課程名稱︰經濟學原理與實習下
課程性質︰必修/A5通識
課程教師︰魏凱立
開課學院：社會科學院
開課系所︰經濟系
考試日期（年月日）︰2020/04/24
考試時限（分鐘）：120
試題 :
Multiple Choice:
(3 pts each)
1. Which type unemployment would you expect to decrease during economic boom
(a period of fast economic growth)?
a. Cyclical unemployment
b. Frictional unemployment
c. Structural unemployment
d. All three types of unemployment (v)
2. Does saving always equal investment in an economy closed to trade?
a. No, they might be unequal the amount of inventory is changing.
b. No, they might be unequal if the government runs a surplus or deficit.
c. No, they might be unequal if property values are changing.
d. Yes. (v)
3. Why do minimum wage laws often cause unemployment?
a. People do not want to work at the minimum wage.
b. Some people are willing to work at less than the minimum wage. (v)
c. Employers often ignore minimum wage laws.
d. Minimum wage laws decrease the labor force.
4. Under what conditions do employers use efficiency wages?
a. When it is difficult to monitor(watch) laborers. (v)
b. When unemployment is greater than the natural rate.
c. When unemployment is less than the natural rate.
d. When most of the work force is unionized.
5. Suppose an economy's imports increase by $1000, but this does not affect production.
How would this affect GDP?
a. It would increase GDP.
b. It would decrease GDP.
c. It would not affect GDP. (v)
d. The effect on GDP is uncertain.
6. In Taiwan, and most other developed countries, which worker tend to
have the highest unemployment rate?
a. Women over 50 years of age.
b. Men over 50 years of age.
c. Young people under 25 years of age. (v)
d. Women from 25 to 50 years of age.
7. What component of China's GDP is unusually large?
a. Consumption
b. Investment (v)
c. Government
d. Net Exports
8. What component of Taiwan's GDP is unusually large?
a. Consumption
b. Investment
c. Government
d. Net Export (v)
9. You owe your friend NT10,000. You tell him you now have the money to pay him back, but you suggest that instead (a) you either flip a coin and pay her $20,000 if the coin comes up heads and nothing if the coin comes up tails, or (b) roll a dice and pay her NT$50,000 if you roll a one and nothing otherwise. Of course, you can also (c) just pay her back the NT$10,000. After thinking it over, she choose (b). Your friend is:
a. Risk Averse
b. Risk Neutral
c. Risk Loving (v)
d. Obviously Irrational
e. Unknown (not enough information)
10. Which of the following four economies has accumulated the lowest government debt compared to GDP?
a. Japan
b. China
c. Taiwan (v)
d. The U.S
11. In country A, future money has a high present value. In country B, future money has a much lower present value. In which country will nominal interest rates be highest?
a. Country A
b. Country B (v)
c. Not enough information. We also need to know about the relative demand for funds.
d. Not enough information. We also need to know about the relative supply for funds.
12. Why does Mankiw think the fixed basket used to calculate CPI will overstate the rate
of inflation?
a. Consumers will choose to buy more of the goods that rise less in price. (v)
b. A fixed basket does not adjust for changes in quality.
c. A fixed basket does not adjust for changing consumer tastes.
d. The consumer basket used contains too few services and too many goods.
13. The quality of services is often hard to measure. Suppose service quality is increasing faster than the government thinks it is increasing. How would that affect the CPI inflation rate?
a. There would be no effect.
b. The government would overestimate the inflation rate. (v)
c. The government would underestimate the inflation rate.
d. The effect on the CPI inflation rate would be uncertain.
14. Can interest rates in an economy ever be as low as -10%?
a. Nominal interest rates can be this low if there is inflation.
b. Nominal interest rates can be this low if there is deflation.
c. Real interest rates can be this low if there is inflation. (v)
d. Real interest rates can be this low if there is deflation.
e. No. This is just impossible.
15. If the government runs a deficit, how does this affect the market for loanable funds.
a. Demand shifts rightward.
b. Demand shifts leftward.
c. Supply shifts rightward.
d. Supply shifts leftward. (v)
e. There is no direct on the market.
16. Which element of GDP tends to be most volatile (changes the most over short periods of time)?
a. Consumption
b. Investment (v)
c. Government Spending
d. Imports
e. Exports
Short Answer
17. Suppose a car is manufactured in 2019, but is not sold to a consumer until 2020. In which year does this car increase GDP? What happens to the GDP components in the other year? (2x2 = 4pts)
18. In most countries, GDP per capita increases less each year (in % terms) than GDP increases. Why? (2x2 = 4pts)_
19. South Korea's nominal GDP per capita is higher than Taiwan's nominal GDP per capita, but Taiwan's GDP(PPP) per capita is higher than South Korea's GDP(PPP) per capita. How is this possible? (2pts)
20. In the long run, how should an increase in inflation affect the nominal interest rate? (2pts)
21. You decide to set up a commune. You invite everyone to join. People will earn money by working outside the commune the commune, but then they must give the commune all the money they earn it will be equally divided among the commune members.
(a) How might the problem of adverse selection cause your commune to fail?
(b) How might the problem of moral hazard cause your commune to fail? (2x2 = 4pts)
22. For Jack, the present value of NT$5,000 in two years is NT$4,500 now. For Jill the future value of $4,500 now is NT$5,500 two years from now. Who should lend money to whom? (2pts)
23. Jim invests in the stock market according to a rule. If he sees a stock rise in value four days in a row, he buys the stock and holds it one day before selling it. He argues that the stock has already risen for four days, so it probably will rise for at least one day more. Jim tries this strategy for a year. Do you expect Jim to make money? Why or why not? (2pts)
24. In the market for loanable funds, the interest rate is falling, and the supply of loanable funds is also falling. Is this possible? Why or why not? (2pts)
25. What is the difference between foreign direct investment(FDI) and foreign portfolio investment? Why might a poor country prefer to accept foreign direct investment rather than foreign portfolio investment? (2x2 = 4pts)
26. In one sentence, explain what economists mean when they say there are diminishing returns to investment in capital? (2 pts)
27. Briefly(in no more than a couple sentences), state how total factor productivity differs from labor productivity(the type productivity discussed in the textbook). (2pts)
28. Suppose there are 10,000,000 people in an economy's adult population. 6,200,000 are employed and 400,000 are unemployed. What is the labor force participation rate? What is the unemployment rate? Give your results to the nearest tenth of a percent. (2x2 = 4pts)
29. You are 30 years old and have just taken out a big loan and bought a house for NT$50,000,000. The value of the house increases 5% each year. What is the approximate of the house when you are 58 years old? (2pts)
30. A village moneylender lends to poor farmers at high interest rates, but sometimes makes very little profit. Briefly describe a concrete transaction cost that can make such moneylending unprofitable. (2pts)
A longer question
31. Economic statistics for Bulgonea
Year Strawberries Trucks Dresses Shoes
boxes $/box number $/truck number $/dress pairs $/pairs
2017 600 $32 120 $400 1500 $14 2500 $10
2018 700 $40 110 $600 1400 $10 2300 $9
2019 650 $45 110 $600 1700 $9 2200 $7
The above are the four goods produced in Bulgonea. All the trucks are exported in order to buy potatoes.
Potatoes cost $2 in 2018 and 2018 and $3 in 2019. Trade is always balanced so that M = X (net exports = 0).
The consumer basket used to calculate the CPI consists of 1 box of strawberries, 2 dresses, 2 pairs of shoes and 10 potatoes. 2017 is the base year for all calculations.
For each year, report
(a)nominal GDP
(b)real GDP
(c)the GDP deflator
(d)the CPI
(12x1 = 12pts)
Then calculate
(e)the GDP deflator rate of inflation for 2019(compared to the previous year)
(f)the CPI rate of inflation for 2019(compared to the previous year)
(2x2 = 4pts)