ECON 102 Midterm Exam
Name:
Student ID:
Exam Rules
1. The exam starts at 3:30 and ends at 4:45.
2. There are 15 multiple choice questions worth 4 points each, 2 short answer questions
worth 10 points each, and 2 analytical questions worth 20 points each (total 120 points).
3. Make sure to fill in the scantron for multiple choice questions. You will not be given
extra time at the end.
4. Calculators (including graphing calculators) are allowed. If you do not have a calcula-
tor, you can leave your answer as a fraction.
5. Please put all materials other than your calculator and a pen or pencil in your bag. If
you have a phone or other item out for any reason you will be given a 0 on the exam.
6. If you have a question or need to go to the bathroom raise your hand.
7. On the long questions you must SHOW ALL WORK. No credit will be given for an
answer with no work.
1
, Multiple Choice (4 points each)
1. Who is the current chair of the Federal Reserve?
(a) Paul Volcker
(b) Alan Greenspan
(c) Jerome Powell
(d) Janet Yellen
2. Keynes’s idea of “animal spirits” can best be summarized as
(a) Individuals hoarding money, which reduces aggregate demand and causes a drop
in output
(b) Waves of optimism and pessimism that lead firms to invest more or less for reasons
unrelated to changes in economic fundamentals
(c) Excessive greed that causes business owners to seek short term profits at the
expense of their workers
(d) When firms do not adjust their prices or wages instantly in response to changes
in the economy
3. A US firm buys a computer from a Taiwanese company that they plan to give to one
of their workers to help them be more productive. This transaction alone causes US
GDP to
(a) Increase, since the computer is a consumption good
(b) Increase, since the computer is an investment good
(c) Decrease, since the computer is imported
(d) None of the above
4. Which of the following will NOT increase the investment expenditure component of
GDP in the US
(a) A US farmer plans to sell 1000 bushels of wheat this year, but actually only sells
900 bushels so he puts the remainder in a silo to sell next year
(b) A Chinese firm builds a new factory in Los Angeles
(c) A US consumer buys a house newly built this year
(d) Goldman Sachs, an investment bank, buys 100 treasury bonds
5. All of the following are stock variables EXCEPT
(a) The dollar value of all buildings in the United States
(b) The number of students currently enrolled at UCLA
(c) The amount of money you currently have in your bank account
(d) Your monthly income
2
Name:
Student ID:
Exam Rules
1. The exam starts at 3:30 and ends at 4:45.
2. There are 15 multiple choice questions worth 4 points each, 2 short answer questions
worth 10 points each, and 2 analytical questions worth 20 points each (total 120 points).
3. Make sure to fill in the scantron for multiple choice questions. You will not be given
extra time at the end.
4. Calculators (including graphing calculators) are allowed. If you do not have a calcula-
tor, you can leave your answer as a fraction.
5. Please put all materials other than your calculator and a pen or pencil in your bag. If
you have a phone or other item out for any reason you will be given a 0 on the exam.
6. If you have a question or need to go to the bathroom raise your hand.
7. On the long questions you must SHOW ALL WORK. No credit will be given for an
answer with no work.
1
, Multiple Choice (4 points each)
1. Who is the current chair of the Federal Reserve?
(a) Paul Volcker
(b) Alan Greenspan
(c) Jerome Powell
(d) Janet Yellen
2. Keynes’s idea of “animal spirits” can best be summarized as
(a) Individuals hoarding money, which reduces aggregate demand and causes a drop
in output
(b) Waves of optimism and pessimism that lead firms to invest more or less for reasons
unrelated to changes in economic fundamentals
(c) Excessive greed that causes business owners to seek short term profits at the
expense of their workers
(d) When firms do not adjust their prices or wages instantly in response to changes
in the economy
3. A US firm buys a computer from a Taiwanese company that they plan to give to one
of their workers to help them be more productive. This transaction alone causes US
GDP to
(a) Increase, since the computer is a consumption good
(b) Increase, since the computer is an investment good
(c) Decrease, since the computer is imported
(d) None of the above
4. Which of the following will NOT increase the investment expenditure component of
GDP in the US
(a) A US farmer plans to sell 1000 bushels of wheat this year, but actually only sells
900 bushels so he puts the remainder in a silo to sell next year
(b) A Chinese firm builds a new factory in Los Angeles
(c) A US consumer buys a house newly built this year
(d) Goldman Sachs, an investment bank, buys 100 treasury bonds
5. All of the following are stock variables EXCEPT
(a) The dollar value of all buildings in the United States
(b) The number of students currently enrolled at UCLA
(c) The amount of money you currently have in your bank account
(d) Your monthly income
2
