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Ques Cours Question text Correct Option 2 Option 3 Option

tion e Code Option 4
No.
1 The rate of unemployment is found by dividing dividing dividing dividing
the the the the
number number number number
unemploy unemploy employed employ
ed by the ed by the by the ed by
number number number of the
of people employed. people in number
in the the labor unempl
labor force oyed
force.

2 The population is 1,200 million, the labor force 10 percent 7.5 4.3 percent 5
is 150 million, and the number of unemployed percent percent
is 15 million. What is the unemployment rate?
3 Since 1950, it can be observed that the female decreased. decreased. decreased. decreas
participation rate in our labor force has ed.
increased.

4 After completing college, John Smith spent two frictionall not in the cyclically structur
months looking for a job. During this period he y labor force unemploye ally
would be classified as unemploy d. unempl
ed oyed.

5 Which of the following best fits the definition Not Working Retired and Not
of unemployed? working less than a not working
but full work working at a
looking week gainful
for a job pursuit,
either in
or out
of the
home

6 Which one of the following statements about . The value GDP can GDP
GDP is true? All of of be can be
Above household calculated calculat
production using the ed
is expenditur using
excluded es the
from GDP approach. income
approac
h
7 C + I + G + X equals GDP. DPI NDP. .
PI.

8 Which of the following statements is true? GDP = GDP = GDP = NI DGDP

percent GDI NDP = PI

9 The computation of GDP by adding up all . the the transfer the

components of national income including income expenditur payments value of
wages, interest, rent and profits is approach. e approach all
securiti
 es.
.
10 The largest component of gross domestic wages interest profits taxes
income is payments.

11 Net exports is equal to total total total total

exports imports exports exports
minus minus adjusted minus
total total for price transfer
imports. exports. changes paymen
ts.

12 National income includes all of the following depreciati proprietors net interest propriet
EXCEPT on. ' income. ors'
income
13 The amount of income households receive after disposable gross personal national
personal income taxes have been paid is known personal domestic income. income
as income income
14 The total factor payments to all resource national net personal gross
owners is called income. domestic income domesti
product. c
income
15 Personal income is equal to disposable NDP disposable national
personal minus personal income
income national income minus
plus income. plus (corpor
personal personal ate
income and income
taxes. corporate taxes
income and
taxes Social
Security
).

16 The amount of income received by households personal disposable national net

prior to the payment of personal income taxes income. wages. income. domesti
is called c
product.

17 If a nation's nominal GDP is $3,257 million $2467.42 $4.05 $24.67 $4299.2

and its price level is 132, then its real GDP is million. million. million 4
million
18 Nominal GDP is calculated using the the prices the the
market from some average of prices
 prices base year prices from
during to adjust from the the
the year for price three precedi
under changes preceding ng year
considerat years.
ion.
19 Of the following, which country has the highest United China Italy Brazil
annual real GDP per capita according to the States
International Monetary Fund and World
Bank?

20 Which of the following variables is used to real GDP nominal nominal real
measure economic growth? per capita GDP GDP per GDP
capita
21 According to your text, which of the following China Japan Germany United
countries currently has the highest annual per States
capita Gross Domestic Product (GDP) growth
rate?

22 The term "economic" growth refers to productiv resources nominal satisfact

increases in e use. income. ion.
capacity.

23 Economic growth is usually defined as the the rate of the the

increase increase in increase in reductio
in output output input n in the
over time, divided by availabilit real
as the y cost of
measured increase in necessit
by real labor. ies.
per capita
Gross
Domestic
Product
(GDP).

24 B C D A

Refer to the above table. Which country

experienced the greatest economic growth
from 2012 to 2013?

25 Which of the following is NOT an important The The rate of The rate of The rate
 factor affecting economic growth? growth of saving growth of of
leisure capital growth
in labor
producti
vity

26 How should per capita real Gross Domestic It is a It is an Per capita All of
Product (GDP) be used? reasonabl accurate real Gross the
y good measure Domestic above.
measure of Product
of economic (GDP) is a
productiv well- good
e activity. being. gauge of a
nation's
quality of
life
because it
takes into
account a
nation's
cultural
and
spiritual
values.

27 Economic growth is measured by increases increases increases increase

in per in GDP. in the s in the
capita population value of
real GDP. . the total
output
of
society.
28 Per capita real GDP is a serviceable measure productiv economic cost of cultural
of e activity. welfare living superior
standards. ity.

29 Economic growth may overstate changes in the the people are the expecte
standard of living if average retiring at number of d life
workweek a younger students spans
is age. attending are
increasing college is increasi
. increasing. ng.

30 The per capita GDP for Hungary in 2011 was 3 percent 97 percent 2 percent 1
$12,000 and in 2012 was $12,360. How much percent
 did the economy grow in 2012?
31 What type of unemployment is found in India? All of the Structural Seasonal Disguis
above Unemploy unemploy e
ment ment unempl
oyment

32 If new computers are being installed in a Frictional Disguised Structural Hidden

company and some employees are fired from unemploy Unemploy unemploy unempl
the job due to lack of computer knowledge ment ment ment oyment
then what kind of unemployment will it be
called?

33 What type of unemployment is found in the Disguised Voluntary Frictional None of

agriculture sector of India? Unemploy unemploy unemploy the
ment ment ment above

34 Who developed the concept of disguised John John Amartya Alfred

unemployment? Robinson Keynes Sen Marshal
l

35 Who are counted in the labour force of a The The The Populati
country? populatio population population on of 21
n of 15 to of 18 to 60 of 18 to 65 to 62
65 years years of years of years of
of age age age age

36 For you to be considered out of the labor force, any of the a full-time a full-time a full-
you can be above student retiree time
volunte
er.

37 Transfer payments refer to payments, which are Without To As None

made: any workers compensat
exchange on transfer ion to
of goods from one employees
and job to
services
another

38 In GNP calculation which of the following Governm Rental Interest Dividen

should be excluded? ent incomes payments ds
transfer
payment

39 Transfer payments refer to payments, which are Without To workers As   None

made: any on transfer compensati
exchange from one on to
 of goods job to employees
and another
services

40 Net national product at factor cost is also known Net Gross National Personal
as: Domestic National Income Income
product product

41 The money demand function implies that negatively positively negatively negativ
money demand is related to related to related to ely
interest interest bond related
rates rates. prices. to
transact
ions in
the
econom
y.

42 If the interest rate increases, there is a(n) decrease increase in decrease in increase
in the the the in the
quantity demand demand quantity
of money for money. for money of
demanded money
demand
ed.

43 When the Fed conducts open market purchases is also raises shifts
operations, it or sells engaging taxes at the
governme in fiscal the same demand
nt bonds policy. time. for
issued by money
the U.S. curve.
Treasury.

44 A barter arrangement essentially means a cashless a credit buying swappin

transactio deal. with an g goods
n I.O.U. for
cash.
45 When you set aside the money you have today store of medium of standard of unit of
in order to purchase goods and services later value. exchange. deferred account
on, you are using money as a payment. ing.
46 Which of the following is NOT one of the Source of Medium Medium Store of
functions of money? wealth of of value
exchange exchange
47 Which of the following assets is the most liquid U.S. U.S. corporate an
in the United States? currency Treasury bonds antique
 Bonds car
48 Assets that can be easily converted into money near transaction currencies. liabilitie
without significant loss of value are monies. s balances. s.
49 The Board of Governors of the Federal appointed appointed elected by elected
Reserve System is by the by the the public. by
President Congress. member
with s of the
approval Americ
of the U.S. an
Senate. Bankin
g
Associa
tion.

50 Financial intermediaries are institutions that transfer create provide set

funds in money. checking interest
the form accounts. rates
of loans
from
savers to
investors.