General Business 765 Name _____________________
Spring 2002 Student ID _________________
Answers to First Midterm
The exam consists of three parts: Part I is multiple-choice questions; Part II is problems; and Part III is an essay. There are a total of 60 points in Part I with each of the thirty multiple-choice questions worth 2 points each. There are a total of 24 points in Part II with each problem worth a total of 8 points. There are a total of 16 points in Part III.
You will need to fill in the above information blanks on the exam. A failure to accurately (and legibly) fill in the information section may result in penalty points on the exam.
Stop, take a deep breath, and think carefully before you answer any questions. There are no intentional “tricks”. Good luck.
PART I: MULTIPLE-CHOICE QUESTIONS (2 POINTS EACH)
1. Which of the following statements is a positive statement?
a. The use of fossil fuels is contributing to global warming.
b. Accounting firms should be more heavily regulated by the government.
c. The demise of Enron would not have occurred if we had effective campaign finance reform.
d. Welfare programs may adversely affect work incentives for the recipients of welfare.
e. All of the above are positive statements.
f. (a) and (d) are positive statements.
Answer: F
Both (a) and (d) are testable statements, while (b) and (c) are subjective opinions and not open to testing. E.g., Enron can not be made solvent and then evaluated after campaign finance reform. (d) is an objective statement in that it is possible to evaluate welfare programs and how they affect people’s work incentives: in fact, the past decade offers several examples of exactly that type of test of the relationship between welfare programs and work incentives.
2. A production possibilities frontier is bowed out from the origin because of
a. Scarcity of resources.
b. The failure of technology to advance in a continuous manner.
c. Specialization of resources.
d. Opportunity cost.
e. Underemployment of resources.
Answer: C
Although it might be tempting to answer (a), scarcity with the PPF is illustrated by the fact that there are points that are impossible to reach given the constraints of your resources and technology. (b) is incorrect since a change in technology will cause the PPF to shift outward from the origin. (d) is incorrect since the slope of the PPF measures opportunity cost.
3. As you move upward along a bowed out from the origin production possibilities frontier, the opportunity cost of producing more of the good measured on the y-axis
a. Equals the increase in the number of y units produced.
b. Remains constant.
c. Decreases.
d. Increases.
e. Cannot be measured without additional information.
Answer: D
This is just a simple matter of drawing a bowed out from the origin PPF and then considering what happens to the amount of the X good you must give up as you increase Y production from zero units to 1 unit, to 2 units, to 3 units, ….the Law of Increasing Opportunity Cost holds for both X and Y.
4. Suppose Country Z’s production possibility frontier for the production of guns (G) and butter (B) is given by the following linear equation:
G = 100 – 10B
Where G is measured on the y-axis and B is measured on the x-axis. Furthermore, suppose that Country A’s production possibility frontier for the same two goods is given by
G = 50 – 2B
If these are the only two economies in the problem and they are producing only these two goods, then which of the following statements is true?
a. The opportunity cost of producing more G for Country Z is .1 B.
b. The opportunity cost of producing more G for Country A is 5B.
c. Country Z has an absolute advantage in producing G.
d. Country A has a comparative advantage in producing B.
e. All of the above are correct.
f. (a) and (c) are correct.
g. (a), (c), and (d) are correct.
Answer: G
(a) is correct since the opportunity cost of producing more of the good on the Y axis is the absolute value of the reciprocal of the slope of the equation: the slope of the equation is –10 so the absolute value of the reciprocal of that slope would equal .1: the opportunity cost of producing one more unit of G is therefore .1B. (c) is true since Z can produce 100 units of G if it produces 0 units of B while A can only produce 50 units of G if it produces 0 units of B. (d) is true since A has a lower opportunity cost for producing B than does Z (opportunity cost for A is 2G while for Z it is 10G).
5. To find the market demand curve for a private good
a. Hold price constant and sum together the quantities demanded by all consumers at that price: repeat this procedure for other prices.
b. Hold quantity constant and sum together the prices that people are willing to pay for that quantity; repeat this procedure for other quantities.
c. Take the individual demand curve and multiply it by the number of people in the market.
d. Find out how much of the good suppliers are willing to supply at each price since suppliers willingness to supply the good will determine how much of the good is available at each price.
e. Look at historical figures to see how many units of the good the market has consumed on average over the past five years.
Answer: A
(a) describes the horizontal summation of individual demand curves in order to derive the market demand curve. (b) describes the vertical summation of individual demand curves in order to derive the market demand curve for a Public good. (c) is incorrect because it presumes that everyone in the market will have the same individual demand curve for the product: yet, we know that some people have stronger preferences for some goods than do other people. (e) might give you an approximation in some markets, but it does not work for new goods (no historical figures) nor does it necessarily give an accurate measure of the current demand conditions (e.g., who is buying the popular fad products for five years ago?).
6. Consider the market for bicycles. What will happen in this market if the price of labor increases while the price of scooters decreases?
a. The equilibrium price will increase while the equilibrium quantity will decrease.
b. The equilibrium price will decrease while the equilibrium quantity will decrease.
c. The equilibrium price will be indeterminate while the equilibrium quantity will increase.
d. The equilibrium price will be indeterminate while the equilibrium quantity will decrease.
e. The equilibrium price will increase while the equilibrium quantity will be indeterminate.
Answer: D
Both the demand curve and the supply curve shift to the left. We can know for certain that the equilibrium quantity has decreased relative to its initial level, but without additional information about the relative size of these two shifts we cannot know with certainty whether price has increased, decreased, or remained the same. This is a case of indeterminancy.
Use the information below to answer the next three questions.
Consider a market for widgets described by the following demand and supply equations:
Demand: Q = 500 - P
Supply : Q = 4P - 400
7. In equilibrium, the consumer surplus in this market is equal to ______ while the producer surplus is equal to __________.
a. $102,400; $25,600
b. $51,200; $12,800
c. $180; $100
d. $320; $80
e. $64,000; $64,000
Answer: B
To answer this you must know the equilibrium quantity and price (320, 180), the y-intercept of the demand curve (500) and the y-intercept of the supply curve (100). Then it is a relatively simple matter to compute both the CS and the PS.
8. Suppose the government decides that consumption of this product is too high and should be reduced by 20 units. In order to obtain this goal the government will legislate an excise tax of ________ on producers of the good.
a. $15 per unit
b. $20 per unit
c. $25 per unit
d. $30 per unit
e. $35 per unit
Answer: C
This question presumes that you found the equilibrium quantity of 320 in the last question. Then, if consumption is to decrease to 300 units demanders must pay a price of 200 (plug in a quantity of 300 into the demand equation to get this price) and suppliers must receive a net price of 175 (plug in a quantity of 300 into the supply equation to get this price). The difference between the demanders’ price and the net price of suppliers is the per unit excise tax ( in this case, $25 per unit).
9. The imposition of the tax imposed in question 8 will reduce consumer surplus by ____, create a deadweight loss of ______, and provide tax revenue equal to _______.
a. $45,000: $0; $6000
b. $6000; $0; $6000
c. $6200; $250; $7500
d. $6200; $0; $200
e. $6200; $200; $7500
Answer: C
The consumer surplus with the tax is equal to $45,000 and so the reduction in the consumer surplus due to the tax is equal to 51,200-45,000 or $6,200. This eliminates answers (a) and (b). The deadweight loss due to the tax is equal to ˝(25)(20)= $250 which will eliminate answers (d) and (e). Tax revenue (as a check to see if (c) is 100% right) is equal to ($25 per unit)(300 units) or $7500.
10. Which of the following statements is true?
a. An increase in the price of the good will cause demand to decrease.
b. A decrease in factor prices will cause a rightward shift in the supply curve.
c. The economic incidence of excise taxes always falls on consumers.
d. (a) and (b)
e. (a), (b), and (c)
Answer: B
(a) is incorrect because when we refer to the demand for a product we are referring to the entire demand curve: a change in the price of the good will not cause the demand curve to move, it will cause a movement along the demand curve. (c) is incorrect, since unless the demand curve is perfectly inelastic or perfectly elastic the economic incidence of an excise tax will be shared by consumers and producers. That leaves (b): if factor prices decrease, holding everything else constant, then producers will supply more of their product at every price.
11. The most prominent role for money is to serve as a
a. form of credit.
b. source of income.
c. means of payment.
d. standard of value.
e. store of value.
Answer: C or D
All of these are functions of money, but the primary role for money is that it allows us to make transactions: to pay for goods and services in an efficient manner. An another important role for money is its ability to provide a standard of value.
12. GDP
a. Provides a measure of the nation’s well being.
b. Includes the value of leisure.
c. Is adjusted downward for the cost of pollution generated in producing goods and services.
d. Per capita measures the standard of living an economy has.
e. None of the above is true.
Answer: E
GDP does not provide a measure of the nation’s well-being: you might have a very high GDP but your well-being might be relatively low from pollution, the provision of “bad” goods, or the failure to have any leisure time to enjoy your family and friends. (b) is not included in GDP. (c) is also not true for GDP calculations. That leaves (d): here the idea is to think about being precise in your language: GDP per capita measures the average standard of living in an economy. If you quibble about this think about the following: suppose that the average on the midterm is 70 (score per capita): if you made a 45 on the midterm is it true that the average measures your score? No, the average measures the average score on the midterm.
13. Gross investment in a year
a. Includes depreciation and therefore overstates the level of new investment that occurs in a year.
b. Will equal the amount of capital at the end of the year.
c. Includes new home construction.
d. All of the above are true.
e. (a) and (c)
Answer: E
Gross investment is equal to the investment that occurs because of depreciation of capital as well as new investment: hence, it overstates the level of new investment in an economy (a). The amount of capital is a stock measure (measured at a point in time) while the amount of investment is a flow measure (measured over a certain amount of time). (c) is included in investment and not consumption since new homes are viewed as a means of augmenting the capital stock.
Answer the next three questions using the information provided in the table below.
|
|
Prices in 2000 |
Quantities in 2000 |
Prices in 2001 |
Quantities in 2001 |
|
Bikes |
$200 |
500 |
$300 |
600 |
|
Cars |
$10,000 |
200 |
$9000 |
260 |
|
CDs |
$10 |
300 |
X |
400 |
Assume that the economy depicted in the above table produces only three goods: bikes, cars, and CDs.
14. Suppose you are told that nominal GDP is 20% greater in 2001 than it was in 2000. What is the value of nominal GDP in 2001?
a. $6,309,000
b. $2,556,000
c. $2,103,000
d. $2,523,600
e. Cannot be determined without more information
Answer: D
To find this you need to first calculate GDP for 2000: $2,103,000. Then multiply this by 1.20 to get GDP 2001: $2,523,600.
15. The price for a CD in 2001 is
a. the same as the price for a CD in 2000 in nominal terms.
b. the same as the price for a CD in 2001 in real terms.
c. 10% lower in 2001 than it was in 2000 in nominal terms.
d. 20% lower in 2001 than it was in 2000.
e. 20% higher in 2001 than it was in 2000.
Answer: C
To find this answer you need to take the GDP measure calculated in the last question and set it equal to the sum of the products of the prices in 2001 times the quantities in 2001. Solve this equation for the missing price and you will get the price of CDs is $9 in 2001. When you compare this price to the price in 2000 you will see that $9 is 10% lower than $10.
16. Using 2000 as the base year, a “simple” calculation of real GDP for 2000 would equal ______ and a “simple” calculation of real GDP for 2001 would equal _______.
a. 100; 120
b. 100; 80
c. $2,523,600; $3,028,320
d. $2,103,000; $2,523,600
e. This cannot be calculated without additional information.
Answer: B
This is the idea presented in class about using the same prices, but the different quantities to calculate real GDP for each year. It is a relatively simple calculation with the drawback that it does not utilize all the information that is available. When you calculate real GDP 2001 using prices from 2000 you get $2,724,000. Real GDP for 2000 would simply be the same as its nominal value if 2000 is the base year.
17. Which of the following is true?
a. The civilian labor force includes everyone 16 years or older except those who are serving in the military.
b. The unemployment rate is equal to the number of unemployed divided by the civilian labor force.
c. The unemployment rate overstates the level of unemployment due to its treatment of discouraged workers.
d. (a), (b), and (c)
e. (b) and (c)
Answer: B
(a) is clearly false since we can think of all sorts of people who are excluded from the civilian labor force. (c) is also false since the treatment of discouraged workers (treating them as if they are not part of the civilian labor force) will cause the unemployment rate to be understated. That leaves (b): this is true by definition.
18. Along a given production function
a. Diminishing marginal returns to capital is illustrated.
b. As you hire more and more labor, labor productivity increases.
c. The hiring of additional labor will cause the aggregate production function to shift upwards.
d. Increases in output are possible only through increases in the use of capital or changes in technology.
e. None of the above is true.
Answer: E
(a) is false because along a given production function diminishing marginal returns to labor is illustrated (the production function is drawn assuming constant capital). (b) is false because as you hire more and more labor for a given level of capital and technology, labor productivity will fall. (c) is false since hiring additional labor causes a movement along the aggregate production function. (d) is false since output can be increased by hiring additional units of labor (even though labor productivity will not be as great).
19. In the Classical Model, when the government increases the government deficit (e.g., government spending increases while taxes stay constant) this will
a. Cause interest rates to fall.
b. Cause private investment spending to decrease.
c. Cause the supply of loanable funds curve to shift to the right.
d. Cause the demand for loanable funds curve to shift to the right.
e. Cause the equilibrium quantity of loanable funds to increase.
f. (a), (b), and (d)
g. (b) and (d)
h. (b), (d), and (e)
Answer: H
(a)is false since an increase in the level of the government deficit holding everything else constant will cause the interest rate to increase. (b) is true because the increase in the interest rate will cause private investment to decrease since the cost of investment has risen. (c) is false since the increase in the interest rate will cause a movement along the supply of loanable funds curve. (d) is correct: the demand for loanable funds curve will shift to the right since the government is demanding a higher level of funds at every interest rate. (e) is also true: a shift to the right of the demand curve will result in a higher equilibrium quantity.
20. Suppose that the supply of labor increases while simultaneously the demand for labor decreases. Holding everything else constant, we know
a. That the equilibrium wage will fall while the equilibrium quantity of labor increases.
b. That the equilibrium wage will rise while the equilibrium quantity of labor decreases.
c. That the equilibrium wage and equilibrium quantity of labor will both decrease.
d. That the equilibrium wage and equilibrium quantity of labor will both increase.
e. None of the above.
Answer: E
Since both curves are shifting simultaneously and we do not know the quantitative size of the shifts, this must be a case of indeterminancy. In this case we know categorically that wages will fall, but we cannot know what will happen to the equilibrium quantity of labor. Thus, (e) is the correct answer.
21. Growth in the economy due to increases in the supply of labor, holding everything else constant, will
a. Result in lower wages.
b. Result in higher wages.
c. Result in lower labor productivity.
d. Result in higher labor productivity.
e. (a) and (c)
f. (a) and (d)
g. (b) and (c)
h. (b) and (d)
Answer: E
If the supply of labor shifts out this will cause the equilibrium wage to fall while increasing the equilibrium quantity of labor. Given that capital and technology are held constant, but the amount of labor hired increases this must mean that labor productivity has fallen. Thus, both answers (a) and (c) are correct.
22. Which of the following is true?
a. In the simple circular flow model total spending is equal to total income: this illustrates Say’s Law where supply creates its own demand.
b. Say’s Law is the Classical Model implies that firms in the aggregate can sell their output and that the economy will be at full employment.
c. Say’s Law implies that leakages will equal injections.
d. (a), (b), and (c)
e. (b) and (c)
Answer: D
Say’s Law basically rules out an inequality between supply and demand in the long run: answer (a) speaks to this idea as does (b) and (c).
23. Which of the following is true?
a. If real GDP grows at a faster rate than population during the year then the standard of living in an economy will increase.
b. Unemployment implies wasted resources but does not affect the standard of living.
c. Transactions costs are greater in a barter system than in a system that uses money.
d. The circular flow diagram of the economy provides a simple model of the relationship between the goods market and the product market.
e. All of the above are true.
f. (a), (c), and (d)
g. (c) and (d)
Answer: C
(a) is incorrect due to the imprecision of the language: it would be correct if it referred to the average standard of living. (b) is also true since unemployment implies that we are not maximizing the production of output and therefore we could reach a higher average standard of living. (d) is incorrect because the circular flow model illustrates the relationship between the goods market (or product market) and the factor market (or resource market).
24. An economy at full employment
a. Has eliminated frictional unemployment.
b. Has eliminated structural unemployment.
c. Has minimized seasonal unemployment.
d. Has eliminated cyclical unemployment.
e. All of the above occur at full employment.
Answer: D
This is true by definition.
25. Which of the following is true?
a. The CPI is calculated using a fixed market basket of goods.
b. The CPI overstates inflation due to substitution bias: i.e., it does not allow consumers to substitute relatively cheaper goods for relatively more expensive goods
c. The CPI in the base year equals 100 on a 100-point scale.
d. The CPI is a measure of the price level in the economy.
e. All of the above.
f. (a), (c), and (d)
g. (a) and (c)
Answer: E
These are all definitional statements about the CPI.
26. If the demand for money is greater than the supply of money, we know
a. Interest rates will decrease.
b. People want to buy bonds.
c. People want to sell bonds.
d. (a) and (b)
e. (b) and (c)
Answer: C
If the demand for money is greater than the supply of money, this implies that the interest rate is below the equilibrium level. In order for interest rates to rise people must be wanting to sell their bonds (so that they can hold more money). As more and more bonds are offered for sell this will cause the price of bonds to fall and the interest rate on bonds to rise and thus, the interest rate in the money market to rise toward the equilibrium level. Thus, (a) and (b) must be incorrect.
27. Which of the following is true?
a. In the Classical Model of the economy the labor market is always in equilibrium.
b. In the Classical Model there is no frictional or structural unemployment.
c. The Classical Model always achieves full employment.
d. (b) and (c)
e. (a) and (c)
Answer: E
The Classical Model assumes that all markets clear and that there is a market for every commodity and every resource: this implies that (a) is correct as well as (c). The Classical Model accepts as a definition of full employment the situation where cyclical unemployment, i.e., unemployment related to the business cycle, is zero. It is still possible for there to be frictional or structural unemployment in the Classical Model: thus, (b) is incorrect.
28. In calculating GDP it is important to
a. Avoid double counting: i.e., counting goods as final goods that were used as intermediate goods.
b. Remember to count wage income as well as the prices of final goods and services produced in an economy during the time period.
c. Exclude items that were produced in previous years since GDP counts only current production.
d. Include an approximation of the value of illegal activities since there is a significant amount of production associated with the illegal economy.
e. All of the above are true.
f. (a), (b), and (c)
g. (a), (c), and (d)
h. (a) and (c)
Answer: H
Answers (a) and (c) are true by definition. Answer (b) is false because it is a mix of the factor approach (where wages are included in the calculation) with the expenditure approach. Answer (d) is incorrect since GDP includes only that production that is exchanged in legal, organized markets.
29. Which of the following is true?
a. GDP measured using the expenditure approach sums up business expenditures on land, labor, capital and entrepreneurial ability.
b. GDP measured using the value added approach will yield a different, and less accurate, measure of GDP than will GDP measured using the factor income approach.
c. GDP is always greater than GNP.
d. GDP is equal to the sum of consumption spending, investment spending, government spending and taxation, and net export spending.
e. GDP for a year can be calculated by multiplying the price of each final good or service by the quantity of each final good or service and then summing these products.
Answer: E
(a) is incorrect because this summation is the factor payments approach; answer (b) is incorrect since theoretically all approaches to measuring GDP should yield the same total; (c) is not always true; (d) government spending is included in measuring GDP using this approach, but taxation is not. Answer (e) is true by definition: this is one method of calculating GDP.
30. Suppose Bob loans Joe $100 for a year. Bob charges Joe 10% interest on the loan anticipating that his real return on the loan will be 6%. If inflation for the year is 5%, then
a. Joe will be better off than Bob.
b. Bob will be better off than Joe.
c. Joe will pay Bob $105 at the end of the year.
d. Joe will pay Bob $106 at the end of the year.
e. Joe will pay Bob 11% on the loan.
Answer: A
To answer this question you need to use the Fisher Equation where the real interest rate is equal to the nominal interest rate minus the expected inflation. Bob when he charges Joe 10% nominal interest anticipates that he will earn a real return of 6%: this implies that he expects inflation to be 4% for the time period. Since inflation is actually 5% for the time period, Bob earns 5% real return and is therefore worse off than he anticipated. Thus, Joe is better off than Bob (answer (a)). Answers (c), (d), and (e) are all incorrect since Joe will pay $110 for the loan at the end of the year no matter what the inflation rate is, and the real interest rate that Joe pays will be 5% while the nominal is 10%.
PART II: PROBLEMS (8 POINTS EACH)
1. Suppose there are two countries that both produce bananas and sardines. Both countries face linear production possibility frontiers. Country A can produce 250 bananas and 0 sardines or 0 bananas or 125 sardines or any combination that lies on the line that these two points are on. Country B can produce 400 bananas and 50 sardines or 80 bananas and 400 sardines or any combination that lies on the line that these two points are on. In this problem assume that sardines are measured on the vertical axis and can be abbreviated as S while bananas are measured on the horizontal axis and can be abbreviated as B.
a. (2 points) What is the equation for Country A’s production possibility frontier? Write this equation in slope-intercept form.
S = (-1/2)B + 125 where S = sardines and B = bananas
b. (2 points) What is the equation for Country B’s production possibility frontier? Write this equation in slope-intercept form.
S = (-32/35)B + 487.5
To solve for this equation you need to first calculate slope from the two points you are given in the introduction. Then you can plug in the coordinates of one of these points into the slope intercept form to find the y-intercept. A sketch of the PPF might help to guide you as you make these calculations.
c. (1 point) For country A, what is the opportunity cost of producing 10 more bananas?
O.C. of producing one more banana is ˝ sardine, so the O.C. of producing 10 more bananas is 10(1/2) = 5 sardines
d. (1 point) For country B, what is the opportunity cost of producing 20 more sardines?
O.C. of producing one more sardine is 4/7/bananas, so the OC. of producing 20 more sardines is 20(4/7) = 18.3 bananas
e. ( 1 point) Which country has the comparative advantage in producing sardines?
Country B: the O.C. for B of producing 1 sardine is 4/7 bananas while for A, the O.C. of producing 1 sardine is 2 bananas.
f. (1 point) Which country has the absolute advantage in producing sardines?
Country B: B can absolutely produce more bananas than can country A
2. Suppose there are three individuals in a market. Individual A’s demand for the good is given by P = -2Q + 100; Individual B’s demand for the good is given by P = -2Q + 100; and Individual C’s demand for the good is given by P = -4Q + 200.
a. (3 points) What is the equation for the market demand for this good if there are only these three individuals in the market? (hint: you will need to specify a range of quantities that corresponds to a particular market demand curve)
For quantities less than or equal to 25 the demand curve is: P = -4Q + 200
For quantities greater than or equal to 25 the demand curve is: P = (-4/5)! + 120
To see this I would suggest drawing three individual demand curves and then a fourth graph where you horizontally sum these three individual demand curves. When you do this you will get a demand curve that intersects the y-axis at 200, goes through point (25, 100) and at that point has a kink (where the slope of the linear demand curve changes: you actually have two linear segments joined at the point 25, 100). The bottom part of the demand curve intersects the x-axis at (150,0). This question would be hard to answer without a sketch.
b. (1 point) If the market price is $50, how many units will Individual A demand?
25 units: to find this answer put a price of $50 into Individual A’s demand curve and solve for the quantity.
c. (1 point) If the market price is $50, how many units will Individual B demand?
25 units: to find this answer put a price of $50 into Individual B’s demand curve and solve for the quantity.
d. (1 point) If the market price is $50, how many units will Individual C demand?
37.5 units: to find this answer put a price of $50 into Individual C’s demand curve and solve for the quantity.
e. ( 2 points) If the market supply curve is given by P = Q + 30, then what is the equilibrium price and quantity in this market?
The equilibrium quantity will be 50 units and the equilibrium price will be 80. Set the supply curve equal to the demand curve P = (-4/5)Q + 120 to get this answer.
3. Suppose there are eight individuals in an economy. Each of these individuals is described below. After each individual is a blank: on this blank identify whether or not this individual is employed (E), unemployed (U), or not in the civilian labor force (NLF).
a. (1 point) Joe is fifteen years old and works at his parents restaurant without pay sixteen hours a week. ______NLF___________
b. (1 point) Mike is seventeen years old and works at his parents dry cleaners without pay five hours a week. ______NLF____________
c. (1 point) Claire, a homemaker for seventeen years, applied for a job three weeks ago. ___________U______________
d. (1 point) Susy is under investigation for alleged wrongdoing and is absent from her job without pay. __________E_______________
e. ( 1point) Clark would like to find work, but has not applied for a job in six weeks due to sickness and some traveling he has been doing. _________NLF________
f. (1 point) Jerry is in the military and learning to fly jets. ________NLF_____________
g. (1 point) Jimbo is institutionalized due to his mental problems. _________NLF______________
PART III: ESSAY (16 POINTS)
Thus far in the semester we have discussed many topics: select three broad ideas that you have been introduced to and discuss their relevance and importance. Be sure to identify the three ideas and then provide a supporting argument for why each is important. Your answer will be graded on its clarity and the strength of the arguments you offer.