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Exam Version 1

In:

Submitted By mikepishaki
Words 1883
Pages 8
Edgar A. Ghossoub ECO2013
Fall 2011
Exam I Version A:
Duration: 75 minutes.
You must use a SCANTRON answer sheet to record your responses and you may use a simple basic calculator.
You may not keep this test when you are finished.
1. If the GDP is $20,000 and investment spending is $8000, consumer spending is $9000 and net export is $1000. What is the Government Spending for this period? a. $10000
b. $8000
c. $2000
d. $‐10,000
Ans: C
2. If the Value of the dollar depreciates against the Euro:
a. Imports from Europe would stay the same
b. Imports from Europe would increase
c. Imports from Europe will fall and Exports to Europe will increase
d. Export to Europe would decrease
Ans: C
3. GDP2010 = $50 Million , GDP2011 = $100 Million, P2010 = $10 and P2011 = $5
Calculate RGDP2011 using prices in 2010 as base year.
a. 200 million
b. 100 million
c. 25 million
d. not enough information
Ans: A
4. The labor Force consists of
a. all in the working age group
b. those actively seeking work
c. Those who are working
d. Both b & c
Edgar A. Ghossoub ECO2013
Fall 2011
Ans: D
5. Suppose #Unemployed = 60, Working age group = 1200. Calculate the unemployment rate?
a. 5%
b. 25.5%
c. can not be determined
d. 8%
Ans: C
6. Suppose Employed = 50, # of Unemployed = 20, size of working age
Population = 200, what is the Labor Force Participation Rate (LFPR)?
a. Can not be determined
b. 25%
c. 35%
d. 10%
Ans: C
7. Cyclical Unemployment:
a. Changes with the business cycle
b. Increases with recession
c. Decreases with expansion
d. All of the above.
ANS: D
8. The CPI
a. overstates the true change in the price level
b. Understates the true change in the price level
c. overstates the change in retail sales
d. Non of the Above.
ANS: A
9. If the CPI based inflation is given as 8% then the true inflation is:
a. Between 7% ‐ 7.5%
b. Between

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