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Quiz 1 Macro Sample With Answers Spring 18

This document contains a 12 question quiz on macroeconomic concepts. [1] The questions cover topics such as defining GDP, calculating GDP from expenditure data, distinguishing between final and intermediate goods, how changes in inventory affect GDP, calculating the unemployment rate, types of unemployment, and how statistics are calculated. [2] An answer key is provided with the correct response for each question. [3] The quiz assesses understanding of foundational macroeconomic measurements and concepts.

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102 views

Quiz 1 Macro Sample With Answers Spring 18

This document contains a 12 question quiz on macroeconomic concepts. [1] The questions cover topics such as defining GDP, calculating GDP from expenditure data, distinguishing between final and intermediate goods, how changes in inventory affect GDP, calculating the unemployment rate, types of unemployment, and how statistics are calculated. [2] An answer key is provided with the correct response for each question. [3] The quiz assesses understanding of foundational macroeconomic measurements and concepts.

Uploaded by

shamsa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Exam

Name___________________________________

Quiz 1 Macro Sample with answers Spring 2018


1) A nation's gross domestic product (GDP): 1)
A) can be found by summing C + In + S + Xn.
B) is the dollar value of all final output produced by its citizens, regardless of where
they are living.
C) is always some amount less than C + Ig + G + Xn.
D) is the dollar value of all final output produced within the borders of the nation
during a specific period of time.

2) Suppose the total monetary value of all final goods and services produced in a 2)
particular country in 2010 is $500 billion and the total monetary value of final goods
and services sold is $450 billion. We can conclude that:
A) NDP in 2010 is $450 billion.
B) GDP in 2010 is $500 billion.
C) GDP in 2010 is $450 billion.
D) inventories in 2010 fell by $50 billion.

3) If intermediate goods and services were included in GDP: 3)


A) the GDP would be understated. it suppose to be 150 but its 100
B) the GDP would be overstated. it suppose to be 100 but its 150
C) nominal GDP would exceed real GDP.
D) the GDP would then have to be deflated for changes in the price level.

4) Which of the following is a final good or service? 4)


A) Fertilizer purchased by a farm supplier. intermediate good
B) Diesel fuel bought for a delivery truck.
C) Chevrolet windows purchased by a General Motors assembly plant.
D) A haircut purchased by a father for his 12-year-old son.

5) Suppose that GDP was $200 billion in year 1 and that all other components of 5)
expenditures remained the same in year 2 except that business inventories fell by $10
billion. GDP in year 2 is:
A) $200 billion. B) $210 billion.
C) $180 billion. D) $190 billion.

200 - 10 = 190

1
6) Answer the question on the basis of the following data. All figures are in billions of 6)
dollars: GDP = CONSUMPTION + GROSS INVESTMENT
+GOVERNMENT SPENDING + NET EXPORT
(EXPORT - IMPORT)

90+20+15+(8-12) = 121

the calculate NDP =


net domestic product = GDP -
DEPRECIATION(CONSUMPTION OF FIXED
CAPITAL =
121 - 5 = 116

Refer to the data. NDP (net domestic product) is:


A) $116. B) $125. C) $150. D) $121.

7) Inflation means that: 7)


A) all prices are rising and at the same rate.
B) real incomes are rising.
C) all prices are rising, but at different rates.
D) prices on average are rising, although some particular prices may be falling.

8) Kara voluntarily quit her job as an insurance agent to return to school full time to earn 8)
an MBA degree. With degree in hand, she is now searching for a position in 1.frictionally unemployed
- leaves the job to get
management. Kara presently is: another job
A) frictionally unemployed. B) structurally unemployed. 2. structurally unemployed
-
C) not a member of the labor force. D) cyclically unemployed. 3. cyclically unemployed -
aggregated demand slows
down
9) Answer the question on the basis of the following information about the hypothetical 9)
economy of Scoob. All figures are in millions.

Refer to the given information. The unemployment rate in Scoob is:


A) 6.9 percent. B) 3.2 percent. C) 2.5 percent. D) 5.0 percent.
Labor Force = population - not in labor force OR labor force = unemployed + employed

Population Unemployment Rate = unemployed/labor force

Not in labor force:


below 16 Labor force
retired 1- employed
home maker 2- unemployed
instittionalized Answer :
Labor force = 95 + 7 =
102
Unemployment rate = 7/102 X 100
= 6.9%

2
10) Answer the question on the basis of the following data. All figures are in billions of 10)
dollars.

Refer to the data. GDP is:


A) $422. B) $492. C) $390. D) $417.
Check Q 11 on phone

11) Official unemployment statistics: 11)


A) include cyclical and structural unemployment but not frictional unemployment.
B) understate unemployment because individuals receiving unemployment
compensation are counted as employed.
C) understate unemployment because discouraged workers are not counted as
unemployed.
D) overstate unemployment because workers who are involuntarily working part
time are counted as being employed.

12) Suppose there are 10 million part-time workers and 90 million full-time workers in an 12)
economy. Five million of the part-time workers switch to full-time work. As a result:
A) the official unemployment rate will fall.
B) the official unemployment rate will rise.
C) the size of the labor force will increase.
D) the official unemployment rate will remain unchanged.

3
Answer Key
Testname: QUIZ 1 MACRO SPRING 18

1) D
2) B
3) B
4) D
5) D
6) A
7) D
8) A
9) A
10) D
11) C
12) D

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