Macroeconomics Multiply TEST BANK - Google Tài liệu PDF

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TEST 1 Which of the following questions is more likely to be studied by a microeconomist than a macroeconomist? A. Why do prices in general rise by more in some countries than in others? B. How rapidly is GDP currently increasing? C. Why do wages differ across industries? D. Why do national producti...

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TEST 1 1. Which of the following questions is more likely to be studied by a microeconomist than a macroeconomist? A. Why do prices in general rise by more in some countries than in others? B. How rapidly is GDP currently increasing? C. Why do wages differ across industries? D. Why do national production and income increase in some periods and not in others? 2. Which of the following is not a question addressed by macroeconomists? A. What, if anything, can the government do to promote growth in incomes, low inflation, and stable employment? B. Why is average income high in some nations but low in others? C. Why do production and employment expand in some years and contract in others? D. What is the impact of foreign competition on VN auto industry? 3. Much of macroeconomics attempts to explain A. B. C. D.

changes in the growth rate of state government spending. changes in the price of oil and gasoline. long-run growth and short-run fluctuations in real GDP. changes in the prices and quantities of individual goods and services.

4. Which of the following statistics is usually regarded as the best single measure of a society’s economic well being? A. B. C. D.

the inflation rate gross domestic product the unemployment rate the trade deficit

5. For an economy as a whole, A. B. C. D.

wages must equal income. the market value of production must equal expenditure. consumption must equal saving. investment must equal the value of stocks and bonds purchased.

6. Which of the following statements about GDP is correct? A. GDP measures two things at once: the total income of everyone in the economy and the total expenditure on the economy’s output of goods and services. B. Money continuously flows from households to firms and then back to households, and GDP measures this flow of money. C. GDP is generally regarded as the best single measure of a society’s economic well-being. D. All of the above are correct.

7. For an economy as a whole, income must equal expenditure because A. B. C. D.

The number of firms is equal to the number of households in an economy. every dollar saved by some consumer is a dollar of spending by some other consumer. individuals can only spend what they earn each period. Every dollar spent by some buyer is a dollar of income for some seller.

8. If an economy’s GDP falls, then it must be the case that the economy’s A. B. C. D.

income and expenditure both fall. income falls and expenditure rises. income and saving both fall. income falls and saving rises.

9. If an economy’s GDP rises, then it must be the case that the economy’s A. B. C. D.

income rises and expenditure falls. income and expenditure both rise. income rises and saving falls. income and saving both rise.

10. In the actual economy, households A. B. C. D.

spend all of their income. divide their income among spending, taxes, and saving. buy all goods and services produced in the economy. Both (a) and (c) are incorrect.

11. According to the circular-flow diagram GDP A. can be computed as the revenue firms receive from the sales of goods and services but not as the payments they make to factors of production. B. cannot be computed as either the revenue firms receive or the payments they make to factors of production. C. can be computed as payments firms make to factors of production but not as revenues they receive from the sales of goods and services. D. can be computed as either the revenue firms receive from the sales of goods and services or the payments they make to factors of production. 12. Which of the following is a way to compute GDP? A. B. C. D.

total income earned. total expenditures on final goods. add up the market values of all final goods and services. All of the above are correct.

13. Angus the sheep farmer sells wool to Barnaby the knitter for $20. Barnaby makes two sweaters, each of which has a market price of $40. Collette buys one of them, while the other remains on the shelf of Barna by’s store to be sold later. What is GDP here? A. B. C. D.

$60 $80 $100 $40

GDP measures the value of all goods produced (rather than sold) in a period, or we could say the FINAL PRODUCTS, each of the two sweaters contributes $40 to GDP for a total of $80.

14. The table below contains data for the country of Togogo. The base year is 1974. Year

Nominal

GDP Deflator

GDP 1974

$2000

100

1975

$3000

120

1976

$3750

150

1977

$6000

200

From 1976 to 1977, Select one: A. B. C. D.

inflation was 33.3% and output grew at a rate of 60%. inflation was 33.3% and output grew at a rate of 20%. inflation was 50% and output grew at a rate of 60%. inflation was 50% and output grew at a rate of 20%.

Inflation rate year N = [(GDP deflator year N - GDP deflator year N-1)/GDP deflator year N-1] x 100 = [(200 - 150)/150]x100=33,3% Rate of output grew = [(6000 - 3750)/3750]x100 = 60% 15. A country produces only ice cream and pie. Quantities and prices of these goods for the last several years are shown below. The base year is 2008.

Year

Price of Ice Quantity of Ice Price of Pie Cream Cream

Quantity of Pie

2008

$2.50

40

$5.00

20

2009

$3.00

50

$6.00

25

2010

$4.00

40

$6.00

30

In 2009, this country’s A. B. C. D.

real GDP was $240, and the GDP deflator was 125. real GDP was $250, and the GDP deflator was 120. real GDP was $250, and the GDP deflator was 125. real GDP was $240, and the GDP deflator was 120.

Nominal GDP = current year price * current quantity = 3*50+6*25 = 150 + 150 = $300 Real GDP = Current year quantity * base year price = 2.5*50 + 5*25 = $250 GDP deflator = Nominal GDP : Real GDP = 120%

16. If all quantities produced rise by 10 percent and all prices fall by 10 percent, which of the following occurs? A. B. C. D.

Real GDP rises by 10 percent, while nominal GDP is unchanged. Real GDP is unchanged, while nominal GDP rises by 10 percent. Real GDP is unchanged, while nominal GDP falls by 10 percent. Real GDP rises by 10 percent, while nominal GDP falls by 10 percent.

17. A recession has traditionally been defined as a period during which A. B. C. D.

nominal GDP declines for four consecutive quarters. nominal GDP declines for two consecutive quarters. real GDP declines for four consecutive quarters. real GDP declines for two consecutive quarters.

18. GDP is not a perfect measure of well-being; for example, A. GDP excludes the value of volunteer work.

B. GDP does not address the distribution of income. C. GDP does not address environmental quality. D. All of the above are correct. 19. GDP does not reflect A. B. C. D.

the value of leisure. the value of goods and services produced at home. the quality of the environment. All of the above are correct.

20. Suppose that twenty-five years ago a country had a nominal GDP of $1,000, a GDP deflator of 200, and a population of 100. => real GDP = $500, GDP/person = 500/100 = $5 Today it has a nominal GDP of $3,000, a GDP deflator of 400, and a population of 150. What happened to the real GDP per person? => real GDP = $750, GDP/person = 750/150 = $5 A. B. C. D.

It more than doubled. It increased, but it less than doubled. It decreased. It was unchanged.

Link quizlet for revision: https://quizlet.com/vn/421638480/macro-chapter-24-flash-cards/ https://quizlet.com/327416090/econ-2301-chapter-24-quiz-flash-cards/

TEST 2 1. The consumer price index is used to A. monitor changes in the cost of living over time. B. monitor changes in the level of real GDP over time. C. monitor changes in the stock market. D. monitor changes in the level of wholesale prices in the economy.

2.

The consumer price index is used to A. turn dollar figures into meaningful measures of purchasing power. B. convert nominal GDP into real GDP. C. measure the quantity of goods and services that the economy produces. D. characterize the types of goods and services that consumers purchase.

3. Economists use the term inflation to describe a situation in which A. the economy's overall price level is rising. B. the economy's overall price level is high, but not necessarily rising. C. some prices are rising faster than others.

D. the economy's overall output of goods and services is rising faster than the economy's overall price level.

4. When the overall level of prices in the economy is increasing, economists say that the economy is experiencing A. inflation. B. deflation. C. economic growth. D. stagflation.

5. The inflation rate is defined as the: A. percentage change in the price level from the previous period. B. price level minus the price level from the previous period. C. price level in an economy. D. change in the price level from one period to the next.

6. The inflation rate you are likely to hear on the nightly news is calculated from A. the unemployment rate. B. the CPI. C. the VN-INDEX D. the GDP deflator.

7.

The CPI is more commonly used as a gauge of inflation than the GDP deflator is because: A. the CPI is easier to measure. B. the GDP deflator cannot be used to gauge inflation. C. the CPI is calculated more often than the GDP deflator is. D. the CPI better reflects the goods and services bought by consumers.

8. The CPI is a measure of the overall cost of the goods and services bought by: Select one: A. a typical consumer, and the CPI is computed and reported by the General Statistics Office. B. typical consumers and typical business firms, and the CPI is computed and reported by the General Statistics Office. C. a typical consumer, and the CPI is computed and reported by the Ministry of Industry and Trade. D. typical consumers and typical business firms, and the CPI is computed and reported by the Ministry of Industry and Trade.

9. A. B. C. D.

The CPI is calculated: weekly. monthly. yearly. quarterly.

10. The steps involved in calculating the consumer price index and the inflation rate, in order, are as follows: A. Choose a base year, update the basket, find the prices, estimate the basket’s cost, compute the index, and compute the inflation rate. B. Choose a base year, fix the basket, find the prices, compute the inflation rate, compute the basket's cost, and compute the index. C. Fix the basket, find the prices, compute the basket's cost, choose a base year and compute the index, and compute the inflation rate. D. Fix the basket, find the prices, compute the inflation rate, compute the basket’s cost, and choose a base year and compute the index.

11. When computing the cost of the basket of goods and services purchased by a typical consumer, which of the following changes from year to year? A. the quantities of the goods and services purchased B. the prices of the goods and services C. the goods and services making up the basket D. All of the above are correct.

12. In computing the consumer price index, a base year is chosen. Which of the following statements about the base year is correct? A. The base year is always the first year among the years for which computations are being made. B. The value of the consumer price index is always 100 in the base year. C. The base year is always the year in which the cost of the basket was highest among the years for which computations are being made. D. It is necessary to designate a base year only in the simplest case of two goods; in more realistic cases, it is not necessary to designate a base year.

13. If the consumer price index was 96 in 2012, 100 in 2013, and 102 in 2014, then the base year must be A. 2012. B. 2013.

C. 2014. D. The base year cannot be determined from the given information.

14. Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been chosen as the base year. In 2012, the basket’s cost was $80.00; in 2013, the basket’s cost was $84; and in 2014, the basket’s cost was $87.60. The value of the CPI was A. 100 in 2012. It’s true because this is the base year. B. 105 in 2013. (84/80)*100=105 => True C. 109.5 in 2014. (87.6/80)*100=109.5 => True D. All of the above are correct. 15. The consumer price index measures approximately the same economic phenomenon as: A. the unemployment rate. B. nominal GDP. C. the GDP deflator. measures the overall level of prices in the economy D. real GDP. 16. Because consumers can sometimes substitute cheaper goods for those that have risen in price, A. The GDP deflator understates inflation. B. The GDP deflator overstates inflation. C. The CPI overstates inflation. D. The CPI understates inflation. 17. During a certain year, the consumer price index increased from 120 to 132 and the purchasing power of a person’s bank account increased by 4 percent. For that year: A. the nominal interest rate was 14 percent. B. the nominal interest rate was 6 percent. C. the inflation rate was 12 percent. D. the inflation rate was 9 percent. nominal interest rate = Inflation rate + Purchasing power = [(132-120)/120]*100 + 4 = 14% 18. Rosa deposits $100 in a bank account that pays an annual interest rate of 20%. A year later, after Rosa has accumulated $20 in interest, she withdraws her $120. Rosa’s purchasing power A. did not change if the inflation rate was 20 percent. B. decreased if the inflation rate was -5 percent. C. increased if the inflation rate was 22 percent. D. More than one of the above is correct. 19. A worker received $5 for a daily wage in 1930, which has the equivalent value of $63.24 today. If the CPI was 17 in 1930 what is the value of the CPI today, rounded to the nearest whole number? Select one: A. 1.3 Recap data: 2015: salary 63.24, CPI: X => Needs to be figured out B. 134 1930: salary 5 , CPI: 17.

C. 215 Formula: Today’s dollar = Given Year’s dollar x (CPI today/CPI given year) D. 17 equivalent: 63.24 = 5 x (X/17) => X = 215.016 ≈ 215 20. The consumer price index was 200 in 2012 and 208 in 2013. The nominal interest rate during this period was 9 percent. What was the real interest rate during this period? A. 1.00 percent formula: Real interest rate = Nominal interest rate - Inflation rate B. 5.15 percent equivalent = 9 [(208-200)/200]x100 C. 5.00 percent = 9 - 4 = 5% D. 13.00 percent

TEST 3 1. Because capital is subject to diminishing returns, higher saving and investment does not lead to higher A. B. C. D.

income in the short run. growth in the long run. income in the long run. growth in the short run.

2. Last year real GDP in the imaginary nation of Populia was 907.5 billion and the population was 3.3 million. The year before real GDP was 750 billion and the population was 3 million. What was the growth rate of real GDP per person during the year? A. B. C. D. 3.

{[(907.5b/3.3m) - (750b/3m)] / (750b : 3m)} x 100 = 10%

Which of the following is a good gauge of economic progress? A. B. C. D.

4.

10 percent 14 percent 17 percent 21 percent

the level of real GDP per person and the growth rate of real GDP per person the level of real GDP per person, but not the growth rate of real GDP per person neither the level nor the growth rate of real GDP per person the growth rate of real GDP per person, but not the level of real GDP per person (since the level of real GDP per person is a good gauge of economic prosperity) Productivity is the amount of goods and services

A. produced for each hour of a worker’s time. It is not linked to a nation’s economic policies. B. an economy produces. It is not linked to a nation’s economic policies. C. produced for each hour of a worker’s time. It is linked to a nation’s economic policies. D. an economy produces. It is linked to a nation’s economic policies.

5.

A nation’s standard of living is determined by A. B. C. D.

6.

the quantity of natural resources with which it is endowed. the productivity of its workers. the percentage of its GDP that is accounted for by government purchases. factors and events that are beyond the nation’s control. A nation's standard of living is best measured by its

A. B. C. D.

nominal GDP. nominal GDP per person. real GDP. real GDP per person.

7. Last year real GDP in the imaginary nation of Oceania was 561.0 billion and the population was 2.2 million. The year before, real GDP was 500.0 billion and the population was 2.0 million. What was the growth rate of real GDP per person during the year? A. B. C. D. 8.

2 percent 10 percent 4 percent 12 percent Suppose that real GDP grew more in Country A than in Country B last year.

A. Country A must have a higher standard of living than country B. B. Country A's productivity must have grown faster than country B's. ONLY IF THE POPULATION IN BOTH COUNTRIES GROW AT THE SAME RATE C. Both of the above are correct. D. None of the above are correct. 9.

Which of the following items plays a role in determining productivity? A. B. C. D.

physical capital natural resources technological knowledge All of the above are correct.

10. Which of the following pairs of terms refer to the same thing? A. B. C. D.

“capital” and “physical capital” “standard of living” and “human capital” “standard of living” and “productivity” “technological knowledge” and “human capital”

11. An understanding of the best ways to produce goods and services is called A. productivity.

B. technology. C. human capital. D. physical capital. 12. Industrial machinery is an example of A. B. C. D.

a factor of production that in the past was an output from the production process. physical capital. something that influences productivity. All of the above are correct.

13. Which of the following is not an example of physical capital? A. B. C. D.

a factory building the office chair in a lawyer’s office the knowledge of workers a delivery van

14. Which of the following is an example of physical capital? A. B. C. D.

the computer a secretary uses rivers on which goods are transported the skills and knowledge of a doctor All of the above are correct.

15. Human capital is the A. total number of hours worked in an economy. B. knowledge and skills that workers acquire through education, training, and experience. C. stock of equipment and structures that is used to produce goods and services. D. same thing as technological knowledge. 16. Which of the following is an example of human capital? A. B. C. D.

the things you have learned this semester any capital goods that require a human to be present to operate the comfortable chair in your dorm room where you read economics texts the amount you get paid each week to work at the library

17. Which of the following is considered human capital? Knowledge acquired from A. B. C. D.

early childhood education programs job training on-the-job experience All of the above are correct.

18. Which of the following are human capital and physical capital, respectively?

A. B. C. D.

for a grocery store: grocery carts and shelving for a school: chalkboard and desks for a library: the building and the reference librarians’ knowledge of the Internet for an accounting firm: the accountants’ knowledge of tax laws and computer software

19. Natural resources A. B. C. D.

are inputs provided by nature. include land, rivers, ...