08/03/2022, 04:19 Assignment - 2: Attempt review

Started on Tuesday, 8 March 2022, 3:44 AM

State Finished
Completed on Tuesday, 8 March 2022, 4:19 AM
Time taken 34 mins 48 secs
Grade 15.00 out of 15.00 (100%)

Question 1

Complete
Mark 0.50 out of 0.50

Which of the following would not be included in the calculation of GDP?

Select one:
a. Jim purchases a new automobile.
b. Laurie pays $15 for a haircut.
c. Joe pays a plumber $100 to fix a broken pipe.
d. Sandy, who is on welfare, receives $100 in food stamps.

https://slm.imtcdl.ac.in/moodle/mod/quiz/review.php?attempt=62701&cmid=1580 1/16
08/03/2022, 04:19 Assignment - 2: Attempt review

Question 2

Complete
Mark 0.50 out of 0.50

The demand for money is based primarily on money's role as a(n)

Select one:
a. standard of value
b. medium of exchange
c. store of wealth
d. interest-bearing asset

Question 3

Complete
Mark 0.50 out of 0.50

Discretionary fiscal policy is policy that

Select one:

a. applies to some states but not others
b. is developed in secret by the Government
c. is an intentional change in taxation or government spending
d. applies to some industries but not others

https://slm.imtcdl.ac.in/moodle/mod/quiz/review.php?attempt=62701&cmid=1580 2/16
08/03/2022, 04:19 Assignment - 2: Attempt review

Question 4

Complete
Mark 0.50 out of 0.50

A cartel's profit-maximizing price is

Select one:
a. determined by using the cost-plus pricing model
b. on the demand curve at the quantity where combined marginal cost equals marginal revenue
c. on the demand curve where it intersects its marginal cost curve
d. the highest price possible

Question 5

Complete
Mark 0.50 out of 0.50

Which of the following assumptions is usually made about government purchases?

Select one:

a. They are autonomous.
b. They vary directly with the interest rate.
c. They vary directly with the level of income.
d. They equal the level of net taxes in equilibrium.

https://slm.imtcdl.ac.in/moodle/mod/quiz/review.php?attempt=62701&cmid=1580 3/16
08/03/2022, 04:19 Assignment - 2: Attempt review

Question 6

Complete
Mark 0.50 out of 0.50

If toy stores overestimate the demand for a toy in 2004 and, as a result, have an unexpectedly large number of them on hand at the end of
the year, the value of the increased inventory of those toys will be counted as

Select one:
a. investment in 2005
b. investment in 2004
c. consumption in 2004
d. consumption in 2005

Question 7

Complete
Mark 0.50 out of 0.50

Gross Domestic Product equals the 

Select one:
a. market value of all goods and services produced by resources located in a country
b. value added to the economy by intermediate goods and services minus original cost
c. total output of all goods and services produced by resources located in a country
d. market value of all final goods and services produced by resources located in a country.

https://slm.imtcdl.ac.in/moodle/mod/quiz/review.php?attempt=62701&cmid=1580 4/16
08/03/2022, 04:19 Assignment - 2: Attempt review

Question 8

Complete
Mark 0.50 out of 0.50

Inflation is

Select one:
a. a continuing rise in everyone's standard of living
b. a rise in the real prices of all goods and services
c. a general and continuous rise in the money prices of goods and services
d. a reduction in everyone's standard of living

Question 9

Complete
Mark 0.50 out of 0.50

Monopolistically competitive firms ignore the effect of their decisions upon other firms in the industry because

Select one:

a. each firm is large relative to the market
b. there are few sellers in the market
c. there is only one seller in the market
d. each firm is small relative to the market

https://slm.imtcdl.ac.in/moodle/mod/quiz/review.php?attempt=62701&cmid=1580 5/16
08/03/2022, 04:19 Assignment - 2: Attempt review

Question 10

Complete
Mark 0.50 out of 0.50

If the inflation rate is higher than expected, which of the following groups in society would be most likely to gain?

Select one:
a. borrowers
b. persons holding large amounts of money
c. persons on fixed incomes
d. lenders

Question 11

Complete
Mark 0.50 out of 0.50

Which of the following would cause a downward movement along the money demand curve?

Select one:

a. an increase in the interest rate
b. a decrease in the interest rate
c. a decrease in real GDP
d. an increase in real GDP

https://slm.imtcdl.ac.in/moodle/mod/quiz/review.php?attempt=62701&cmid=1580 6/16
08/03/2022, 04:19 Assignment - 2: Attempt review

Question 12

Complete
Mark 0.50 out of 0.50

Which of the following is not true about Gross Domestic Product?

Select one:
a. Intermediate goods and services are excluded to prevent double counting.
b. It reflects production in a particular year.
c. It includes transfer payments.
d. It includes only final goods and services.

Question 13

Complete
Mark 0.50 out of 0.50

If Ford raises the price of its automobiles, the demand curve for GM automobiles

Select one:

a. shifts to the left
b. shifts to the right
c. becomes more elastic
d. is unaffected

https://slm.imtcdl.ac.in/moodle/mod/quiz/review.php?attempt=62701&cmid=1580 7/16
08/03/2022, 04:19 Assignment - 2: Attempt review

Question 14

Complete
Mark 0.50 out of 0.50

In both monopolistic competition and non-price-discriminating monopoly,

Select one:
a. marginal revenue is equal to average revenue
b. the marginal revenue curve lies above the demand curve
c. the marginal revenue curve lies above the average revenue curve
d. the marginal revenue curve lies below the demand curve

Question 15

Complete
Mark 0.50 out of 0.50

If the MPC equals 0.75 and Government expenditure increases by $100, real GDP demanded will increase by

Select one:

a. 75 percent
b. 25 percent
c. 400
d. 50

https://slm.imtcdl.ac.in/moodle/mod/quiz/review.php?attempt=62701&cmid=1580 8/16
08/03/2022, 04:19 Assignment - 2: Attempt review

Question 16

Complete
Mark 0.50 out of 0.50

Which of the following is true about inflation?

Select one:
a. Accurate anticipation of inflation is possible for everyone who is well informed about economic events.
b. Inflation is more damaging if it is unanticipated.
c. If people accurately anticipate inflation, their actions will prevent it.
d. Inflation promotes social harmony by uniting people against the government.

Question 17

Complete
Mark 0.50 out of 0.50

In periods of high inflation,

Select one:

a. the purchasing power of money is decreasing
b. the purchasing power of money is increasing
c. nobody wants to work and earn income
d. low nominal interest rates are likely to result

https://slm.imtcdl.ac.in/moodle/mod/quiz/review.php?attempt=62701&cmid=1580 9/16
08/03/2022, 04:19 Assignment - 2: Attempt review

Question 18

Complete
Mark 0.50 out of 0.50

If MPC is 0.8, the simple tax multiplier is:

Select one:
a. 4
b. 3
c. 5
d. -4

Question 19

Complete
Mark 0.50 out of 0.50

A cartel is

Select one:

a. a group of oligopolistic firms that engage in formal collusion
b. an agreement among rival firms to set prices independently
c. a group of monopolistically competitive firms which charge the same price
d. usually legal in India

https://slm.imtcdl.ac.in/moodle/mod/quiz/review.php?attempt=62701&cmid=1580 10/16
08/03/2022, 04:19 Assignment - 2: Attempt review

Question 20

Complete
Mark 0.50 out of 0.50

Suppose inflation is expected to be 4% next year, and your employer agrees to a 6% increase in your nominal wage. You expect your real
wage to:

Select one:
a. Increase by 2%
b. Increase by 6%
c. Increase by 4%
d. Decrease by 10%

Question 21

Complete
Mark 0.50 out of 0.50

In deciding how much money to hold, you should compare the 

Select one:
a. disadvantage of liquidity with the advantage of earning more interest
b. disadvantage of storing wealth with the advantage of having a medium of exchange
c. advantage of storing wealth with the advantage of having a medium of exchange
d. advantage of liquidity with the disadvantage of losing interest

https://slm.imtcdl.ac.in/moodle/mod/quiz/review.php?attempt=62701&cmid=1580 11/16
08/03/2022, 04:19 Assignment - 2: Attempt review

Question 22

Complete
Mark 0.50 out of 0.50

Demand-pull inflation is associated with

Select one:
a. decreasing aggregate demand and greater unemployment
b. increasing aggregate demand and greater unemployment
c. increasing aggregate demand and lower unemployment
d. decreasing aggregate demand and lower unemployment

Question 23

Complete
Mark 0.50 out of 0.50

Which monetary policy would be appropriate to close a contractionary gap?

Select one:

a. an increase in reserve requirements
b. a decrease in government purchases
c. the RBI decreasing the bank rate
d. a tax cut

https://slm.imtcdl.ac.in/moodle/mod/quiz/review.php?attempt=62701&cmid=1580 12/16
08/03/2022, 04:19 Assignment - 2: Attempt review

Question 24

Complete
Mark 0.50 out of 0.50

What is the opportunity cost of holding money rather than some other financial asset?

Select one:
a. the forgone interest income
b. the forgone leisure
c. the forgone utility
d. time

Question 25

Complete
Mark 0.50 out of 0.50

An oligopoly is characterized by

Select one:

a. few firms, which have control over market price
b. a single firm and no barriers to entry
c. a large number of firms and no barriers to entry
d. many firms and some barriers to entry

https://slm.imtcdl.ac.in/moodle/mod/quiz/review.php?attempt=62701&cmid=1580 13/16
08/03/2022, 04:19 Assignment - 2: Attempt review

Question 26

Complete
Mark 0.50 out of 0.50

The opportunity cost of holding money increases when

Select one:
a. the interest rate rises
b. the interest rate falls
c. nominal GDP rises
d. the price level falls

Question 27

Complete
Mark 0.50 out of 0.50

A change in autonomous net taxes affects the equilibrium quantity of GDP demanded

Select one:

a. in the same way as a change in autonomous planned investment
b. only indirectly, by first changing the level of disposable income
c. in the same way as a change in autonomous net exports
d. in the same way as a change in autonomous government purchases

https://slm.imtcdl.ac.in/moodle/mod/quiz/review.php?attempt=62701&cmid=1580 14/16
08/03/2022, 04:19 Assignment - 2: Attempt review

Question 28

Complete
Mark 0.50 out of 0.50

Which of the following would directly reduce GDP?

Select one:
a. The switch from home-cooked meals to restaurant meals lowers the nutritional value of the average diet.
b. The Resident Welfare Association of Primus Estates decides to lay-off local guards at the local swimming pool.
c. An unscrupulous disposal company dumps barrels of toxic waste near a suburban water supply.
d. Pollution of international waters increases.

Question 29

Complete
Mark 0.50 out of 0.50

Monopolistic competition is different from perfect competition because monopolistic competitors produce

Select one:

a. a homogeneous but unique product
b. a homogeneous product
c. unique products
d. differentiated products

https://slm.imtcdl.ac.in/moodle/mod/quiz/review.php?attempt=62701&cmid=1580 15/16
08/03/2022, 04:19 Assignment - 2: Attempt review

Question 30

Complete
Mark 0.50 out of 0.50

A decrease in autonomous net taxes

Select one:
a. increases GDP less than an equal increase in government purchases
b. decreases GDP more than an equal decrease in government purchases
c. changes GDP in an unpredictable manner
d. increases GDP as much as an equal decrease in government purchases

 

https://slm.imtcdl.ac.in/moodle/mod/quiz/review.php?attempt=62701&cmid=1580 16/16