Exam Version 1 Essay

1880 Words Sep 28th, 2013 8 Pages
Edgar A. Ghossoub ECO2013
Fall 2011
Exam I Version A:
Duration: 75 minutes.
You must use a SCANTRON answer sheet to record your responses and you may use a simple basic calculator.
You may not keep this test when you are finished.
1. If the GDP is $20,000 and investment spending is $8000, consumer spending is $9000 and net export is $1000. What is the Government Spending for this period? a. $10000
b. $8000
c. $2000
d. $‐10,000
Ans: C
2. If the Value of the dollar depreciates against the Euro:
a. Imports from Europe would stay the same
b. Imports from Europe would increase
c. Imports from Europe will fall and Exports to Europe will increase
d. Export to Europe would decrease
Ans: C
3. GDP2010 = $50 Million , GDP2011 =
…show more content…
Food and Energy prices are volatile
Edgar A. Ghossoub ECO2013
Fall 2011
b. the Fed cannot directly impact the price of food and energy
c. both a & b
d. Non of the above.
AND: C
11. Which of the following would not count towards GDP?
a.) Toyota’s manufactured in San Antonio, TX
b.) GM cars manufactured in Beijing, China
c.) GM cars manufactured in Detroit, MI
d.) Sony TVs manufactured in Paris, TX
e.) All of the above
Answer: b.) GM cars manufactured in Beijing, China
12.) Gross Investment in the Economy is comprised of:
a.) Total spending by firms on physical capital
b.) Business Inventories
c.) Residential Investment
d.) All of the Above
Answer: d.) All of the Above
13.) If the US Dollar appreciates against the Euro and depreciates against the
Yen what will happen?
a.) Americans will buy more Toyotas from Japan
b.) Japanese will buy fewer Cadillacs from America
c.) Americans will buy more Audis from Germany
d.) Americans will buy fewer Audis from Germany
e.) Germans will buy more Cadillacs form America
Answer: c.) Americans will buy more Audis from Germany
14.) Which of the following will result in a decrease in US Gross Domestic
Product?
a.) Americans begin consuming more
b.) Americans start saving more
c.) The US government increases spending
d.) Americans begin consuming more imported goods
e.) None of the above
Edgar A. Ghossoub ECO2013
Fall 2011
Answer: d.) Americans begin consuming

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