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