Navigation » List of Schools » Pierce College » Economics » Economics 002 – Principles of Economics II » Fall 2020 » Midterm Exam
Below are the questions for the exam with the choices of answers:
Question #1
A AD; right
B AS; right
C AD; left
D AS; left
Question #2
A shorter distance to equilibrium point
B longer distance to equilibrium point
C downward sloping AD curve
D flatter top portion of AD curve
Question #3
A wealth effect; encouraging; discouraging
B employment effect; discouraging; encouraging
C foreign price effect; discouraging; encouraging
D interest rate effect; encouraging; discouraging
Question #4
A government borrowing will increase sharply.
B the rise in domestic investment will mean a higher trade deficit.
C the trade deficit will decline sharply.
D the rise in domestic investment will mean a higher trade surplus.
Question #5
A financial capital supplied; equal the quantity of capital financial demanded
B foreign capital imports; less than the supply of domestic capital available
C foreign financial capital imports; equal to supply of domestic capital available
D foreign aid supplied; be lower than the quantity of domestic aid demanded
Question #6
A current trade balance; finance, law, and software product design.
B current account balance; telecommunications, computers, finance, law, and advertising.
C current account balance; goods, services, international income flows, and foreign aid.
D current trade balance; foreign aid announced by the government.
Question #7
A surplus of $1300
B surplus of $300
C deficit of $1300
D deficit of $300
Question #8
A a trade surplus means that there is a net inflow of capital
B a trade surplus means that there is a net outflow of capital
C a trade surplus exists if there is a net inflow of capital excluding foreign borrowing and lending
D a trade surplus exists if there is a net outflow of capital excluding foreign borrowing and lending
Question #9
A 38.58%
B 18.34%
C 70.61%
D 151.48%
Question #10
A wage protection clauses
B cost of living adjustments
C inflation protection plans
D inflation ceiling guarantees
Question #11
A entertainment
B recreation
C apparel and accessories
D transportation and insurance
Question #12
A ongoing rise
B ongoing decrease
C short term decrease
D short term rise
Question #13
A COLA plus 1.6%
B COLA plus 2.4%
C COLA plus 2.2%
D COLA plus 1.9%
Question #14
A 14.4%.
B 16.8%.
C 11%.
D 20.2 %.
Question #15
A cyclical unemployment
B cyclical employment
C seasonal unemployment
D frictional unemployment
Question #16
A It would increase.
B It would change, but the effect cannot be predicted.
C It would not change.
D It would fall.
Question #17
A labor unions strike for higher wages.
B the agriculture sector completes the cycle of planting, cultivating, and harvesting the nation’s food supply.
C business activity in the macroeconomy declines.
D the business cycle enters an expansionary phase.
Question #18
A 20%
B 5%
C 1%
D 10%
Question #19
A 5.6%.
B 7.1%
C 5.3%.
D 6.0%.
Question #20
A many people who claim to be unemployed actually work in the underground economy.
B people falsely claim that they are actively seeking work in order to receive unemployment benefits.
C either B) or C) occurs.
D many part-time employees would like to work fulltime, but are unable to get the additional work.
Question #21
A more resources are allocated to consumption goods.
B the productivity of labor declines
C taxes are imposed on investment in capital.
D it devotes more resources to research and development.
Question #22
A the quality of available resources
B the level of government spending
C technological change
D the quantity of available resources
Question #23
A 5 billion
B 260 million
C 6.2 billion
D 2.6 billion
Question #24
A one-half
B one-fourth
C double
D triple
Question #25
A physical capital
B a production function
C an aggregate production function
D human capital
Question #26
A use less capital and more labor in the production process.
B promote economic growth.
C increase welfare payments to the poor.
D increase the tax deduction for child dependents.
Question #27
A 10%
B 1%
C 20%
D 0.5%
Question #28
A contraction, recession, expansion, boom
B trough, expansion, recession, peak
C expansion, peak, recession, trough
D expansion, trough, recession, peak
Question #29
A the value of final goods and services produced, but not sold, during a period.
B the value of goods produced domestically and sold abroad.
C the value of intermediate goods sold during a period.
D the value of services rendered during a period.
Question #30
A the amount spent on consumer goods that last more than one year.
B the amount spent on stocks and bonds.
C the amount spent on purchases of art.
D the amount spent on new factories and machinery.
Question #31
A The timing of business fluctuations is regular and therefore easily predictable.
B During the contractionary phase of the business cycle, the rate of unemployment is generally quite low.
C A depression is a recession that is mild and relatively brief.
D The expansions and contractions of real world business cycles last varying lengths of time and often differ in magnitude.
Question #32
A the university tuition paid to enroll in a course
B sales revenue received from a yard sale
C a crisp $50 bill received on your birthday
D cash income received by a self-employed landscaper that is not reported to the IRS
Question #33
A NNP; GNP
B GNP; NNP
C NNP; GDP
D GDP; NNP
Question #34
A quantity demanded, price
B price, quantity supplied
C price, quantity demanded
D quantity supplied, quantity demanded
Question #35
A a shift of the demand curve for beef to the right.
B no change; only the supply curve for beef is likely to be affected.
C a movement down along the demand curve for beef to the right.
D a shift of the demand curve for beef to the left.
Question #36
A need to achieve a minimum standard of living.
B would like to have if the good were free.
C will buy at alternative income levels.
D will buy at various prices.
Question #37
A scarcity
B allocative efficiency
C utility
D the production possibilities frontier
Question #38
A technological progress
B a decrease in the average number of hours worked per week as the labor force chooses to enjoy more leisure time
C an increase in the production of capital goods
D an increase in the number of hours factories are in use
Question #39
A can be determined by adding up the bills incurred as a result of the action.
B can be determined by considering both the benefits that flow from as well as the monetary costs incurred as a result of the action.
C is a subjective valuation that can be determined only by the individual who chooses the action.
D can be objectively determined only by economists.
Question #40
A deciding to never purchase a coat made with animal skins or furs
B choosing to spend one more hour studying economics because you think the improvement in your score on the next quiz will be worth the sacrifice of time.
C acquiring the information relevant to a choice before making that choice
D measuring all of the costs of a meal against all of the benefits when deciding whether to order a second milkshake
Question #41
A consumers would be willing to purchase the same quantity of a good at a higher price.
B consumers are too poor to afford the goods and services available.
C at the current market price, consumers are willing to purchase more of a good than suppliers are willing to produce.
D it is impossible to completely fulfill the unlimited human desire for goods and services with the limited resources available.
Question #42
A is narrower in scope than microeconomics.
B analyzes mergers and acquisitions between firms.
C is concerned with the expansion and contraction of the overall economy.
D is concerned with the expansion of a small business into a large corporation.
Question #43
A savings market
B financial investment market
C financial capital market
D labor market
Question #44
A government
B household
C business
D capital market
Question #45
A Skill
B Division of labor
C Specialization
D Economies of scale
Question #46
A macroeconomics is concerned with groups of individuals while microeconomics is concerned with single countries.
B microeconomics looks at the forest (aggregate markets) while macroeconomics looks at the trees (individual markets).
C microeconomics is concerned with the trees (individual markets) while macroeconomics is concerned with the forest (aggregate markets).
D macroeconomics is concerned with generalization while microeconomics is concerned with specialization.
Question #47
A household savings
B government spending
C taxes
D interest rates