Exam C

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mef12
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186746
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Exam C
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2012-12-03 00:02:50
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Macro Econ
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Exam C
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  1. One implication of the median-voter model is that at any point in time, most voters will:
    Be unhappy with the amount of government involvement in the economy
  2. Political corruption occurs in the following instances, except:
    When businesses pay property taxes and license fees
  3. The study of public choice theory involves the economic analysis of the following, except:
    Impact of budget deficits on the public debt.
  4. The principal-agent problem refers to the problem of:
    The interests of delegates deviating from the interests of the delegators.
  5. Which of the following would be an avenue for resolving the inefficiencies associated with majority voting?
    Political logrolling
  6. Refer to the table, which shows the ranked preferences of voters for three alternative projects with "1" being the top preference. In a paired-choice vote between a stadium and a park:
    A majority of the voters would favor the park, 2-to-1
  7. The temporary Assistance for Needy Families (TANF) program provides a sort of "divorce insurance" and could lead to a problem of:
    Moral hazard
  8. Credit bureaus provide credit histories to banks and insurance companies, in order to help deal with the problem of:
    Adverse selection
  9. The major problem with paired-choice majority voting is that the outcome:
    May depend on the order of the voting
  10. The unemployed are those people who:
    Are not employed but are seeking work
  11. In calculating the unemployment rate, "discouraged" workers who are not actively seeking employment are:
    Excluded from the labor force
  12. The descriptions give the responses of four individuals to a Bureau of Labor Statistics (BLS) survey of employment.Refer to the following information. Which individual would be classified as a discouraged worker?
    1. Mollie just graduated from college and is now looking for work. She has had three job interviews in the past month.
    2. George works in an automotive assembly plant. He was laid off six months ago as the economy weakened. He expects to return to work in several months when national economic conditions improve.
    3. Jeanette worked as an aircraft design engineer for a company that produces military aircraft until she lost her job last year when the Federal government cut defense spending. She has been looking for similar work for a year but no company seems interested in her aircraft design skills.
    4. Ricardo lost his job last year when his company downsized and laid off middle-level managers. He tried to find another job for a year, but was unsuccessful and quit looking for work.
    4
  13. If the negative GDP gap were equal to 4% of the ptential GDP, Okun's law suggests that the actual unemployment rate would exceed the natural rate of unemployment by:
    Two percentage points
  14. The descriptions give the responses of four individuals to a Bureau of Labor Statistics (BLS) survey of employment.Refer to the following information. Which individual is structurally unemployed?
    1. Mollie just graduated from college and is now looking for work. She has had three job interviews in the past month.
    2. George works in an automotive assembly plant. He was laid off six months ago as the economy weakened. He expects to return to work in several months when national economic conditions improve.
    3. Jeanette worked as an aircraft design engineer for a company that produces military aircraft until she lost her job last year when the Federal government cut defense spending. She has been looking for similar work for a year but no company seems interested in her aircraft design skills.
    4. Ricardo lost his job last year when his company downsized and laid off middle-level managers. He tried to find another job for a year, but was unsuccessful and quit looking for work.
    3
  15. Which of the following countries experienced deflation for several years in the period 1999-2009?
    Japan
  16. A statement that is often used to describe demand-pull inflation is:
    "To much money chasing too few goods"
  17. The descriptions give the responses of four individuals to a Bureau of Labor Statistics (BLS) survey of employment. Refer to the following information. Which individual is frictionally unemployed?
    1. Mollie just graduated from college and is now looking for work. She has had three job interviews in the past month.
    2. George works in an automotive assembly plant. He was laid off six months ago as the economy weakened. He expects to return to work in several months when national economic conditions improve.
    3. Jeanette worked as an aircraft design engineer for a company that produces military aircraft until she lost her job last year when the Federal government cut defense spending. She has been looking for similar work for a year but no company seems interested in her aircraft design skills.
    4. Ricardo lost his job last year when his company downsized and laid off middle-level managers. He tried to find another job for a year, but was unsuccessful and quit looking for work.
    1
  18. WHich of the following is a correct statement?
    Demand-pull inflation will continue so long as there is excess total spending in the economy
  19. Which of the following is the correct way to calculate the unemployment rate?
    [(unemployed)/(labor force)] x 100
  20. If the taxes by state and local governments were combined with the Federal tax system, the overall tax structure in the U.S. would best be characterized as:
    Progressive
  21. The following data represent a personal income tax schedule. Answer the question on the basis of this information. Refer to the following table. As income increases, the marginal tax rate:
    Increases
  22. The graphs below illustrate the market for a product on which an excise tax has been imposed by government. Refer to the graph. What was the price of the product before the tax was imposed, and what is the price with the tax?
    $8 and $11 respectively
  23. The graphs below illustrate the market for a product on which an excise tax has been imposed by government. Refer to the graph. What is the area that represents the portion of the excise tax taht is the burden to consumers?
    WXTV
  24. In 2009, the so-called Tax Freedom Day in the U.S. occurred in:
    April
  25. The circular flow model with government would show that government:
    Provides goods and services to businesses and households and pays for them with net taxes
  26. In 2008, the largest portion of Federal employees were in which of the following sectors?
    Postal service and national defense
  27. If government levies a tax or fee on hunting licenses and uses the resulting revenue for wildlife stocking programs, this would be an example of:
    The benefits-received principle of taxation
  28. Refer to the graph. Assume the market for this product is in equilibrium at the intersection of D2 and S1. The shift in supply from S1 to S2 is due to an excise tax imposed on the product. How much is the tax per unit of product?
    $4
  29. Refer to the graph. Assume the market for this product is in equilibrium at the intersection of D2 and S1. The shift in supply from S1 to S2 is due to an excise tax imposed on the product. The excise tax revenue collected by the government will be:
    $24
  30. Refer to the table, which shows the ranked preferences of voters for three alternative projects with "1" being the top preference. In a paired-choice vote between a jail and a stadium:
    A majority of the voters would favor the stadium, 2-to-1

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