Wednesday, July 8, 2009

ECO401- Economics 7th july page 3

Kindly do make vuhelps your default page and keep viewing it to get up to date information about current fresh exams. Also follow the blog. Send your papers to make them here uptodate at vuhelps@gmail.com or feel free to call at 03455242488
Question No: 32 ( Marks: 1 ) - Please choose one
Which of the following is NOT a stock variable?

► Government debt.
► Capital.
► The amount of money held by the public.
► Inventory investment.

Question No: 33 ( Marks: 1 ) - Please choose one
Suppose that your income increases from $100,000 to $150,000 and your consumption increases from $80,000 to $120,000. Your Marginal Propensity to Save (MPS) is:

► 0.2.
► 0.4.
► 0.6.
► 0.8.

Question No: 34 ( Marks: 1 ) - Please choose one
Which of the following plays the key balancing role in making sure that the economy reaches and stays at equilibrium at the potential output level?

► Real exchange rate.
► The production function.
► Real price level.
► Real interest rate.

Question No: 35 ( Marks: 1 ) - Please choose one
If injections are less than withdrawals at the full-employment level of income then there arises:

► A deflationary gap.
► Hysteresis.
► Hyperinflation.
► An inflationary gap.

Question No: 36 ( Marks: 1 ) - Please choose one
The labour force is made up of:

► The number of people employed minus the number of people unemployed.
► The number of people employed plus the number of people unemployed.
► Just the number of people employed.
► The whole population.

Question No: 37 ( Marks: 1 ) - Please choose one
Deflation is:

► An increase in the overall level of economic activity.
► An increase in the overall price level.
► A decrease in the overall level of economic activity.
► A decrease in the overall price level.

Question No: 38 ( Marks: 1 ) - Please choose one
Which of the following will result if there is a decrease in aggregate demand?
► Expansion; inflation.
► Recession; deflation.
► Expansion; deflation.
► Recession; inflation.

Question No: 39 ( Marks: 1 ) - Please choose one
A decrease in the natural rate of unemployment will:
► Shift the Phillips curve to the left.
► Result in a decrease in the inflation rate along the Phillips curve.
► Shift the Phillips curve to the right.
► Result in an increase in the inflation rate along the Phillips curve.

Question No: 40 ( Marks: 1 ) - Please choose one
The Phillips curve will shift to the right:

► If there is a decrease in the expected inflation rate.
► If there is an increase in the expected inflation rate.
► If there is a decrease in the natural rate of unemployment.
► If there is a favorable supply shock.

Question No: 41 ( Marks: 1 ) - Please choose one
If a country has flexible exchange rate and has more rapid inflation rate than other countries, its currency will:

► Appreciate.
► Depreciate.
► Not effect.
► All of the given are possible.

Question No: 42 ( Marks: 1 ) - Please choose one
The nominal exchange rate is defined as the:

► Market on which currencies of various nations are traded for one another.
► Price of one unit of foriegn good in terms of domestic good.
► Price of one unit of foriegn currency in terms of domestic currency.
► All of the given options.

Question No: 43 ( Marks: 1 ) - Please choose one
Current account deficit is equal to:

► Private sector resource deficit.
► Government budget deficit.
► Private sector resource deficit + Government budget deficit.
► None of the given options.

Question No: 44 ( Marks: 1 ) - Please choose one
In the exogenous growth model, if investment exceeds depreciation, the capital stock will ----------- and output will-------------- until the steady state is attained.
► Increase; increase.
► Increase; decrease.
► Decrease; decrease.
► Decrease; increase.

Question No: 45 ( Marks: 1 ) - Please choose one
Endogenous growth theory differs in what essential aspect from the Solow theory of economic growth?

► Endogenous growth theory is a monetary theory whereas the Solow theory is a real theory.
► Endogenous growth theory assumes diminishing returns to capital and the Solow theory assumes constant returns.
► In endogenous growth theory, economies with the same technology and saving rate need not converge to the same steady state as in the Solow model.
► All of the given options are correct.

Question No: 46 ( Marks: 1 ) - Please choose one
A currency appreciation should:

► Reduce net exports and therefore increase aggregate demand.
► Raise net exports and therefore decrease aggregate demand.
► Reduce net exports and therefore decrease aggregate demand.
► Raise net exports and therefore increase aggregate demand.

Question No: 47 ( Marks: 1 ) - Please choose one
M1 component of money supply consists of:


► Paper currency and coins.
► Paper currency, coins and check writing deposits.
► Paper currency, coins, check writing deposits and savings deposits.
► Paper currency, coins, check writing deposits, savings deposits and certificates of deposits.

Regards Vuhelps

No comments:

Advertisement