Dosen : Diny G

UTS 1

1. In the last decade, Indonesia external debt as a percentage of GDP is ____ than that of the U.S.

a. equal

b. more

c. less

d. undefined

2. Change in CPI can overstate the true change in the cost of living because

a. The prices of all consumer goods and services are not included in the CPI

b. The value of household services is excluded from the CPI

c. The CPI only includes consumer prices

d. The changes in what consumers purchase are not reflected right away in the weights used for
calculating the CPI

3. Real GDP increases

a. When there is an increase in the output and of goods and services

b. When there is an increase in GDP deflator

c. When there in an increase in price level

d. When there is an increase in the population

4. In the U.S. the monetary policy is undertaken by

a. Federal Reserve Bank of St. Louis

b. Bureau of Labor Statistics

c. Federal Open Market Committee

d. Market of loanable funds

5. Suppose the nominal interest rate is 22% and inflation rate is 3%. What is the real interest
rate?

a. 25%

b. 19%

c. 10%

d. 20%

6. In a system of fractional banking system, even without any action by the central bank, the
money supply declines if banks choose to hold ____ excess reserves or if households choose hold
____ currency.
a. More, less

b. Less, more

c. More, more

d. Less, less

7. Suppose Indonesian nominal GDP in 2011 and 2020 were 10900 and 16400 trillion rupiah
respectively. While the GDP deflator in those periods were 105 and 142 respectively. What was
the growth rate of real GDP and the inflation rate between 2011 and 2020?

a. 35% and 50%

b. 50% and 11%

c. 50% and 35%

d. 11% and 35%

8. Suppose employment is 125 million and the unemployment rate is 5.3%. How large is the labor
force?

a. 130.3 million

b. 6.99 million

c. 132 million

d. 120 million

9. Jamal has a utility function U=W^(1/3), W is the wealth and U is the utility he obtains from
the wealth. The utility function has a ____ slope and Jamal is ____. (Hint: draw the utility
function)
a. Negative and risk lover
b. Negative and risk averse
c. Positive and risk averse
d. Positive and risk lover
10. If the government spends more that it collects in tax revenues, and households consume less
than they get in after tax income, then
a. Private saving is negative, but public saving is positive
b. Private and public saving are both negative
c. Private saving is positive, but public saving is negative
d. Private and public saving are both positive
UTS 2
1. Which of the following activities is NOT an economic activity that is counted in the GDP
calculation?
a. The clerk at the gas station is paid her weekly income
b. You buy a tank of gas for your car
c. The gas station owner transfer funds from his checking account to a stock mutual funds
d. The gas station owner buys a new car
2. Which one of the following is considered unemployed?
a. A stay-at-home mom who is home-schooling her children
b. A full-time student who has no job during the school year
c. A man who last worked eight months ago but who has not looked for work for the last two months
d. A college graduate who is interviewing for a post-graduation job
3. A two-bedroom house costs Rp750 million in 2011. While inflation CPI rises from 105 in 2011
to 142 in 2020. How much does the house cost in 2020 price?
a. Rp1014 million
b. Rp7875 million
c. Rp1065 million
d. Rp554.6 million
4. Based on the empirical evidence, one should choose to invest in
a. Indexed funds
b. Managed funds
c. Mutual funds
d. IDX funds
5. A company has an investment project that would cost $10 million today and yield a payoff of
$15 million in 4 years. Should the firm undertake the project if the interest rate is 7%? 10%?
a. Yes, yes
b. No, yes
c. Yes, no
d. No, no
6. While Jon is walking to school one morning, a helicopter flying overhead drops a $100 bill.
Not knowing how to return it, Jon keeps the money and deposits it in his bank. (No one in this
economy holds currency.) If the banks keep 5% of its money in reserves. How much money can
the bank now lend out and how much money will eventually be created by the banking system?
a.$80 and $500
b. $90 and $1950
c. $95 and $2000
d. $85 and $500
7. Ceteris paribus, which of the following leads to an increase in interest rate?
a. More households borrow to buy houses
b. The country experiences surplus
c. The government implements saving incentives policies
d. The government ends the investment tax credit
8. If the Fed wants to decrease the money supply, it will
a. Lower discount rate, sell government bonds, raise reserve requirement
b. Lower discount rate, buy government bonds, reduce reserve requirement
c. Raise discount rate, buy government bonds, raise reserve requirement
d. Raise discount rate, sell government bonds, raise reserve requirement
9. Some consumer goods, for instance electronics, are usually getting better overtime due to
more advanced technology. In this case
a. The GDP deflator understates inflation
b. The CPI overstates inflation
c. The GDP deflator overstates inflation
d. The CPI understates inflation
10. The part of unemployment that rises and falls with the fluctuation of GDP around its long-
term trend is
a. Natural rate of unemployment
b. Cyclical unemployment
c. Frictional unemployment
d. Unemployment rate