NATIONAL UNIVERSITY OF SINGAPORE

BSP2701 – GLOBAL ECONOMY

Assignment

Semester [1] : AY 2023/24

Time Allowed: 1 hr

INSTRUCTIONS TO STUDENTS

1- Students are required to answer [ALL] questions.

2- After completing the assignment questions, please login to Examplify (before the due date) to
start the assessment, where you just need to key in your solutions for the respective questions
within the time limit of 1 hr.

3- All students are to submit solutions via Examplify.

4- Refer to Canvas announcement for submission deadline. Do NOT assume auto-submission.

Once you begin assessment, you have to complete it before time limit AND deadline. Students
who miss deadline will receive ZERO score.

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1)

[1 mark]

In a given year, the GDP deflator will rise if _______.

A) nominal GDP has decreased and real GDP remained unchanged.
B) nominal GDP remained unchanged and real GDP has increased.
C) nominal GDP has increased and real GDP has decreased.
D) nominal GDP has decreased and real GDP has increased.
E) None of the above.

2)

[1 mark]

According to GDP computation, which of the following is NOT considered as investment?

A) A rise in goods produced but remain unsold.
B) The sale of government bonds by the nation's central bank.
C) The construction of a new computer chip factory by Nvidia.
D) (A) and (B).
E) All of the above.

3)

[1 mark]

Macroeconomists are concerned about inflation because inflation causes _______.

A) real GDP to rise.
B) nominal GDP to fall.
C) wages to rise as fast as prices.
D) real GDP to exceed nominal GDP.
E) None of the above

4)

[1 mark]

In Singapore, which age group experienced the highest unemployment rate during the pandemic?
A) Below 30
B) Mid 30s
C) Mid 40s
D) Mid 50s
E) Above 60

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5)

[1 mark]

Country A’s real GDP per capita is higher than Country B’s real GDP per capita. If Country A’s
real GDP per capita is growing at 1% per year and Country B’s real GDP per capita is growing at
2% per year, which of the following will most likely be true over in the long run?
A) Country A’s real GDP per capita will eventually fall until it equals Country B’s real GDP per
capita.
B) Country A’s real GDP per capita will always be 1% lower than Country B’s real GDP per
capita.
C) Country A’s real GDP per capita will eventually be higher than Country B’s real GDP per
capita.
D) Country A’s real GDP per capita will eventually be lower than Country B’s real GDP per
capita.
E) Country A’s real GDP per capita will eventually rise until it equals Country B’s real GDP per
capita.

6)
(1 mark)
In the long run, which of the following will raise the standard of living of a country?
A) More entrepreneurship.
B) More human capital.
C) More applied technology.
D) All of the above.
E) None of the above.

7)
[1 mark]

GDP is the market value of all final and intermediate goods and services produced within a
country.
A) True
B) False

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8)

[1 mark]

According to GDP statistics, imports cannot be more than 100% of the economy’s GDP.
A) True
B) False

9)

[1 mark]

As compared to previous recessions, the effect of the pandemic on unemployment in US is

transitory.
A) True
B) False

10)

[1 mark]

In the long run, a rise in share of people working will lead to a rise in average labor productivity
and living standards.
A) True
B) False

FITB-Q1

[1 mark]

Given the following information: Consumer expenditures are 3500, government purchases are
900, gross private domestic investment is 400, imports are 400. and exports are 200.

Solve for GDP: _______.

4
FITB-Q2

[1 mark]

Compensation of Employees 205,667.50

Gross Operating Surplus 270,153.70
Other Taxes Less Subsidies on Production 9,761.20
Taxes on Products 25,902
Statistical Discrepancy -3,916.70

Solve for Gross Domestic Income: _______.

FITB-Q3

[2 marks]
Given the following information:
There are 160 million adult population. 90 million people are working; 10 million are not
working but are looking for work; and 20 million are not working and have given up looking for
work.

a) Solve for the unemployment rate %: _______.

b) Solve for the labor force participation rate %: _______.

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FITB-Q4

[3 marks]

Given the following information for Singapore:

2020 2019 2018

Gross Domestic Product at current market prices 476,404.8 512,219.9 508,495.1
Gross Domestic Product at 2015 market prices 461,056.9 480,984.6 475,771.7

Please choose the correct answers:

a) The GDP deflator rose / fell / remained unchanged / changed ambiguously from 2018 to 2020.

b) When compared to the average price level in 2015, you can conclude that the average price
level in 2018 / 2019 / 2020 / more information is required is the highest.

c) Supposed that the inflation rate is used as a gauge for cost of living. Given above, you would
expect that cost of living rose / fell / remained unchanged / more information is required from
2019 to 2020.

FITB-Q5

[2 marks]

Given that an economy’s real GDP is $200000 in year 1 and $220000 in year 2. Its population is
100 in year 1 and 102 in year 2.

In year 2, solve for the growth rate % of real GDP per capita (correct to 2 decimal places):
_______.

6
FITB-Q6

[4 marks]

GDP per capita Share of people working

1990 2010 1990 2010
Singapore 11865 39721 0.63 0.65

Solve for the following:

a) Singapore’s output per worker in 1990 (correct to 2 deci places): _______.

b) Singapore’s output per worker in 2010 (correct to 2 deci places): _______.

Please choose the correct answers:

c) Over 1990-2010, the change in GDP per capita is mostly attributed to changes in output per
worker /share of people working.

d) Assume that GDP per capita continues to rise and the share of people working continues to
fall due to an aging population, you will expect output per worker to rise/fall/change
ambiguously/remain unchanged.

FITB-Q7

[2 marks]

Please choose the correct answers:

In the long run, the combination of a high / low / zero growth of average labor productivity and a
high / low / zero growth of share of people working will result in the largest increase in the
growth in GDP per capita.

THE END