, and producer surplus to change uncertainly. ____ 30. Freebie (bubble one for credit). What is the BEST kind of phone? a. Android b. iPhone c. a banana phone d. paper cups with a string Exam #1 Answer Section MULTIPLE CHOICE 1. ANS: B 2. ANS: A 3. ANS: C 4. ANS: A 5. ANS: D 6. ANS: A 7. ANS: D 8. ANS: C 9. ANS: C 10. ANS: A 11. ANS: C 12. ANS: A 13. ANS: A 14. ANS: A 15. ANS: C 16. ANS: C 17. ANS: B 18. ANS: C 19. ANS: C 20. ANS: D 21. ANS: C 22. ANS: D 23. ANS: C 24. ANS: B 25. ANS: B 26. ANS: B 27. ANS: D 28. ANS: C 29. ANS: D 30. ANS: Any
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'