vu eco403 Final Term - Quiz No.9
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 statements about net exports is correct?
The term C + I + G understate domestic production of goods and services because itleaves out exports, which must be subtracted out of GDP to obtain the correct figure
The term C + I + G overstates domestic production of goods and services because itcontains imports, which must be subtracted out of GDP to obtain the correct figure
The difference between exports and imports is negative when the country is a netexporter
Before 1976, the United States was generally a net importer. Only after 1976, exportsbegan to exceed imports
Question 2: Consider the following balance sheet of a bank:
This bank is obviously engaged in:
| Liabilities | |
| Reserves $1,000 | Deposits $1,000 |
This bank is obviously engaged in:
Fractional reserve banking
100-percent-reserve banking
Central banking
Financial intermediation
Question 3: The __________ rate is equal to the number of __________ divided by the
__________ multiply by 100.
__________ multiply by 100.
Unemployment; unemployed; labor force
Unemployment; employed; labor force
Employment; unemployed; labor force
Labor force participation; Adult population; labor force
Question 4: Which of the following appears in M2 but NOT in M1?
Checking account balances
Currency
Travelers checks
Money market mutual funds
Question 5: Technological progress is encouraged by:
The patent system
Tax incentives for research and development
Government subsidies for research
All of the given options
Question 6: If a consumer faces a borrowing constraint then:
He will be unable to consume anything in the second period
He may or may not be less satisfied than if he was able to borrow
Consumption in the first period must be less than consumption in the second period
All of the given options
Question 7: If consumers are forward looking then future taxes are equivalent to:
Current taxes
Current budget
Current consumption
Current savings
Question 8: Which of the following is the closest definition of the term investment?
Investment is the purchase of financial assets, such as stocks and bonds
Investment is the value of newly produced capital goods
Investment is the purchase of goods for present consumption
Investment is the accumulation of previous capital
Question 9: According to Permanent Income hypothesis, when income permanent income then:
Average Propensity to Consume rises
Average Propensity to Consume falls
Average Propensity to Consume remains constant
Average Propensity to Consume first falls then rises
Question 10: The natural rate of unepmloyment will likely to fall if:
Unemployment benefits increase.
Income tax increases.
More training is available for the unemployed.
Geographical immobility increases.
