Download ECON 2133 Assessment Exam

ECON 2133, sec. 001 students: Here is the “assessment quiz” that I announced in class
on Wednesday, Dec. 2. Please (1) enter your answers to the questions in the answer field
below and (2) copy/paste the answer field into an e-mail and send to me at
[email protected]
Each correct answer will earn you a bonus point. I will accept and apply answers
submitted before noon on Saturday, Dec. 5. Thank you.
E2133 Assessment Quiz
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ECON 2133 Assessment Exam
1. Which of the following would NOT be included in a nation’s GDP?
A) The government purchases 100 new trucks for the Army.
B) A student wins $500 in a poker game, and does not report it as income.
C) A landlord rents an apartment.
D) The inventory of unsold new cars increases.
2. “Real” GDP is
A) the same thing as “nominal” GDP.
B) nominal GDP plus exports.
C) nominal GDP adjusted for inflation.
D) the economy’s output measured in dollar terms (while nominal GDP is the
economy’s output measured in physical terms).
3. The labor force consists of
A) all individuals who have jobs.
B) all individuals over age 16.
C) all individuals over age 16 who have jobs or wish to work.
D) all individuals over age 21.
E) all individuals over age 21 who have jobs or wish to work.
4. A recession is defined as:
A) a period of time during which real GDP decreases.
B) a period of time during which nominal GDP decreases.
C) a period of time during which both nominal and real GDP decrease.
D) a period of time during which either nominal or real GDP decrease.
5. The long run aggregate supply curve (LRAS) is
A) horizontal, depicting the economy’s current price level.
B) vertical, depicting the economy’s current “full employment” output capacity.
C) upward sloping.
D) downward sloping.
E) curved.
6. In the U.S. economy, the progressive income tax and unemployment compensation are
both
A) discretionary presidential effectors.
B) necessary for fiscal policy to work.
C) time lag factors.
D) destabilizers.
E) automatic stabilizers.
7. When you buy a hamburger for lunch, you are using money as a(n)
A) medium of exchange.
B) deferred payment instrument.
C) income compensation.
D) store of value.
E) unit of account.
8. The discount rate is the interest rate
A) banks charge their best customers for loans.
B) banks charge other banks for interbank reserve loans.
C) the Federal Reserve charges on loans made to the U.S. government.
D) the Federal Reserve charges on reserve loans made to banks.
E) on short-term U.S. government securities.
9. According to the quantity theory of money, any change in the economy’s price level
may be explained by changes in the
A) velocity of money.
B) prime interest rate.
C) federal funds rate.
D) nominal money supply.
E) real interest rate.
10. The term “monetary and fiscal policy” refers to
A) an individual’s money management and spending decisions.
B) statements made by the President or the Chairman of the Federal Reserve
regarding the state of the economy.
C) a corporation’s money management and spending decisions.
D) actions taken by the Federal Reserve and Federal Government specifically
designed to affect the performance of the economy.
Thank you for participating!