Answer key to sample problems for final exam

Here is the key to the sample problems for the final. The problems can be found in my I-drive folder (jjulian). Please let me know if there are any errors.

1-B, 2-A, 3-B, 4-D, 5-C***,
6-D, 7-C, 8-D, 9-B, 10-A,
11-A, 12-B, 13-C,
14-A, 15-D, 16-C, 17-D, 18-A, 19-X*, 20-D, 21-D,
22-C, 23-D, 24-B, 25-A**, 26-C, 27-B, 28-C,
29-C, 30-D, 31-A, 32-C

Notes:
*There is no answer among these. A, B, and D all shift AD to the left. C has no effect on AD. As P is lower, people will buy more stuff so Y is higher. However, since P is on the vertical axis, changes in P do not shift the AS or AS, you merely move down the AD curve.

**This is probably the most complex of the AD-AS questions. The tax cut will increase consumption and AD (shifting it right). The new sources of oil will serve to lower oil prices, which is an input into the production and delivery of most goods and services. This will shift AS to the right. So shifting both to the right will increase Y. But the increase in AD will put upward pressure on P, whereas the increase in AS puts downward pressure on P. They do not necessarily offset, leaving the answer A.

***Problem 5 originally had B as the answer, but the answer is C. My bad. Thanks to the two people who brought this to my attention!!!

If you have any questions, I should be online for a while today and this evening. But I'll warn you: I maybe be "away" after 9 p.m. Your final is at 12:30 on Tuesday. I should be in my office by 11 a.m. on Tuesday. I may be online earlier.

Test 3 results and current grade distribution

Econ 121 Test 3

Average = 24.64 out of 40 (62%)
Median = 24(60%)
Mode = 29 (72.50%)
Standard Deviation = 6.312 (15.8%)

The following scale should be used as a guide (frequencies in parentheses):

A: 31 + (16)

B: 24 – 30.5(29)

C: 18 – 23.5 (28)

D: 12 – 17.5 (11)

F: 11.5 and lower (0)


Updated grade distribution

Up to this point there are a total of 77 recorded points: 3 X 20 points for each test, 13 points for 8 homework assignments (one was worth 2 points), and 4 in-class participation credit point (a video).

Points remaining are a final exam (20 points), 2 homework points, and 1 participation credit point.

The total points recorded on your test paper do NOT include any extra credit points. All grade brackets are set without extra credit points. At the end of the semester after all points have been tabulated, the scale will be set, and then extra credit will be added and if you move into a higher test score bracket your grade will be upgraded accordingly.

Average = 54.07 out of 77 points (approx 70.22%)
Median = 53.125 points (approx 69%)
Standard deviation = 8.73 (approx. 11.33%)

If I were giving grades today this is the scale that I would use (again, it does not include the extra credit points) and frequencies are in parentheses.

Out of 77 points:

A: 60 + (22)

B: 54.000 – 59.999 (17)

C: 44.500 – 53.999 (34)

D: 37.000 – 44.499 (11)

F: below 36.999 (0)

Please note: If you did not take one of the tests and you have to take the comprehensive final, your points and this scale is meaningless.

One more note: All of this is unofficial. The only things official are your points (if you believe they are incorrect please see me at my office).

Answer Key to Test 3 sample problems

Here is the key to the sample problems. Please note that problems 6, 7, and 8 are outside the scope of our discussion. I should have edited this document better. But questions on different financial instruments are NOT part of this test.

1-A, 2-D, 3-A, 4-B**, 5-B, 6-B, 7-A,
8-A, 9-C, 10-D, 11-C, 12-C, 13-A,
14-A, 15-C, 16-C, 17-C, 18-A, 19-D, 20-C,
21-B, 22-D, 23-D, 24-B, 25-D, 26-D,
27-C, 28-B*, 29-A, 30-B, 31-D, 32-D,
33-C, 34-C,
35-B, 36-B, 37-D, 38-D, 39-B, 40-A.


*I know balance sheets must balance. This question is of a more difficult scope. One could argue that there should be $170 in borrowings from other banks or the Fed. Alternatively, $170 could be considered Net Worth. I have been trying to keep things simple by ignoring net worth. Adding borrowings would be tricky. If I put this question on the test I'd probably accept D as an answer as well. But I do not plan to put on a question of this level of "trickiness".

**4 was initially recorded as A. The correct answer is B.

If you think any of these is wrong please bring it to my attention. Thank you and good luck.