econ major field test - college of charlestonwalkerd.people.cofc.edu/400/ets_info_2016.pdf · econ...

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Doug Walker <[email protected]> ECON Major Field Test 1 message Snyder, Marcia Susan <[email protected]> Mon, Feb 1, 2016 at 3:23 PM To: "Walker, Douglas M" <[email protected]>, "Madariaga, Jessica F" <[email protected]> Cc: "Snyder, Marcia Susan" <[email protected]>, "Blackwell, Calvin" <[email protected]> Doug and Jessica, Thank you so very much for your support of the MFT assessment. This assessment opportunity helps the School to improve our degrees and courses and ensure students learn what they need to be competitive in the global job market. I show you have a total of 22 students enrolled between the two sections of ECON 400 and ECON 419. One of your mutual students () is a non- degree seeking student and should not take the test. If you want him to take the test please let me know so that I include him on the student mailing and sign up list. The ETS Major Field Test in Economics contains 90 multiple-choice questions designed to measure a student’s subject knowledge and ability to apply facts, concepts, theories, and analytical methods. Some questions are grouped in sets and based on diagrams, charts and data tables. The questions represent a wide range of difficulty and cover depth and breadth in assessing students’ achievement levels. The department has also included 20 additional multiple-choice questions taken from departmental principles test banks. These are answered separately in the ETS browser after the 90 ETS questions have been completed. The two hour ETS assessment is completed online in two one-hour timed parts. Students will have an additional 30+ minutes to complete the 20 additional multiple choice questions. Since no calculators are allowed, we don’t anticipate any complicated formulas. Scrap paper will be available to complete calculations. You can check out some sample questions using the following link or viewing the attached PDF. I also included an additional PDF providing a more complete description of the breakdown of the test. Students will be able to see their achievement score on a naƟonal level as soon as they complete the test. I will convert these to percenƟle scores and report both to you once the test is complete. I will also provide the details of the assessment indicators to you once all of the cohorts are closed. Students who score well on this test may want to add it to their resume. The 20 addiƟonal departmental quesƟons are not graded by individual student so no score will appear for those quesƟons. Final scores are based on the number of quesƟons answered correctly. There is no penalty for guessing so students should make an aƩempt to select an answer for every quesƟon. I have scheduled the following dates to administer the tests: Tuesday, March 22 nd at 3:00 pm in Tate 30428 seats Wednesday, March 23 rd at 5:00 pm in Tate 30428 seats Thursday, March 24 th at 3 pm in Tate 13040 seats Monday, March 28 th at 5:00 pm in Tate 30428 seats Tuesday, March 29 th at 3:00 pm in Tate 30428 seats Wednesday, March 30 th at 5:00 pm in Tate 30428 seats Thursday, March 31 st at 3:00 pm in Tate 13040 seats Tuesday, April 5 th at 3:00 pm in Tate 30428 seats Wednesday, April 6 th at 5:00 pm in Tate 30428 seats Thursday, April 7 th at 3:00 pm in Tate 13040 seats I have signup sheets prepared and am happy to come to your class to pass around the signup sheets and let the students know about the test. Or if you prefer I can provide the signup sheets to you to pass around to your students. Please let me know what you prefer and the date/Ɵme and place of your class if you want me to stop by. On the day of the test, students must arrive on Ɵme and check in with the Proctor. We will provide the code and direcƟons to access the test. Students will launch the ETS Browser on the computer’s desktop. Once the students log in they will be asked to complete demographic informaƟon. AŌer compleƟng this informaƟon and clicking the submit buƩon a screen will pop up “waiƟng for proctor approval”. When the proctor approves the session a welcome screen will display and student should click on the “Start Online” link. Students will see a series of test direcƟons and informaƟon screens and may take a test tutorial. Please note: when taking the test students may only use the mouse. If any keyboard keys are hit once the test is launched the test locks and the proctor will need to restart the test. The test tutorial has a Ɵme limit of 20 minutes and is not scored. It is recommended that students complete the sample test to become familiar with the online test setup. The actual test is organized in two secƟons each with a Ɵme limit of one hour. Students will have approximately 30+ minutes to complete the departmental quesƟons. Gmail - ECON Major Field Test https://mail.google.com/mail/u/0/?ui=2&ik=5440a098b8&view=pt&sea... 1 of 2 2/9/2016 1:08 PM

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Page 1: ECON Major Field Test - College of Charlestonwalkerd.people.cofc.edu/400/ETS_info_2016.pdf · ECON Major Field Test 1 message Snyder, Marcia Susan  Mon, Feb

Doug Walker <[email protected]>

ECON Major Field Test1 message

Snyder, Marcia Susan <[email protected]> Mon, Feb 1, 2016 at 3:23 PMTo: "Walker, Douglas M" <[email protected]>, "Madariaga, Jessica F" <[email protected]>Cc: "Snyder, Marcia Susan" <[email protected]>, "Blackwell, Calvin" <[email protected]>

Doug and Jessica,

Thank you so very much for your support of the MFT assessment. This assessment opportunity helps the School to improve our degrees andcourses and ensure students learn what they need to be competitive in the global job market.

I show you have a total of 22 students enrolled between the two sections of ECON 400 and ECON 419. One of your mutual students () is a non-degree seeking student and should not take the test. If you want him to take the test please let me know so that I include him on the student mailing and sign up list.

The ETS Major Field Test in Economics contains 90 multiple-choice questions designed to measure a student’s subject knowledge and ability toapply facts, concepts, theories, and analytical methods. Some questions are grouped in sets and based on diagrams, charts and data tables. Thequestions represent a wide range of difficulty and cover depth and breadth in assessing students’ achievement levels. The department has alsoincluded 20 additional multiple-choice questions taken from departmental principles test banks. These are answered separately in the ETS browserafter the 90 ETS questions have been completed.

The two hour ETS assessment is completed online in two one-hour timed parts. Students will have an additional 30+ minutes to complete the 20additional multiple choice questions. Since no calculators are allowed, we don’t anticipate any complicated formulas. Scrap paper will be available tocomplete calculations. You can check out some sample questions using the following link or viewing the attached PDF. I also included an additionalPDF providing a more complete description of the breakdown of the test.

Students will be able to see their achievement score on a na onal level as soon as they complete the test.  I will convert these to percen lescores and report both to you once the test is complete. I will also provide the details of the assessment indicators to you once all of the cohortsare closed.  Students who score well on this test may want to add it to their resume. The 20 addi onal departmental ques ons are not gradedby individual student so no score will appear for those ques ons.

Final scores are based on the number of ques ons answered correctly. There is no penalty for guessing so students should make an a emptto select an answer for every ques on.

I have scheduled the following dates to administer the tests:

Tuesday, March 22nd at 3:00 pm in Tate 304‐ 28 seats

Wednesday, March 23rd at 5:00 pm in Tate 304‐ 28 seats

Thursday, March 24th at 3 pm in Tate 130‐ 40 seats

Monday, March 28th at 5:00 pm in Tate 304‐ 28 seats

Tuesday, March 29th at 3:00 pm in Tate 304‐ 28 seats

Wednesday, March 30th at 5:00 pm in Tate 304‐ 28 seats

Thursday, March 31st at 3:00 pm in Tate 130‐ 40 seats

Tuesday, April 5th at 3:00 pm in Tate 304‐ 28 seats

Wednesday, April 6th at 5:00 pm in Tate 304‐ 28 seats

Thursday, April 7th at 3:00 pm in Tate 130‐ 40 seats

I have sign‐up sheets prepared and am happy to come to your class to pass around the sign‐up sheets and let the students know about the test.Or if you prefer I can provide the sign‐up sheets to you to pass around to your students. Please let me know what you prefer and the date/ meand place of your class if you want me to stop by.

On the day of the test, students must arrive on  me and check in with the Proctor. We will provide the code and direc ons to access the test.Students will launch the ETS Browser on the computer’s desktop.  Once the students log in they will be asked to complete demographicinforma on. A er comple ng this informa on and clicking the submit bu on a screen will pop up “wai ng for proctor approval”. When theproctor approves the session a welcome screen will display and student should click on the “Start Online” link.

Students will see a series of test direc ons and informa on screens and may take a test tutorial. Please note: when taking the test students mayonly use the mouse. If any keyboard keys are hit once the test is launched the test locks and the proctor will need to restart the test.  The testtutorial has a  me limit of 20 minutes and is not scored. It is recommended that students complete the sample test to become familiar with theonline test set‐up. The actual test is organized in two sec ons each with a  me limit of one hour. Students will have approximately 30+  minutesto complete the departmental ques ons.

Gmail - ECON Major Field Test https://mail.google.com/mail/u/0/?ui=2&ik=5440a098b8&view=pt&sea...

1 of 2 2/9/2016 1:08 PM

walkerd
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Accepted set by walkerd
Page 2: ECON Major Field Test - College of Charlestonwalkerd.people.cofc.edu/400/ETS_info_2016.pdf · ECON Major Field Test 1 message Snyder, Marcia Susan  Mon, Feb

Once the sample test is completed the actual test will begin with a direc ons page. A er reading the direc ons student should click next and thefirst ques on will appear. Time remaining appears in the upper right‐hand corner of the test. Naviga on bu ons appear on the lower blue bar(Exit, Mark, Review, Help, Back, Next). An explana on of each bu on’s func on is on page three of the a ached computer readinessinstruc ons PDF. Once the first sec on is completed students will be prompted to review and exit the first sec on. Here they will be prompted tocon nue to sec on two or exit to complete at another  me. Students will want to con nue to sec on two. Note: if students require a restroombreak this is the  me to take a short break. At the end of the second sec on the student will exit and the test will be scored. The student cannotreturn to either sec on once they exit that sec on. They will then see an addi onal ques on answer grid on which to record the answers to thedepartmental ques ons once they exit sec on two.  The student will be asked some exit evalua on ques ons and then be able to see their rawscore for the ETS por on of the test. If they would like their percen le score please have them send an email to me [email protected] ng it.

Thank you again for your support.

Marcia

Marcia S. Snyder, MSc ‘93

Assistant Dean of Student Learning and Accreditation

School of Business

College of Charleston

66 George Street

Charleston, SC 29424-0001

Office: Tate 313

5 Liberty Street

Charleston, SC 29401

Phone: 843-953-4818

Fax: 843-953-0828

website: http://sb.cofc.edu

SBNews: http://blogs.cofc.edu/sbe/

Facebook: http://www.facebook.com/CofCSB

Our progress as a nation can be no swifter than our progress in education. The human mind is our fundamental resource.

John F. Kennedy , special message to the Congress on Education , 20 February 1961

3 attachments

MFT_Economics_Sample_Items_08 (1).pdf113K

mft_testdesc_economics_4emf.pdf269K

ETS MFT ECON What to Expect.pdf263K

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2 of 2 2/9/2016 1:08 PM

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Find out how to prove — and improve — the effectiveness of your Economics program with the ETS® Major Field Tests.

Content ValidityThe Major Field Test in Economics, first administered in 1989, assesses

mastery of concepts, principles and knowledge by senior-level undergraduates.

To ensure fairness and content relevance, the test is revised approximately every five years.

Developed by Leading Educators in the FieldExperienced faculty members representing all the relevant areas of the discipline

determine test specifications, questions and types of scores reported. ETS assessment

experts subject each question to rigorous tests of sensitivity and reliability. Every effort is

made to include questions that assess the most common and important topics and skills.

In addition to factual knowledge, the test evaluates students’ abilities to analyze and

solve problems, understand relationships and interpret material. Questions that require

interpretation of graphs, diagrams and charts are included. Academic departments may

add up to two subgroups and as many as 50 additional locally written questions to test

areas of the discipline that may be unique to the department or institution.

National Comparative DataA Comparative Data Guide, published each year, contains tables of scaled scores and

percentiles for individual student scores, departmental mean scores and any subscores

or group assessment indicators that the tests may support. The tables of data are drawn

from senior-level test takers at a large number of diverse institutions. Nearly 1,000 colleges

and universities employ one or more of the Major Field Tests for student achievement and

curriculum evaluation each year.

For more information about the MFT in Economics:

Phone: 1-800-745-0269 Email: [email protected] Visit: www.ets.org/mft

Educational Testing ServiceRosedale RoadPrinceton, NJ 08541

Who develops the MFT in Economics?

Individuals who serve or recently have served on the Committee for the MFT in Economics are faculty members from the following institutions:

Davidson College

Hanover College

Ithaca College

Occidental College

Rutgers, The State University of New Jersey

University of North Carolina at Charlotte

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I. Introductory Concepts (1–4%)

A. Scarcity

B. Production possibilities

C. Opportunity cost

D. Incentives and property rights

E. Economic modeling

F. Positive and normative statements

II. Microeconomics (42–47%)

A. Supply and Demand

1. Market equilibrium 2. Consumer and producer surplus 3. Comparative statics

B. Elasticity

1. Demand elasticity (price elasticity; income elasticity; cross-price elasticity; price elasticity, marginal revenue and total revenue)

2. Supply elasticity

C. Consumer Theory

1. Utility function and indifference curves 2. Budget constraint 3. Utility maximization 4. Income and substitution effects 5. Individual and market demand

D. Production Theory

1. Production Function (short-run; long-run)

2. Accounting vs. Economic Costs 3. Short-run costs 4. Isoquant and isocost analysis

(cost minimization; effects of changes in factor prices; factor substitution)

5. Long-run costs (returns to scale; returns to scope)

E. Market Structures

1. Theory of the firm and transactions costs 2. Profit maximization 3. Perfect competition 4. Monopoly 5. Monopolistic competition 6. Oligopoly and game theory 7. Efficiency and welfare

F. Factor Markets

1. Marginal revenue product and labor demand

2. Labor supply 3. Labor markets (competitive market;

monopsony) 4. Capital market (physical capital; financial

capital; present value) 5. Economic rent 6. Income distribution

G. General Equilibrium and Welfare Analysis (Edgeworth Box; Pareto Optimality)

H. Market Failure and Government Intervention

1. Price ceilings and price floors 2. Taxes and subsidies 3. Regulation and anti-trust laws 4. Externalities 5. Public goods 6. Public Choice Theory 7. Equity and redistribution

I. International Trade

1. Absolute and comparative advantage 2. Trade restrictions – tariff and nontariff

J. Information Economics

1. Risk and uncertainty 2. Asymmetric information

III. Macroeconomics (38–43%)

A. Circular Flow

B. Economic Measurement

1. GDP (accounting methods; business cycles) 2. Price indices and inflation 3. Real and nominal values 4. Labor force and unemployment

C. Aggregate Demand and Aggregate Supply Analysis

1. Aggregate demand (definition and components of aggregate demand; derivation of aggregate demand)

2. Aggregate supply (definition of aggregate supply; short-run aggregate supply; long-run aggregate supply)

3. Macroeconomic equilibrium (wage and price flexibility; role of expectations; Keynesian and Classical analysis; short- and long-run equilibrium; short- and long-run Phillips Curves)

D. Money and Financial Markets

1. Definition and role of money 2. Supply of money (definitions of money

supply; commercial banks/financial institutions; central bank functions; deposit creation)

3. Demand for money 4. Money market equilibrium 5. Interest rates and present value 6. Quantity theory of money 7. Loanable funds market

E. IS/LM Analysis

F. Macroeconomic Policy Analysis

1. Policy objectives 2. Fiscal policy 3. Monetary policy 4. Economic policy in an open economy

G. Economic Growth and Development

1. Sources of economic growth 2. Solow model 3. Growth policies H. International Finance

1. Balance of payments accounts 2. Exchange rates and capital flows

(flexible exchange rates; fixed exchange rates)

IV. Statistics and Econometrics (10–15%)

A. Concepts of probability

B. Descriptive statistics

C. Hypothesis testing

D. Classic linear regression model (assumptions of estimators; properties of estimators; interpretations of estimators)

V. Quantitative Analysis (25–35% across all content areas)

Test Content – Economics

The Major Field Test in Economics contains 90 multiple-choice questions, some of which are grouped in sets and based on such materials as diagrams, expository paragraphs, sets of equations and tables of data. Departments or schools choose when and where to administer the tests. This test must be given by a proctor. It is designed to take two hours. The content categories and approximate distribution of questions among them are outlined below.

How scores for the Major Field Test in Economics are reported

Total Score – Reported for each student and summarized for the group

Subscores – Reported for each student and summarized for the group

• Microeconomics (41) • Macroeconomics (35)

Assessment Indicators – Reported for the group* only

• Quantitative Analysis (34) • International Issues (9)

Numbers in parentheses are the approximate number of questions in each category.

* A minimum of five (5) students is required for assessment indicators to be reported.

Copyright © 2014 by Educational Testing Service. All rights reserved. ETS, the ETS logo and LISTENING. LEARNING. LEADING. are registered trademarks of Educational Testing Service (ETS). (4KMF) 27513

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Major Field Test in Economics Sample Questions

The following questions illustrate the range of the test in terms of the abilities measured, the disciplines covered, and the difficulty of the questions posed. They should not, however, be considered representative of the entire scope of the test in either content or difficulty. An answer key follows the questions.

1. Firm X currently employs labor and capital such that

the marginal product of capital is twice the marginal product of labor. If the price of a unit of labor is $8.00 and the price of a unit of capital is $4.00, Firm X can reduce costs while producing the same level of output by

(A) using more labor and less capital (B) using more capital and less labor (C) decreasing its use of both capital and labor (D) increasing its use of both capital and labor (E) maintaining its employment of capital and labor

at current levels

2. According to the diagram above depicting a

consumer's demand for knishes, if the price of a knish is P1, the consumer's surplus will be equal to the area

(A) XYQ1Q2 (B) XZP1P2 (C) XYP1P2 (D) WXP2 (E) WYP1

3. Within the Keynesian framework, which of the

following is true?

(A) At a given level of income, the amount savers intend to save and the amount investors intend to invest may or may not be equal.

(B) At any interest rate, the amount savers intend to save and the amount investors intend to invest are always equal.

(C) The marginal propensity to save is always equal to 1.

(D) Macroeconomic equilibrium at full employment is never achievable.

(E) Full-employment equilibrium would always tend to occur in the short run as well as the long run.

4. Which of the following is true of a negatively sloped

labor-supply curve?

(A) It implies that an individual's work effort is not sensitive to a change in the wage rate.

(B) It results when the income effect dominates the substitution effect.

(C) It implies that the marginal product of labor is declining.

(D) It cannot occur if leisure is a normal good. (E) It implies positive elasticity of labor supply.

5. If the growth rate of the labor force exceeds the

growth rate of output, which of the following will be true in the long run?

(A) Wage rates will tend to rise. (B) Wage rates will tend to remain constant. (C) Wage rates will tend to fall. (D) The number of unemployed people will fall. (E) The level of employment does not change.

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Confidential and Proprietary.

Copyright © 2014 Educational Testing Service Permission to reproduce this document is hereby granted to institutions (colleges and universities) administering the Major Field Tests for internal use only. No commercial or further distribution is permitted. Other persons or agencies wishing to obtain

permission to reproduce this material may write to the Permissions Administrator at Educational Testing Service, Princeton, New Jersey 08541

6. Last year the demand for a product was 105,000 units. In order to test the alternative hypothesis that demand has changed this year, which of the following would be the null hypothesis statement?

(A) Demand is increasing or remaining constant. (B) Last year's demand is less than this year's

demand. (C) Demand has not changed this year. (D) Demand is less this year than last year. (E) The level of significance is 0.05.

7. The absolute value of the slope of a production

isoquant is equal to the

(A) ratio of the prices of the two inputs. (B) amount of one input used divided by the amount

of the other input (C) ratio of the marginal utilities of the two inputs (D) ratio of the marginal products of the two inputs (E) ratio of the marginal costs of the two inputs

8. Suppose that median disposable income measured in

current dollars is $10,000 and $20,000 for 1978 and 1988, respectively. The economy's price index is 100 in the base year of 1978 and 250 in 1988. Which of the following is true?

(A) Inflation, as measured by the price index, rose 250 percent over the period.

(B) Nominal median disposable income rose 50 percent over the period.

(C) Real median disposable income rose 250 percent over the period.

(D) Real median disposable income fell 50 percent over the period.

(E) The $10,000 in 1978, measured in 1988 dollars, is equivalent to $25,000.

9. The diagram above shows the IS and LM curves for

an economy. Which of the points characterizes equilibrium in the money market, and desired investment in excess of desired saving?

(A) A (B) B (C) C (D) D (E) E

10. The following data show test scores on an economics

exam for seven college students. Which of the following are the correct calculations for the mean, median, and mode of the distribution?

Student Score A 40 B 60 C 20 D 50 E 10 F 20 G 80

Mean Median Mode (A) 50 40 30 (B) 40 40 20 (C) 40 20 10 (D) 30 50 20 (E) 20 40 20

Page 7: ECON Major Field Test - College of Charlestonwalkerd.people.cofc.edu/400/ETS_info_2016.pdf · ECON Major Field Test 1 message Snyder, Marcia Susan  Mon, Feb

Confidential and Proprietary.

Copyright © 2014 Educational Testing Service Permission to reproduce this document is hereby granted to institutions (colleges and universities) administering the Major Field Tests for internal use only. No commercial or further distribution is permitted. Other persons or agencies wishing to obtain

permission to reproduce this material may write to the Permissions Administrator at Educational Testing Service, Princeton, New Jersey 08541

11. If the demand for a product increases and its supply decreases, which of the following will happen to the equilibrium price and quantity?

Equilibrium Equilibrium Price Quantity (A) Increase Indeterminate (B) Increase Remain constant (C) Increase Increase (D) Decrease Indeterminate (E) Decrease Decrease 12. A demand function for a good is given by

Q = 100 - 4P2 , where Q = quantity demanded per unit of time and P = the price per unit. At a price of $4, the absolute value of the price elasticity of demand is approximately equal to which of the following? (A) ∞ (B) 36.0 (C) 3.6 (D) 1.0 (E) 0.28

13. In a graph of a consumer’s budget constraint, the

amount of good X is measured along the horizontal axis, while the amount of good Y is measured along the vertical axis. The unit prices of good X and Y are Px and Py, respectively. The slope of the budget constraint is

(A) ΔX/ΔY (B) -X/Y (C) -Y/X (D) -Py/Px

(E) -Px/Py 14. A perfectly competitive firm’s demand curve for

labor is downward sloping because

(A) the firm must lower price to sell more units of output

(B) the marginal product of labor declines as more labor is hired

(C) the price of labor is bid up as the firm hires more labor

(D) the quality of labor declines as full employment is attained

(E) less labor becomes available as the wage rate falls

Page 8: ECON Major Field Test - College of Charlestonwalkerd.people.cofc.edu/400/ETS_info_2016.pdf · ECON Major Field Test 1 message Snyder, Marcia Susan  Mon, Feb

Confidential and Proprietary.

Copyright © 2014 Educational Testing Service Permission to reproduce this document is hereby granted to institutions (colleges and universities) administering the Major Field Tests for internal use only. No commercial or further distribution is permitted. Other persons or agencies wishing to obtain

permission to reproduce this material may write to the Permissions Administrator at Educational Testing Service, Princeton, New Jersey 08541

15. In national income accounting, gross private

domestic investment would include the purchase of

(A) Treasury bills by commercial banks (B) Treasury bills by an automobile company (C) corporate bonds by a household (D) a new car by a household (E) a new home by a household

16. To internalize external costs that an industry

generates, the government should do which of the following?

(A) Impose a tax on producers to correct for the

underallocation of resources to this industry. (B) Grant a subsidy to producers to correct for the

underallocation of resources to this industry. (C) Impose a tax on producers to correct for the

overallocation of resources to this industry (D) Grant a subsidy to producers to correct for the

overallocation of resources to this industry. (E) Impose a ceiling on prices to correct for the

overallocation of resources to this industry. 17. Assume that the United States and Mexico are major

trading partners. The United States dollar will appreciate in relation to the Mexican peso under which of the following conditions?

(A) The United States demand for Mexican goods

increases. (B) The inflation rate in the United States is higher

than the inflation rate in Mexico. (C) United States tourists increase their travel to

Mexico. (D) United States businesses increase their

investment in Mexico. (E) Real interest rates in the United States rise

relative to those in Mexico.

18. When the Federal Reserve increases the supply of

money, the interest rate and the quantity of money demanded will change in which of the following ways?

Quantity of Interest Rate Money Demanded

(A) Decrease Decrease (B) Decrease Increase (C) Decrease No change (D) Increase Decrease (E) Increase Increase

19. If the government sets a price floor above the market

equilibrium price of eggs, which of the following will occur?

(A) An excess demand for eggs (B) An excess supply of eggs (C) An increase in the supply of eggs (D) An increase in tax revenues for the

government (E) A decrease in the demand for eggs

20. Consider a multiple regression model relating soft

drink delivery time (y) to number of cases delivered (x1) and a dummy variable for snow and ice (x2 ). x2 is 1 when the delivery route is snowy or icy and 0 otherwise. The estimated regression model is

ŷ = 20 + 2x1 + 10x2 + 1x1x2.

The regression indicates that the mean delivery time ŷ for 10 cases when there is snow or ice on the route is

(A) 20 (B) 30 (C) 40 (D) 50 (E) 60

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Confidential and Proprietary.

Copyright © 2014 Educational Testing Service Permission to reproduce this document is hereby granted to institutions (colleges and universities) administering the Major Field Tests for internal use only. No commercial or further distribution is permitted. Other persons or agencies wishing to obtain

permission to reproduce this material may write to the Permissions Administrator at Educational Testing Service, Princeton, New Jersey 08541

21. Assume that total cost for a monopolist is constant

and equal to $3,000, regardless of the level of output. When the monopolist produces the profit-maximizing output level, elasticity of demand and marginal revenue will be which of the following?

Elasticity Marginal of Demand Revenue

(A) Elastic Zero (B) Elastic Positive (C) Inelastic Negative (D) Unitary Positive (E) Unitary Zero

22. If a resource is scarce, economic decision makers must

(A) choose among alternative uses of the resource (B) increase the price of the resource above the

market equilibrium (C) impose an upper limit on how much of the

resource each individual can purchase (D) subsidize producers of the resource and its

substitutes (E) levy a tax on use of the resource

23. Which of the following events would decrease the

money supply?

(A) Banks increasing their amount of excess reserves (B) The Federal Reserve lowering the required

reserve rate (C) The Federal Reserve buying government

securities on the open market (D) The public holding more funds in demand

deposits, as opposed to cash (E) Banks experiencing an increased demand for

loans

Page 10: ECON Major Field Test - College of Charlestonwalkerd.people.cofc.edu/400/ETS_info_2016.pdf · ECON Major Field Test 1 message Snyder, Marcia Susan  Mon, Feb

Confidential and Proprietary.

Copyright © 2014 Educational Testing Service Permission to reproduce this document is hereby granted to institutions (colleges and universities) administering the Major Field Tests for internal use only. No commercial or further distribution is permitted. Other persons or agencies wishing to obtain

permission to reproduce this material may write to the Permissions Administrator at Educational Testing Service, Princeton, New Jersey 08541

24. In the country of Zana, a unit of labor can produce 4 units of good X or 2 units of good Y; in the country of Bren, a unit of labor can produce 2 units of good X or 1 unit of good Y. Which of the following is true?

(A) Bren has absolute advantage in producing both

goods X and Y. (B) Bren has comparative advantage in producing

good Y. (C) Zana has comparative advantage in producing

good Y. (D) Bren should export good X to Zana. (E) Bren and Zana cannot benefit from trading with

each other. 25. Which of the following best exemplifies moral

hazard?

(A) When quality cannot be judged by buyers, only owners of low-quality used cars offer their cars for sale.

(B) People are willing to buy a $1 lottery ticket to get a small chance at winning a large jackpot, even though the expected value of the chance is less than $1.

(C) Sellers of high-quality products are willing to offer product warranties.

(D) People who are less healthy are more likely to buy health insurance.

(E) Bank loan officers are more likely to make risky loans if their depositors’ money is federally insured.

ANSWER KEY 1. B 14. B 2. E 15. E 3. A 16. C 4. B 17. E 5. C 18. B 6. C 19. B 7. D 20. E 8. E 21. E 9. D 22. A 10. B 23. A 11. A 24. E 12. C 25. E 13. E

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ETS Major Field Test in Economics What to Expect: The ETS Major Field Test in Economics contains 90 multiple-choice questions designed to measure a student’s subject knowledge and ability to apply facts, concepts, theories, and analytical methods. Some questions are grouped in sets and based on diagrams, charts and data tables. The questions represent a wide range of difficulty and cover depth and breadth in assessing students’ achievement levels. The department has also included 20 additional multiple-choice questions taken from departmental principles test banks. These are answered separately in the ETS browser after the 90 ETS questions have been completed.

The two hour assessment is completed online in two one-hour parts. Students will have an additional 30+ minutes to complete the 20 additional multiple choice questions. Since no calculators are allowed, we don’t anticipate any complicated formulas. Scrap paper will be available to complete calculations. You can check out some sample questions using the following link.

Economics Sample Test:

http://www.ets.org/Media/Tests/MFT/pdf/2008/MFT_Economics_Sample_Items_08.pdf

Students will be able to see their achievement score on a national level as soon as they complete the test. I will convert these to percentile scores and report both to you once the test is complete. I will also provide the details of the assessment indicators to you once all of the cohorts are closed. Students who score well on this test may want to add it to their resume. The 20 additional departmental questions are not graded by individual student so no score will appear for those questions.

Final scores are based on the number of questions answered correctly. There is no penalty for guessing so students should make an attempt to select an answer for every question.

On the day of the test, students must arrive on time and check in with the Proctor. We will provide the code and directions to access the test. Students will launch the ETS Browser on the computer’s desktop. Once the students log in they will be asked to complete demographic information. After completing this information and clicking the submit button a screen will pop up “waiting for proctor approval”. When the proctor approves the session a welcome screen will display and student should click on the “Start Online” link.

Students will see a series of test directions and information screens and may take a test tutorial. Please note: when taking the test students may only use the mouse. If any keyboard keys are hit once the test is launched the test locks and the proctor will need to restart the test. The test tutorial has a time limit of 20 minutes and is not scored. It is recommended that students complete the sample test to become familiar with the online test set-up. The actual test is organized in two sections each with a time limit of one hour.

Once the sample test is completed the actual test will begin with a directions page. After reading the directions student should click next and the first question will appear. Time remaining appears in the upper right-hand corner of the test. Navigation buttons appear on the lower blue bar (see below- Exit, Mark, Review, Help, Back, Next). Once the first section is completed

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students will be prompted to review and exit the first section. Here they will be prompted to continue to section two or exit to complete at another time. Students will want to continue to section two. Note: if students require a restroom break this is the time to take a short break. At the end of the second section the student will exit and the test will be scored. The student cannot return to either section once they exit that section. They will then see an additional question answer grid on which to record the answers to the departmental questions once they exit section two.

Finally, the student will be asked some exit evaluation questions and then be able to see their raw score. If they would like their percentile score please have them send an email to me [email protected] requesting it.

The School of Business faculty thank you for your participation in the ETS Major Field Test assessment. We ask you to do your best and thoughtfully answer every question.

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This assessment is very important to the School of Business. We use this data to improve our degree programs and courses making your degree more valuable. Additionally, only the aggregate data by major (not individual student data) is reported to the College of Charleston’s SACSCOC regional accreditation and AACSB International Business and Accounting accreditation as evidence of quality and continuous improvement in our programs. Thank you again!