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# 2nd quiz ECO403 - Macroeconomics Fall 2013

open at December 10, 2013 and last date to attempt quiz will be December 12, 2013.

Quiz will be based on Multiple Choice Questions (MCQs). Covering video Lectures 1 to 17.

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innocent dolly...sam rao..Nomi gill....S khan...hifiza dua...sadia....n every one aa jaooo

quiz time

a gaye hein

sam rao kn ?

The ---------refers to the separation of ------and ----------- variables.

Classical dichotomy; real; nominal

Keynes dichotomy; dependent; independent

Classical dichotomy; exogenous; endogenous

Classical dichotomy; real wages; real

Which one of following is correct equation?

Y = C + I + G + NX

Y = C + S + I + NX

Y = C + T + G + NX

Y = C + T + I + G + NX

The GDP deflator can be used:

To reduce the overstatement of economic activity that would occur if we included intermediate production.

?

?

?

The 'law of demand' means:

?

?

?

?

____________that deals with the economy as whole.

?

?

?

?

if the nominal interest rate is 17% and the inflation rate is 10%, then the real rate of interest is-------------------.

?

?

?

?

If the Keynesian consumption function is C = 0.7 (Y-T) and disposable income is Rs.1000.What is the marginal propensity to consume?

?

?

?

?

If the Keynesian consumption function is C = 0.7 (Y-T) and disposable income is Rs.1000.What is the marginal propensity to consume?

?

?

?

?

If a producer buys flour for Rs.300 and cream for Rs.50 and uses them to produce and sell Rs700 worth of cake to consumer, the contribution to GDP is:

350

?

?

?

Currency held by the public is included in-------

?

?

?

?

GDP deflator is equal to:

Nominal GDP/Real GDP *100

Real GDP/Nominal GDP * 100

Nominal GDP/Price index *100

Inflation rate/Real GDP *100

GNP is \$750 billion and depreciation is \$200 billion, then net national product:

Is \$550 billion.

Is \$640 billion.

Is \$950 billion.

Cannot be determined from this information.

The Phillips Curve illustrates the short run tradeoff between:

Inflation and unemployment.

Inflation and employment.

Inflation and price level.

Inflation and price index.

Which of the following best defines Net national product?

GDP less depreciation

GNP plus income generated from foreign firms in the domestic country

GNP less depreciation

GNP less income generated from foreign firms in the domestic country

According to the Fisher effect, a higher inflation rate leads to higher -----------

?

?

?

?

copy, paste ke chakr me mre 3 q. miss ho gae.....,

how many lectures are included?

1 to 17 lectures

Assume the first three units of labor input generate corresponding total outputs of 700, 770 and 830. The marginal product of the second unit of labor is:

70

700

770

1470

plz koi btaye ga, iss ka sahi answer kese aye ga, also briefly discuss of calculation.

Marginal product of labor (MPL) = change in total product / change in variable input

change in output = 770-700/2-1 = 70

Please all students related this subject Share your online Quizzes here to help each other.thanks

Please share the question and their answers of this quiz if anyone has done.
Thanks.

Question#01

If the gov of a small open economy increases personal income taxes, then that country's:

• Net exports increases
• Investment increases
• Equilibrium real exchange rate rises
• Consumption rises

Question# 02

The demand for money represents the idea that there is:

• A +ve relationship between the interest rate and the quantity of money demanded
• A -e relationship between the level of aggregate output and the quantity of money demanded
• A -e relationship between the interest rate and the quantity of money demanded
• A -e relationship between the price level and the quantity of money demanded

Question# 03

Which of the following is not the example of consumption expenditure?

• Television sets
• Military airplanes
• Clothing
• Restaurant meals

Question# 04

You bought stock of a company at Rs. 10,000and sold it after one year at Rs. 12,000. Your nominal capital gain is:

• 10%
• 20%
• 30%
• 40%

Question# 05

The circular flow is used to make the point:

• Households are both earners and spenders
• Production generates income
• Unemployment only occurs during recession
• Rising prices never occur during unemployment.

Question# 06

An example of expansionary monetary policy is:

• An increase in the required reserve ratios
• An increase in discount rate
• A reduction in the taxes banks pay on theirs profits
• The central bank buying securities in the open market

Question# 07

The money supply increases when:

• There is an increase in gov purchases
• The central bank buys Treasury bonds from the public
• A private citizen buys a bond issued by General Motors
• IBM sells stock to the public and uses the proceeds to finance the construction of new factory

Question# 08

Which of the following is not included in M1?

• Deposits in checking accounts
• Deposits in checking accounts that pay interest
• Currency held by the public
• None of the given option

Question# 09

An item that is intrinsically worthless is:

• Commodity money
• Precious metals
• Fiat money
• Barter items

Question# 10

An increase of 10% in nominal GDP indicates that:

• Real output has increased by 10%
• The aggregate price level has increased by 10%
• Real output and price level has increased by 5% each
• It is possible that all of the increase was caused by an increase in the price level

Question# 11

In a macroeconomic model without trade or government spending, aggregate demand is the sum of:

• Personal saving and private investment
• Personal saving and personal consumption
• Personal consumption and personal income
• Personal consumption and private investment

Question# 12

Barter economies require

• The use of fiat money
• The use of commodity money
• A double coincidence of wants
• Money to serve as a store of value but not as a medium of exchange

Question# 13

Which of the following would be counted as investment in the calculation of GDP? :

• The profit earned from the sales of bonds
• The purchase of a share of Microsoft stock
• The construction of new home
• The tuition paid by a university student

Question# 14

If state bank of Pakistan wishes to pursue a tight monetary policy it would:

• Increase the minimum reserve asset ratio
• Buy government securities on the open market
• Lower interest rates
• Sell government securities on the open market

Question# 15

Which of the following would be macroeconomic question? :

• How have prices of specific commodities increased over time?
• How has output in specific market increased over time?
• How have personal incomes in general increased over time?
• How have the incomes in a particular occupation changed over time?

Question # 16

Which of the following happen in product market?

Select correct option:

• Households supply goods and services which businesses demand
• Households supply resources which firms demand
• Households demand inputs that firms supply
• Firms supply products which households demand

Question # 17

Which of the following is NOT a function of money?

• A medium of exchange
• A unit of account
• A shelter against inflation
• A store of value

Question # 18

If the nominal interest rate is 8% and the inflation rate is 5%, then the real rate of interest is:

• -3%
• 5%
• 13%
• 3%

Question # 19

The short-run is the time period in which:

• Firms can purchase new capital.
• Potential output is fixed.
• Price does not change very much.
• Government spending fixed.

Question # 20

An asset that is included in M3 but not in M2 is:

• Currency.
• Checkable deposits.
• Small-denomination certificates of deposit.
• Large-denomination certificates of deposit.
EC0403 Quiz 02 Fall 2013
1. An increase in the costs of production of commodity “X” will:
• Shift demand outwards
• Shift demand inwards
• Shift supply outwards
• Shift supply inwards.
2. If a producer buys leather for Rs.100 and thread for Rs.50 and uses them to produce and sell Rs500 worth of bag to consumer, the contribution to GDP is:
• Rs.150
• Rs.500
• Rs.550
• Rs.650
3. Investment includes:
• Residential Fixed Investment.
• Inventory Investment.
• All of the given options.
4. If the gov of a small open economy increases personal income taxes, then that country's:
 Net exports increases
 Investment increases
 Equilibrium real exchange rate rises
 Consumption rises
5. You bought stock of a company at Rs. 10,000and sold it after one year at Rs. 12,000. Your nominal capital gain is
 10%
 20%
 30%
 40%
6. Which of the following is not included in M1?
 Deposits in checking accounts
 Deposits in checking accounts that pay interest
 Currency held by the public
 None of the given option
7. An increase of 10% in nominal GDP indicates that:
 Real output has increased by 10%
 The aggregate price level has increased by 10%
 Real output and price level has increased by 5% each
 It is possible that all of the increase was caused by an increase in the price level

8.Barter economies require
 The use of fiat money
 The use of commodity money
 A double coincidence of wants
 Money to serve as a store of value but not as a medium of exchange

9. Which of the following is NOT a function of money?
 A medium of exchange
 A unit of account
 A shelter against inflation
 A store of value
10. If the nominal interest rate is 8% and the inflation rate is 5%, then the real rate of interest is:
 -3%
 5%
 13%
 3%
11. According to the Fisher effect, a higher inflation rate leads to higher -----------
• Real money balances.
• Nominal interest rate.
• Real interest rate.
• Real interest & money balance.
12. If M = 2, P = 3, and Y = 40, then the velocity equals to;
• (3 * 2)/40
• (3 * 40)/2
• (2 * 40)/3
• (3 * 2 *40)/2
• (2 * 40)/3
13. The short-run is the time period in which:
 Firms can purchase new capital.
 Potential output is fixed.
 Price does not change very much.
 Government spending fixed.
14. An asset that is included in M3 but not in M2 is:
 Currency.
 Checkable deposits.
 Small-denomination certificates of deposit.
 Large-denomination certificates of deposit.
15.GDP deflator is equal to:
 Nominal GDP/Real GDP *100
 Real GDP/Nominal GDP * 100
 Nominal GDP/Price index *100
 Inflation rate/Real GDP *100
16. GNP is \$750 billion and depreciation is \$200 billion, then net national product:
 Is \$550 billion.
 Is \$640 billion.
 Is \$950 billion.
 Cannot be determined from this information.

17. The demand for money represents the idea that there is:
 A +ve relationship between the interest rate and the quantity of money demanded
 A -e relationship between the level of aggregate output and the quantity of money demanded
 A -e relationship between the interest rate and the quantity of money demanded
 A -e relationship between the price level and the quantity of money demanded

18. Which one of following is correct equation?
• Y = C + I + G + NX
• Y = C + S + I + NX
• Y = C + T + G + NX
• Y = C + T + I + G + NX
19. The ---------refers to the separation of ------and ----------- variables.
• Classical dichotomy; real; nominal
• Keynes dichotomy; dependent; independent
• Classical dichotomy; exogenous; endogenous
• Classical dichotomy; real wages; real
20. The relative price of domestic -------- in terms of foreign-------- is known as real exchange rate
• Goods; goods
• Currency; currency
• Goods; currency
• Currency; goods

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