vu eco403 Final Term - Quiz No.5
vu eco403 Macroeconomics Quiz
This quiz belongs to book/course code vu eco403 Macroeconomics of vu organization. We have 22 quizzes available related to the book/course Macroeconomics. This quiz has a total of 10 multiple choice questions (MCQs) to prepare and belongs to topic Final Term. NVAEducation wants its users to help them learn in an easy way. For that purpose, you are free to prepare online MCQs and quizzes.
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Question 1: Which of the following is included in M2?
Commercial paper.
Stocks.
U.S. Treasury bonds.
Savings accounts.
Question 2: All of the following statements about the marginal product of capital MPK are true EXCEPT:
MPK = f(k + 1) - f(k)
MPK tends to decline as k increases
When there is only a little capital, MPK is very small
MPK is equal to the slope of the production function y = f(k)
Question 3: The demand for labor curve shows:
An inverse relationship between the real wage and the number of workers who are willing to work.
That real wages are constant.
An inverse relationship between the real wage and the amount of labor hired.
A positive relationship between the real wage and the number of workers who are willing to work.
Question 5: Which would NOT tend to be a cause of an increase in productivity?
Increases in labor supply
Increases in human capital
Increases in quality of capital
Improvements in technology
Question 6: The major difference between endogenous growth theory and Solow growth model is that:
Endogenous growth theory is a monetary theory whereas the Solow theory is a realtheory
Endogenous growth theory assumes diminishing returns to capital and the Solowtheory assumes constant returns
In endogenous growth theory, economies with the same technology and saving rate neednot converge to the same steady state as in the Solow model
All of the given options are correct
Question 7: Disposable Personal income is equal to personal income minus __________
Personal taxes
Indirect business taxes
Capital consumption allowance
Income earned but not received
Question 8: A classical aggregate supply curve shows which of the following relationship between the price level and output?
Aggregate supply is positively related to real output
Aggregate supply is negatively related to real output
Aggregate supply is unrelated to the price level
Aggregate supply is horizontal
Question 9: Which of the following is counted in Gross Domestic Product?
The sale of a used computer
The sale of an old house
The sale of new car
The sale of bonds
Question 10: An example of an expansionary monetary policy is:
An increase in the required reserve ratio
An increase in the discount rate.
A reduction in the taxes banks pay on their profits
The central bank buying government securities in the open market
