Question 1

$$\begin{array} { l l } 
\text { Employed } & 5000 \
\text { Unemployed } & 500 \
\text { Not in thelabour force } & 2000
\end{array}$$
-The unemployment rate:

Accepted Answer

A)  is 10% 
B)  is 9.09% 
C)  is 11%
 
D) cannot be determined from this information 
A)  is 10% 
B)  is 9.09% 
C)  is 11%
 
D) cannot be determined from this information

Question 2

Gross domestic product measured in current dollars is:

Accepted Answer

A)  nominal GDP 
B)  real GDP 
C)  current GDP 
D)  constant GDP 
A)  nominal GDP 
B)  real GDP 
C)  current GDP 
D)  constant GDP

Question 3

If planned injections are greater than planned withdrawals, the rate of inflation might rise.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not an economic cost of unemployment?

Accepted Answer

A)  an increase in wages for those workers who are employed as there are fewer people in the labour force 
B)  loss of tax revenue to the government 
C)  lower profit levels for firms than if there was full employment 
D)  loss of income to the individual who becomes unemployed 
A)  an increase in wages for those workers who are employed as there are fewer people in the labour force 
B)  loss of tax revenue to the government 
C)  lower profit levels for firms than if there was full employment 
D)  loss of income to the individual who becomes unemployed

Question 5

To distinguish between nominal and real figures we must adjust for:

Accepted Answer

A)  low economic growth 
B)  the rate of unemployment 
C)  a balance of payments deficit 
D)  inflation 
A)  low economic growth 
B)  the rate of unemployment 
C)  a balance of payments deficit 
D)  inflation

Question 6

Of the following four countries which had the highest rate of economic growth over the period 2000 to 2007:

Accepted Answer

A)  Australia 
B)  Japan 
C)  United States of America 
D)  United Kingdom 
A)  Australia 
B)  Japan 
C)  United States of America 
D)  United Kingdom

Question 7

Which of the following statements is FALSE?

Accepted Answer

A)  Short- term ups and downs in the economy are known as business cycles. 
B)  Business cycles are always symmetric - the length of an expansion is the same as the length of a contraction. 
C)  The rate of change in economic activity is used to assess whether an economy is expanding or contracting. 
D)  During a recession, output and employment are falling. 
A)  Short- term ups and downs in the economy are known as business cycles. 
B)  Business cycles are always symmetric - the length of an expansion is the same as the length of a contraction. 
C)  The rate of change in economic activity is used to assess whether an economy is expanding or contracting. 
D)  During a recession, output and employment are falling.

Question 8

A retired person is considered to be:

Accepted Answer

A)  employed 
B)  not in the labour force 
C)  unemployed 
D)  underemployed 
A)  employed 
B)  not in the labour force 
C)  unemployed 
D)  underemployed

Question 9

A household that spends less than it receives in income during a given period is:

Accepted Answer

A)  running a surplus 
B)  investing 
C)  saving 
D)  receiving transfer payments 
A)  running a surplus 
B)  investing 
C)  saving 
D)  receiving transfer payments

Question 10

$$\begin{array} { l l } 
\text { Employed } & 5000 \
\text { Unemployed } & 500 \
\text { Not in thelabour force } & 2000
\end{array}$$
-The labour force:

Accepted Answer

A)  equals 5000 
B)  equals 5500 
C)  equals 7500 
D)  cannot be determined from this information 
A)  equals 5000 
B)  equals 5500 
C)  equals 7500 
D)  cannot be determined from this information

Question 11

Which of the following statements is FALSE?

Accepted Answer

A)  When unanticipated inflation occurs regularly, the degree of risk associated with investments in the economy increases. 
B)  Inflation that is higher than expected benefits debtors, and inflation that is lower than expected benefits creditors. 
C)  Whether you gain or lose during a period of inflation depends on whether your income rises faster or slower than the prices of things you buy. 
D)  There are no costs or losses associated with correctly anticipated inflation. 
A)  When unanticipated inflation occurs regularly, the degree of risk associated with investments in the economy increases. 
B)  Inflation that is higher than expected benefits debtors, and inflation that is lower than expected benefits creditors. 
C)  Whether you gain or lose during a period of inflation depends on whether your income rises faster or slower than the prices of things you buy. 
D)  There are no costs or losses associated with correctly anticipated inflation.

Question 12

The costs associated with restaurants having to print new menus due to inflation are classified by economists as 'menu costs'.

Accepted Answer

A) True 
 B)False

Question 13

Suppose the inflation rate is seven percent and the nominal interest rate is ten percent, the real interest rate is:

Accepted Answer

A)  10% 
B)  7% 
C)  3% 
D)  17% 
A)  10% 
B)  7% 
C)  3% 
D)  17%

Question 14

Why did Australia escape the worst of the global recession of 2008- 2009?

Accepted Answer

Australia exports large quantities of mi

Question 15

Imported goods and services are not included in aggregate demand.

Accepted Answer

A) True 
 B)False

Question 16

Why do economists focus on real figures, while politicians sometimes use real and sometimes nominal figures?

Accepted Answer

'Real' figures, such as real growth rate

Question 17

The unemployment rate is:

Accepted Answer

A)  the difference between the total number of people in the labour force and the number of employed 
B)  the ratio of the number of people unemployed to the total number in the population 
C)  the ratio of the number of unemployed to the total number of people in the labour force 
D)  the ratio of those unemployed to those employed 
A)  the difference between the total number of people in the labour force and the number of employed 
B)  the ratio of the number of people unemployed to the total number in the population 
C)  the ratio of the number of unemployed to the total number of people in the labour force 
D)  the ratio of those unemployed to those employed

Question 18

A fall in the inflation rate means there has been a general decrease in the price level.

Accepted Answer

A) True 
 B)False

Question 19

Aggregate demand is comprised of:

Accepted Answer

A)  C + I + G - X - M 
B)  C + I + G + (X - M) 
C)  C + I + G + (M - X) 
D)  C + I + G + X + M 
A)  C + I + G - X - M 
B)  C + I + G + (X - M) 
C)  C + I + G + (M - X) 
D)  C + I + G + X + M

Employed 5000 Unemployed 500 Not in thelabour force 2000 -The unemployment rate:

Gross domestic product measured in current dollars is:

If planned injections are greater than planned withdrawals, the rate of inflation might rise.

Which of the following is not an economic cost of unemployment?

To distinguish between nominal and real figures we must adjust for:

Of the following four countries which had the highest rate of economic growth over the period 2000 to 2007:

Which of the following statements is FALSE?

A retired person is considered to be:

A household that spends less than it receives in income during a given period is:

Employed 5000 Unemployed 500 Not in thelabour force 2000 -The labour force:

Which of the following statements is FALSE?

The costs associated with restaurants having to print new menus due to inflation are classified by economists as 'menu costs'.

Suppose the inflation rate is seven percent and the nominal interest rate is ten percent, the real interest rate is:

Why did Australia escape the worst of the global recession of 2008- 2009?

Imported goods and services are not included in aggregate demand.

Why do economists focus on real figures, while politicians sometimes use real and sometimes nominal figures?

The unemployment rate is:

A fall in the inflation rate means there has been a general decrease in the price level.

Aggregate demand is comprised of:

Economic Issues

Markets, Demand and Supply

Markets in Action

Background to Supply

Perfect Competition and Monopoly

Imperfect Competition

Market Failures and Government Policy

Wages and Employment

The Determination of Gross Domestic Product

Banking, Money and Interest Rates

Inflation

Macroeconomic Policy

Globalisation and International Trade

Balance of Payments and Exchange Rates

Filters

Exam 9: Introduction to Macroeconomics

Employed 5000 Unemployed 500 Not in thelabour force 2000 -The unemployment rate:

Gross domestic product measured in current dollars is:

If planned injections are greater than planned withdrawals, the rate of inflation might rise.

Which of the following is not an economic cost of unemployment?

To distinguish between nominal and real figures we must adjust for:

Of the following four countries which had the highest rate of economic growth over the period 2000 to 2007:

Which of the following statements is FALSE?

A retired person is considered to be:

A household that spends less than it receives in income during a given period is:

Employed 5000 Unemployed 500 Not in thelabour force 2000 -The labour force:

Which of the following statements is FALSE?

The costs associated with restaurants having to print new menus due to inflation are classified by economists as 'menu costs'.

Suppose the inflation rate is seven percent and the nominal interest rate is ten percent, the real interest rate is:

Why did Australia escape the worst of the global recession of 2008- 2009?

Imported goods and services are not included in aggregate demand.

Why do economists focus on real figures, while politicians sometimes use real and sometimes nominal figures?

The unemployment rate is:

A fall in the inflation rate means there has been a general decrease in the price level.

Aggregate demand is comprised of:

Economic Issues

Markets, Demand and Supply

Markets in Action

Background to Supply

Perfect Competition and Monopoly

Imperfect Competition

Market Failures and Government Policy

Wages and Employment

The Determination of Gross Domestic Product

Banking, Money and Interest Rates

Inflation

Macroeconomic Policy

Globalisation and International Trade

Balance of Payments and Exchange Rates

Filters