 |
1 | |
The key issues of macroeconomics are |
|
| | A) | unemployment |
| | B) | inflation |
| | C) | economic growth |
| | D) | all of the above |
|
2 | |
In an economy, measuring (1)total value added, (2)total spending on final goods and (3)total factor earnings gives the result that |
|
| | A) | 3 > 2 > 1 |
| | B) | 3 = 2 = 1 |
| | C) | 3 < 2 < 1 |
| | D) | any measure can be larger or smaller than any other |
|
3 | |
In the economy when a steel producer sells steel to a car producer, it is regarded as ________ |
|
| | A) | a final good |
| | B) | an intermediate good |
| | C) | an injection |
| | D) | a leakage |
|
4 | |
Leakages from the circular flow are ____________, ____________ and ____________ |
|
| | A) | investment, savings, government expenditure |
| | B) | savings, taxes net of subsidies, imports |
| | C) | consumption, investment, government expenditure |
| | D) | consumption, taxes, imports |
|
5 | |
Injections into the circular flow are ___________, _____________ and _____________ |
|
| | A) | consumption, investment, exports |
| | B) | investment, exports, transfer payments |
| | C) | investment, government expenditure, exports |
| | D) | taxes, exports, transfer payments |
|
6 | |
In the circular flow we would expect leakages to ____________ injections |
|
| | A) | equal |
| | B) | be less than |
| | C) | be greater than |
| | D) | be less or greater than |
|
7 | |
Nominal GNP measures income ____________ |
|
| | A) | at the present time |
| | B) | corrected for tax changes |
| | C) | corrected for changes in interest rates |
| | D) | at current prices |
|
8 | |
Real GNP measures income _____________ |
|
| | A) | including non-market activities |
| | B) | adjusted for inflation |
| | C) | including externalities |
| | D) | including tax evasion |
|
9 | |
Real GNP is a crude measure of national welfare because it excludes |
|
| | A) | consumption |
| | B) | investment |
| | C) | exports |
| | D) | work in the home |
|
10 | |
When we refer to the hidden economy we mean unrecorded income owing to _________ |
|
| | A) | tax evasion |
| | B) | poor statistics |
| | C) | the lags between statistical collection and publication |
| | D) | smuggling |
|
11 | |
In the circular flow of income, saving is an injection and investment is a leakage |
|
| | A) | TRUE |
| | B) | FALSE |
|
12 | |
Gross national product adjusts GDP for net property income from abroad |
|
| | A) | TRUE |
| | B) | FALSE |
2002 A McGraw-Hill Online Learning Centre