宏观经济学期中考试试题

2011年春宏观经济学公选课期中考试试题

注：本次考试全部为单项选择题，请将答案写在一张16开纸上。请于第9周（2011年4月26日）晚上课时将答案交给我。

1. In order to include many different products in a summary or aggregate measure, GDP

a. uses a combination of weights and measures.

b. uses a combination of price indexes and costs of production of the products.

c. uses only the cost of production of the products.

d. uses market prices.

2. Chris lives in Utah, where gambling is illegal. Chris becomes a professional gambler, going to

work each week in Idaho, where gambling is legal. In 2001, he earns $100,000 from his profession. What will be the effect of his earnings on GDP

a. None of his earnings will be included in GDP because gambling is illegal in his home

state.

b. Only the part of his earnings spent in Idaho will be included in GDP.

》

c. GDP will increase by $100,000 because the income was earned legally.

d. GDP will increase by a fraction of $100,000, equal to the fraction of the time Chris spends in Idaho.

3. Latrell decides to hire Cynthia to mow his lawn, instead of mowing it himself, as he is

accustomed to doing. As a result of this transaction,

a. GDP will increase.

b. GDP will decrease.

c. GDP will be unaffected because the same service would be performed in either case.

d. GDP could increase or decrease, depending on whether Cynthia mows Latrell's lawn as well as Latrell could mow it himself.

4. Suppose you find out that the GDP of China is $1,000 billion and the GDP of the United States

is $10,000 billion. You should conclude that

a. the typical person in the United States is 10 times as well off as the typical person in

China.

b. the typical person in the United States is more than 10 times as well off as the typical

person in China.

。

c. the typical person in the United States is less than 10 times as well off as the typical

person in China.

d. it is not possible to make a good comparison of the economic well-being of typical

individuals in the two countries without additional information.

5. The Necco candy factory in Cambridge, Massachusetts, found that it had produced 100,000

more rolls of Neccos in 1980 than it sold during the year. The value of those 100,000 rolls

a. would be written off as a loss; hence, would not be included as part of 1980 GDP.

b. would be included as part of GDP during the year in which they were finally sold.

c. would be included as part of 1980 GDP in the category of inventory investment.

d. None of the above are correct answers.

6. Oiko Nomos buys a new computer in June 2001 and then sells it to a friend in December 2001.

GDP

a. will include the value of both the June sale and the December sale.

b. will include the full value of the June sale, but only part of the value of the December

sale, since the computer had been used.

、

c. will include the value of the June sale only.

d. will include the value of the December sale only, since that was the final sale of the

computer in 2001.

7. The income that households and noncorporate businesses receive is called

a. proprietors' income.

b. personal income.

c. disposable personal income.

d. national incom

e.

8. The government reports that GDP "increased by 2 percent in the last quarter."

a. GDP increased by 8 percent for the year.

b. GDP increased at an annual rate of 8 percent during the last quarter.

`

c. GDP increased at an annual rate of 2 percent during the last quarter.

d. GDP increased at an annual rate of .5 percent during the last quarter.

9. If you buy a seafood dinner in a local restaurant

a. neither GDP nor consumption spending will be affected because you would have eaten

at home if you hadn't eaten at the restaurant.

b. GDP will be higher, but consumption spending will be unchanged.

c. GDP will be unchanged, but consumption spending will be higher.

d. both GDP and consumption spending will be higher.

10. If the GDP deflator was 100 in the base year of 2000, and was 105 in 2002, we can say that

a. the price level increased by 105 percent from 2000 to 2002.

b. the price level increased by 5 percent from 2000 to 2002.

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c. the price level increased by 205 percent from 2000 to 2002.

d. we cannot judge price increases from changes in the GDP deflator.

11. When the overall level of prices in the economy is increasing, we say that the economy is

experiencing

a. economic growth.

b. inflation.

c. unemployment.

d. deflation.

12. The price index in 2001 is 120, and in 2002 the price index is 126. What is the inflation rate

a. 5 percent

b. 6 percent

·

c. 26 percent

d. The inflation rate is impossible to determine without knowing the base year.

13. When prices change from year to year,

a. they all change proportionately.

b. they always increase.

c. they usually decrease.

d. they do not all change proportionately

14. An important difference between the GDP deflator and the consumer price index is that

a. the GDP deflator reflects the prices of goods and services bought by producers, whereas

the consumer price index reflects the prices of goods and services bought by

consumers.

b. the GDP deflator reflects the prices of all goods and services produced domestically,

whereas the consumer price index reflects the prices of goods and services bought by

consumers.

~

c. the GDP deflator reflects the prices of all goods and services produced by a nation's

resources, whereas the consumer price index reflects the prices of goods and services

bought by consumers.

d. the GDP deflator reflects the prices of goods and services bought by producers and

consumers, whereas the consumer price index reflects the prices of goods and

services bought by consumers.

15. In the United States, if the price of imported oil rises,

a. the GDP deflator rises much more than does the consumer price index.

b. the consumer price index rises much more than does the GDP deflator.

c. the GDP deflator and the consumer price index rise by about the same amount.

d. the consumer price index rises slightly more than does the GDP deflator.

16. Babe Ruth's 1931 salary was $80,000. The price index for 1931 is and the price index for

1999 is 166. Ruth's 1931 salary was equivalent to a 1999 salary of

a. about $87,000.

b. about $870,000.

.

c. about $1,870,000.

d. about $8,700,000.

17. Craig is offered an $80,000 per year job in Los Angeles, and a $60,000 per year job in Bismark.

The CPI for Los Angeles is 120 and the CPI for Bismark is 90. What is the Los Angeles job's purchasing power in "Bismark dollars"

a. $80,000

b. $107,000

c. $60,000

d. $72,000

18. If the nominal interest rate is 8% and rate of inflation is 3%, the real interest rate is

a. 11%.

b. 24%.

]

c. 5%.

d. %.

19. Which of the following is not true

a. Growth rates of real GDP per person vary substantially from country to country.

b. GDP measures total expenditures and total income.

c. Richer countries have more televisions, better nutrition, better health care, and longer

life expectancy.

d. Productivity is not closely linked to government policies.

20. A nation's standard of living is determined by

a. productivity.

b. gross domestic product.

—

c. national income.

d. how much it has relative to others.

21. In 2000, Erehwon had a population of 4,000 and real GDP of about 12,000,000. In 1999 it had

a population of 3,500 and real GDP of about 9,625,000. What was the growth rate of real

GDP per person in Erehwon between 1999 and 2000

a. about 25 percent

b. about 14 percent

c. about 9 percent

d. None of the above are correct.

22. If James expects to have a 10 percent salary increase each year, how long will it take for his

salary to double according to the "rule of 70"

a. 5 years

b. 7 years

》

c. 14 years

d. 20 years

23. Robin lives on a deserted island. If she spends 8 hours fishing, she catches 24 fish. Her

productivity of fishing is

a. 192 fish.

b. 1/3 hour per fish.

c. 3 fish per hour.

d. The answer cannot be computed using the information provided.

24. In a market economy, scarcity of resources is reflected in

a. supply.

b. demand.

;

c. the stock of the resource.

d. market prices.

25. If your firm has constant returns to scale, then if you doubled all your inputs your firm's

output would

a. not change.

b. increase, but by less than double.

c. double.

d. more than doubl

e.

26. One of the Ten Principles of Economics in Chapter 1 is that people face tradeoffs. The growth

that arises from capital accumulation is not a free lunch: It requires that society

a. conserve resources for future generations.

b. recycle resources so that future generations can produce goods and services with the

accumulated capital.

【

c. sacrifice consumption goods and services now in order to enjoy more consumption in

the future.

d. None of the above are correct.

27. In the long run, a higher saving rate increases the

a. level of income.

b. growth rate of output.

c. growth rate of productivity.

d. All of the above are correct.

28. If your American-based firm opens and operates a new plastics factory in Ireland, your firm is

engaging in

a. foreign portfolio investment.

b. foreign financial investment.

?

c. indirect foreign investment.

d. foreign direct investment.

29. Which of the following is generally an opportunity cost of investment in human capital

a. increased earning potential

b. future job security

c. forgone wages at present

d. All of the above are correct.

30. Other things the same, a country is likely to have a lower growth rate than other countries if it

a. has a small population.

b. pursues inward-looking policies.

…

c. encourages foreign investment.

d. protects property rights.

31. Financial markets are

a. the financial institutions through which savers can indirectly provide funds to

borrowers.

b. the financial institutions through which savers can directly provide funds to borrowers.

c. the financial institutions that sell shares to the public and use the proceeds to buy a

selection of various types of stocks and/or bonds.

d. None of the above are correct.

32. Alonzo pays $10,000 to buy a bond from IBM that promises repayment ten years from today.

Which of the following is correct

a. Alonzo is the principal of this bond.

b. The bond matures in 10 years.

?

c. The term of the bond is $10,000.

d. All of the above are correct.

33. Which bond would you expect to pay the highest interest rate

a. a bond of the U.S. government

b. a bond issued by a new restaurant chain

c. a bond issued by General Motors

d. a bond issued by New York state

34. People who buy stock in a corporation such as Starbucks provide

a. debt finance and so become part owners of Starbucks.

b. debt finance and so become creditors of Starbucks.

【

c. equity finance and so become part owners of Starbucks.

d. equity finance and so become creditors of Starbucks.

35. Compared to bonds, stocks offer the holder

a. higher risk.

b. potentially higher return.

c. ownership in a firm.

d. All of the above are correct.

36. Financial intermediaries are

a. the same as financial markets.

b. individuals who make a profit by buying a stock low and selling it high.

'

c. a more general name for financial assets such as stocks, bonds, and checking accounts.

d. financial institutions through which savers can indirectly provide funds to borrowers.

37. Y = C + I + G + NX is an identity because

a. the right-hand and left-hand sides are equal.

b. the equality holds due to the way the variables are defined.

c. each symbol identifies a variable.

d. None of the above are correct.

38. In a closed economy, what does (Y - T - C) represent

a. national saving

b. government tax revenue

/

c. public saving

d. private saving

39. A budget deficit is created when the government

a. buys back more bonds than it issues.

b. spends more than it receives in tax revenue.

c. receives more tax revenue than it spends.

d. None of the above are correct.

40. Your eccentric Uncle has promised to give you $50,000 when you graduate. You think that you

will graduate in three years and could get about 7 percent on any money you saved. What is the present value of the $50,000

a. $50,000

b. $50,0003

?

c. $50,000/3

d. None of the above are correct.

41. Cyclical unemployment is closely associated with

a. short-run ups and downs of the economy.

b. long-term economic growth.

c. fluctuations in the natural rate of unemployment.

d. None of the above are correct.

42. Who would not be included in the labor force

a. Mike, who has retired and is not looking for work

b. Jay, who is on temporary layoff

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c. Jane, who does not have a job, but has applied for several in the last week

d. None of the above are included in the labor forc

e.

43. Rick loses his job and immediately begins looking for another. Ceteris paribus,

a. the unemployment rate is unaffected, and the labor-force participation rate increases.

b. the unemployment rate decreases, and the labor-force participation rate is unaffected.

c. the unemployment rate increases, and the labor-force participation rate decreases.

d. the unemployment rate increases, and the labor-force participation rate is unaffected.

44. Discouraged workers

a. are not counted either as part of the adult population nor as part of the labor force.

b. are counted as part of the adult population, but not as part of the labor force.

^

c. are counted as part of the adult population, and as unemploye

d.

d. None the above are correct.

45. Nancy is searching for a job that suits her tastes about where to live and the people she works

with. Laura is looking for a job that makes the best use of her skills.

a. Nancy and Laura are both frictionally unemployed.

b. Nancy and Laura are both structurally unemployed.

c. Nancy is frictionally unemployed and Laura is structurally unemploye

d.

d. Nancy is structurally unemployed and Laura is frictionally unemployed.

46. Which of the following would be associated with the type of unemployment created by the

minimum wage law

a. Carrie quits her job as a history teacher because she would rather teach mathematics.

b. Bob pays his workers more than the equilibrium wage because he believes it makes

them more productive workers.

.

c. Jim decides to close his bicycle delivery service because he cannot afford to pay workers

the going wage.

d. In hopes of earning higher income Bruce goes back to trade school to get further

training.

47. According to the theory of efficiency wages, if Sarah, the CEO of a corporation that hires

nonunion labor, decides to increase what she pays workers above the competitive equilibrium wage,

a. the profits of her firm may increase as a result.

b. the higher wages will induce her workers to shirk.

c. the turnover of her workers may increase.

d. she will face a shortage of labor.

48. Moral hazard arises when

a. the principal runs a risk that an agent will perform less than satisfactorily.

b. the principal is performing a task on behalf of an agent.

:

c. the agent cannot perfectly monitor the principal's behavior.

d. the principal fires an agent.

49. Which of the following tends to reduce the natural rate of unemployment

a. unions

b. efficiency wages

c. job search

d. None of the above are correct.

50. Bill decides to hire some additional workers for his padlock factory. The equilibrium wage is

$12 per hour. Efficiency wage theory suggests that it is reasonable for Bill to offer

a. $12 per hour.

b. less than $12 per hour, since some people would be willing to work for less.

c. enough to attract the number of applicants necessary to fill the jobs available.

d. more than $12 per hour, so as to attract a better pool of applicants.

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