Macroeconomics

(a)   controls a Government's revenue and spending is the hand of the Ministry of Finance.

What is Gross Domestic Product (GDP) means?

• The total value of goods and services produced in a country in a single year in current (actual) prices.

• The total value of goods and services produced in a country in a single year in constant prices.

This refers to the purchase of goods and services by individuals or households.

• Investment

• Export

• Import

• Consumption

Which method of protection raises revenue for the government?

• Domestic subsidies

• Embargo

• Quota

• Tariff

Which of these is NOT a characteristic of an unemployed person?

• He/she does not work

• He/she has made specific efforts to find a job

• He/she is laid off from a job in the succeeding months

• He/she is undergoing a career change

The purpose of regulating the money supply by the central bank is to:

• promote economic growth

• keep inflation under control

• all the answers above

• keep the economy from overheating or slowing down too quickly

Which one is not an economic policy?

• Open door policy

• Monetary Policy

• Fiscal policy

• Industrial Policy

In order to help the economy grow, the government can

• increase spending

• decrease spending

• lower taxes

• raise taxes

Fiscal policy deals with:

• taxation

• government's revenue and spending

• government's borrowing

• all the answers above

in the consumption funciton, C= a+bY,

• 'a' varies with change in income

• 'C' is independent of Y

• 'a' and 'b' varies with income while Y is constant