Key to sample problems for test 1

Here is the key. I sorta forgot about it earlier. I put this together rather quickly so please let me know if you think something is incorrect. I should have my AIM on for a few hours this evening.

So watch this space for updates.

1-A+, 2-C+, 3-D+, 4-D, 5-B, 6-A, 7-D,
8-A, 9-A, 10-B, 11-D, 12-A, 13-B, 14-B,
15-B, 16-B, 17-D, 18-A, 19-D, 20-D,
21-D*, 22-C*, 23-C*, 24-A*, 25-B, 26-D, 27-A,
28-B, 29-B, 30-B, 31-C, 32-C, 33-B,
34-B, 35-C, 36-D, 37-D, 38-C,
39-D, 40-A, 41-B, 42-A,
43-B, 44-B, 45-A, 46-D,
47-D, 48-B, 49-B, 50-B, 51-D, 52-D**, 53-B


Comments

+(updated at 10:26 p.m.) #1 - 3 we didn't really talk about. I won't ask any business cycle questions. Except that we talked about recessions which are business cycle related. Recessions are when output declines and unemployment rises.

* Problems like 21 through 24, where you have to calculate GDPs from hypothetical data, will NOT be on the test. We did not do any of those in class or homework and it is not well covered in the Taylor text. Keep in mind these problems are from old tests. The test on Thursday will cover material we focused on in class as well as the assigned readings.

HOWEVER- This sample test lacks a bit of calculating ratios and percentage changes like from the first homework. Make sure you know how to do those problems.

**I don't like the wording in this problem as I think it is tricky in its use of "may". I think all of the above are true but if you think "may" includes the possibility someone has a comparative advantage in everything they do, well, then only C would be correct. I'm not going to argue. I'm just going to say I don't expect to put a question of this nature on one of my exams again.


Good luck.