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1、Spring2009ECON3312Quiz#11.ThemostvolatilecomponentofrealGDPis:a.Investment.b.Governmentspending.c.Consumption.d.Wagesandsalaries.e.Noneoftheabove2.Mercantilism:a.Precededclassicalism.b.Viewedmoneyaswealthandaspurtorealeconomicactivity.c.Believedstateactionwasnecessarytoensurethatm
2、arketsoperatedefficiently.d.Alloftheabove.e.Noneoftheabove.3.Intheclassicalmodel,firmsmaximize_______bysettingthe______equaltotherealwage.a.Output,MU.b.Profits,productionfunction.c.Profits,MPL.d.Utility,MPL.e.Noneoftheabove.4.Inthedeterminationoflaborsupply:a.Workersmaximizetherea
3、lwage.b.Firmsminimizetherealwage.c.Firmsmaximizeprofits.d.Workersmaximizeutility.e.Noneoftheabove.5.Assumethattheclassicallabormarketcanberepresentedbythefollowingequations:AggregateProductionFunction:Y=20+5NdLaborDemand:N=5-4(W/P)sLaborSupply:N=4+(W/P)WhatisequilibriumW/P,N,andY?
4、a.W/P=0.20,N=4.20,andY=41.00.b.W/P=1.00,N=1.00,andY=25.00.c.W/P=0.50,N=3.00,andY=35.00.d.Cannotbedeterminedfrominformationgiven.6.Thestartingpointfortheclassicaltheoryofmoneyis:a.Say'sLaw.b.Theequationofexchange/quantitytheory.c.Theloanablefundsmarket.d.Alloftheabove.e.Noneoftheab
5、ove.7.Thespecie-flowmechanismimpliesthat:a.Bullionismisasoundeconomicpolicy.b.Mercantilistswererightabouttheuseoftradepolicy.c.DavidHumeshouldhavestucktopoliticalphilosophy.d.GoldflowsinternationallymakeMercantilisttradepoliciesself-defeating.e.Noneoftheabove.8.Intheclassicalmodel
6、,whenADincreasesduetoanincreaseinmoneysupply,theeffectontheequilibriumrealwageis:a.Thesameastheeffectonrealoutput.b.Thesameastheeffectontotalemployment.c.Therealwageisnotaffected.d.Alloftheabove.e.Noneoftheabove.9.IntheClassicalmodel,realoutputisdeterminedby_________andthepricelev
7、elby_________intheClassicalmodel.a.aggregatedemand,aggregatedemandb.aggregatedemand,aggregatesupplyc.aggregatesupply,aggregatesupplyd.aggregatesupply,aggregatedemande.Noneoftheabove.10.Whichofthelistedfactorscancausetheaggregateproductionfunctiontoshift?a.Bubonicplague.b.Hurricane
8、inFlorida.c.DiscoveryofgasinArlin