NAME :

CLASS :
3.3 - Macroeconomic Objectives HL Test
DATE :
33 Questions

1. Which of the following best de nes unemployment?

a) The state of being able to work and actively b) The state of being able to work, but
seeking work, but unable to nd choosing not to.
employment.

c) The percentage of the labour force that is d) The total number of people who do not
able and actively seeking work, but cannot work.
nd employment.

2. Which of the following is not a consequences of rising

unemployment?

a) Increased illness through psychological b) Upward pressure on average wage levels

stress

c) Higher rates of emigration, causing d) Increased crime rates.

reductions in productive capacity.

3. When employees are unemployed because they are moving

between jobs, which form of unemployment is this
classi ed as?

a) Frictional b) Structural
c) Seasonal d) Cyclical

4. Which type of unemployment occurs due to a lack of overall

aggregate demand in the economy?

a) Structural b) Cyclical

c) Seasonal d) Frictional
5. Agricultural workers, beach life guards and political election
workers are all likely to face __________ unemployment.

a) Frictional b) Seasonal
c) Structural d) Cyclical

6. There are 3.6 million people unemployed out of a labour

force of 22 million and a population of 26 million. What is
the unemployment rate?

a) 20.85% b) 18.18%

c) 16.36% d) 13.84%

7. If the population is 40 million, with a labour force of 35

million and an unemployment rate of 4%, what is the
number of unemployed people?

a) 1.6 million b) 1.4 million

c) 0.8 million d) 0.2 million

8. If the in ation rate was 5% last year and 3% this year, what
has occurred?

a) Demand-pull in ation b) De ation

c) Disin ation d) In ation

What is the name given to the situation characterized by

9.
high in ation rates, increases in unemployment rates and
slow or negative economic growth?

a) De ation b) Recession

c) Trough d) Stag ation

10. What is the price of the basket of goods in 2016

a) $78.00 b) $97.00

c) $100.00 d) $104.50

11. What is the consumer price index in 2016 (given that 2015)
is the base year.

a) 133.97 b) 126.98
c) 125.55 d) 118.15

12. Which of the following best describes the concept

illustrated by the long run Phillips curve (LRPC)

a) There is an optimum level of taxes that b) In the long run, there is an inverse
maximizes tax revenue, and consequently relationship between unemployment and
maximizes employment. in ation.

c) In the long run, there is no trade-o d) In the long run, there is a positive
between in ation and unemployment. relationship between employment and
economic growth.

13. Economic growth is best measured by an increase in

__________.

a) GDP b) GNP
c) Real NNP d) Real GDP

14. What is likely to happen if the population growth rate is

greater than GDP growth rate.

a) Average incomes will rise b) Average incomes will fall

c) Real growth rates will rise d) There will be no direct impact on average
incomes
15. What is real GDP in 2014?

a) $1,802,500,000 b) $1,715,686,275

c) $1,750,000,000 d) None of the above.

16. What is real GDP in 2015?

a) $1,767,156,862.75 b) $1,733,173,076.92

c) $1,912,092,000.00 d) $1,725,000,000.00

17. If nominal growth is 6% in 2016, the CPI in 2015 is 135, and

the CPI in 2016 is 139.05, what is the real growth rate in
2016?

a) 6% b) 5%
c) 4% d) 3%

18. Which economic system is most likely to achieve higher

income equality?

a) Mixed-economies b) Free market economies

c) Planned economies d) Subsistence economies

19. What does the Lorenz curve depict?

a) Income distribution b) The concept of absolute poverty

c) The relationship between in ation and d) The relationship between tax rate and total
unemployment rate tax revenues

20. If the Gini index equals 0, what does this indicate?

a) There is perfect equality in income b) There is perfect inequality in income

distribution. distribution.
c) The country is a mixed economy, with d) The country is a pure free market, with no
welfare payments for the poor. government intervention.
21. Suppose the population is 175 million people, the number
of people unemployed is 20 million and the number of
people employed is 130 million. Calculate the labour force
participation rate

a) 13.3% b) 15.4%

c) 85.7% d) 86.7%

22. Sonia makes RM30,000 per year and pays RM6,000 in

income taxes. Raj makes RM40,000 and pays RM10,000 in
income taxes. This is an example of

a) a regressive tax b) a progressive tax

c) a proportional tax d) a sale and service tax

23. The expansionary scal policy involves

a) only an increase in taxes b) a decrease in government spending and/or

an increase in taxes

c) only a decrease in government spending d) an increase in government spending

and/or a decrease in taxes

24. An economy is in macroeconomic equilibrium. If Y =

200, C =100, I =30, G=40 and M =30, what is the value of
exports?

a) 60 b) 40

c) 90 d) 80

25. Cars, TVs, computers belong in which part of the GDP

formula?GDP = C+I+G+(X-M)

a) Consumption Expenditures b) Investment Expenditures

c) Government Expenditures d) Net Imports

26. When income is $200 consumption is $140, and when
income is $250 consumption is $180. The marginal
propensity to save is

a) 0.80 b) 0.75

c) 0.25 d) 0.20

27. The Phillips curve shows the relationship between in ation

and what?

a) Unemployment b) GDP

c) Price level

28. Solve the GDP using the Expenditure method.

a) 420 M b) 423 M

c) 425 M d) 427 M

29. Bobby earns 23,258.45 pesos per month. He has a total

monthly contribution or 857.50 pesos to SSS, pag-ibig, and
PhilHealth. How much is his Taxable income?

a) 3,762.28 b) 3,726.28

c) 267,811.40 d) 268,811.40

30. What is the nominal GNP growth rate from 2016-2017?

a) 12.20% b) 9.37%

c) 14.49% d) 5.37%
31. What is the nominal GNP growth rate from 2016-2017?

a) 12.20% b) 9.37%

c) 14.49% d) 5.37%

32. It captures the prices of goods and services that consumers

typically buy.

a) Total Weighted Price b) Weighted Price

c) Consumer Price Index d) Consumer Product Index

Monthly salary: 45,387.92Monthly contributions:SSS:

33.
581.30Pag-ibig fund: 100.00PhilHealth: 230.00
How much is the Annual Tax Due?

a) 63,427.86 b) 63,429.86

c) 63,428.86 d) 63,430.86