Download ECON 2301 Spring 2003

Macroeconomics
ECON 2301
Spring 2009
Marilyn Spencer, Ph.D.
Professor of Economics
Chapters 6-9 Review
Exam 2, March 31
 Chapters 6-9
Study PPT slides
Study assigned end-of-chapter questions
Study with a friend
 Test format:
25 multiple choice questions (+ 3 extra credit)
Questions include definitions, theory & applications –
Expect graphs and numbers.
1 hour
Scantron answer sheet provided
Test Resources Used
Please check any applicable box concerning "fees" for test
resources you plan to use DURING the exam:
 3x5 card with notes, 5 test points
 textbook and notebook, 15 test points
 information from others, 100 test points

Will NOT use additional resources*
* Two (2) points will be added to your score if you choose to
NOT use any of these test resources.
Name (please print):____________________
ID #: ______________________ (some portion of ID#)
Signature: ___________________________
Chapter 6 Learning Objectives
1.
Distinguish between average tax rates and marginal tax
rates
2.
Explain the structure of the U.S. income tax system
3.
Understand the key factors influencing the relationship
between tax rates and the tax revenues governments
collect
4.
Explain how the taxes governments levy on purchases of
goods and services affect market prices and equilibrium
quantities
5.
Understand how the Social Security system works and
explain the nature of the problems it poses for today’s
students
Chapter 6 EXAM QUESTION TOPICS
 Know about the revenue sources of our federal
government.
 Know average tax rates v. marginal tax rates.
 Know the differences among proportional taxes,
progressive taxes & regressive taxes.
 Be able to explain our personal income tax system, in
terms of the 3 taxes above.
 Know the major issues of our social security tax
system.
 Know how the taxes governments levy on purchases of
goods and services affect market prices and equilibrium
quantities.
Chapter 7 Learning Objectives
1. Explain how the U.S. government calculates the
official unemployment rate
2. Discuss the types of unemployment
3. Describe how price indexes are calculated and define the
key types of price indexes
4. Distinguish between nominal and real interest rates
5. Evaluate who looses and who gains from inflation
6. Understand key features of business fluctuations
Chapter 7 EXAM QUESTION TOPICS
 Know how the U.S. government calculates the official
unemployment rate.


Know who’s in the labor force and who isn’t.
Know what “discouraged worker” means.
 Know the 4 types of unemployment.
 Know how price indexes are calculated and define the
key types of price indexes.
 Be able to calculate a price index or use information
from a price index.
 Understand who looses and who gains from inflation.
 Understand key parts of a business cycle.
 Know how to calculate the real interest rate.
Chapter 8 Learning Objectives
1.
Describe the circular flow of income and output
2.
Define gross domestic product (GDP)
3.
Understand the limitations of using GDP as a measure of
national welfare
4.
Explain the expenditure approach to tabulating GDP
5.
Explain the income approach to computing GDP
6.
Distinguish between nominal GDP and real GDP
Chapter 8 EXAM QUESTION TOPICS
 Understand the circular flow model:


Know what is purchased in factor markets v. product
markets - by whom and from whom.
Know that income flows one way and resources/goods the
other.
 Be able to define gross domestic product (GDP).



Know the formula for the expenditure approach to GDP.
Know why intermediate goods aren’t included.
Know why not all production gets counted.
 Understand the limitations of using GDP as a
measure of national welfare.
 Understand the difference between real GDP &
nominal GDP.
Chapter 9 Learning Objectives
1. Define economic growth
2. Recognize the importance of economic growth rates
3. Explain why productivity increases are crucial for
maintaining economic growth
4. Describe the fundamental determinants of economic
growth
5. Understand the basis of new growth theory
6. Discuss the fundamental factors that contribute to a
nation’s economic development
9-10
Chapter 9 EXAM QUESTION TOPICS
 Know how we define economic growth.
 Understand the importance of economic growth rates.
 Know why even small differences in growth rates create major
differences over time.
 Be able to use an interest rate table to calculate how long it takes
for a country’s GDP to double or triple or….
 Know why productivity increases are crucial for
maintaining economic growth.
 Understand the fundamental determinants of economic
growth (what theory says is important).
 Know the fundamental factors that contribute to a nation’s
economic development
Assignment to be completed before
class April 2:
Read Chapter 14 & also read
Problems 14-1, 14-2, 14-4, 14-7,
14-9, 14-10, 14-12, 14-13 & 14-14
on pp. 362-364.