vu eco403 Final Term - Quiz No.15
vu eco403 Macroeconomics Quiz
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Question 1: The term investment refers to:
Only the creation of capital goods undertaken by private firms or the government.
Only large projects, such as building a new factory, undertaken by private firms.
Any action today that has costs today but provides benefits in the future.
Any action today that has costs today and provides benefits today.
Question 2: Which of the following would a macroeconomist consider as investment?
Julie buys a government bond
Fred purchases 100 shares of stock in Microsoft
Tom buys a new tractor for his farm
Jane buys a new car
Question 3: Which plays the most important role in increasing the rate of growth in real GDP per capita over time?
Increases in labor productivity
Increases in the money supply
Decreases in the level of inflation
Increases in the real rate of interest
Question 4: Which of the following causes microeconomic inefficiencies in the allocation of resources?
Menu cost of inflation.
Shoe leather cost of inflation.
General inconvenience.
Relative price distortions.
Question 5: Fiscal policy shifts the:
The short run aggregate supply curve
The long run aggregate supply curve
Full employment level of output
The aggregate demand curve
Question 6: The budget deficit is an example of:
Flow
Index
Capital account
Stock
Question 7: The GDP deflator was 100 in the year 2000 and was 105 in year 2002. From this information, we can conclude that:
The price level increased by 5 percent from 2000 to 2002.
The price level increased by 205 percent from 2000 to 2002
The price level increased by 105 percent from 2000 to 2002
We cannot judge price increases from changes in the GDP deflator
Question 8: __________ is a graph of all combinations of interest rate and income that results in goods market equilibrium.
IS Curve
SI Curve
II Curve
SS Curve
Question 9: 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 10:
Refer to the information given in the above table, the marginal propensity to consume at each level is:
| Disposable Personal Income($) | Consumption ($) |
| $100 | $140 |
| $200 | $220 |
| $300 | $300 |
| $400 | $380 |
| $500 | $460 |
Refer to the information given in the above table, the marginal propensity to consume at each level is:
0
0.2
0.8
1.4
