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3rd Quarter Review Questions

Total questions: 13

Worksheet time: 7mins

Name
Class
Date
1.

When the price level increases, goods in other countries are relatively cheaper. As a result, a country's imports increase, displacing the demand for domestic production. What is the term for the relationship described above?

a)

The interest rate effect

b)

The real wealth effect

c)

The exchange rate effect

d)

Sticky wage theory

2.

What macroeconomic objective is aimed in the provided situation?

THE BANGKO SENTRAL NG PILIPINAS PUMPED P2 TRILLION INTO THE PHILIPPINE ECONOMY IN 2020 TO FIGHT THE PANDEMIC.

Source: Lucas, D. L. (2021, January 7). BSP pumped P2 trillion into PH economy in 2020 to fight pandemic. INQUIRER.Net. https://business.inquirer.net/315271/bsp-pumped-p2-trillion-into-ph-economy-in-2020-to-fight-pandemic_

a)

satisfactory balance of payments              

b)

stable and gently rising price level            

c)

high employment with low employment                   

d)

a high and growing level of national output

3.

From a mainstream economic perspective, what are the main goals of macroeconomic analysis?

I.               high and growing GDP

II.              low inflation rates or price stability

III.            satisfactory balance of payments

IV.            high employment and low unemployment rates

a)

I only

b)

II and III

c)

I and IV

d)

I, II, III, and IV

4.

What kind of tariff is too high aiming to absolutely discourage the importation of goods?

a)

Prohibitive tariff

b)

Specific tariff

c)

Ad valorem tariff

d)

Compound tariff

5.

Theoretically,:

I. national income is equal to national expenditure

II. national output is equal to national expenditure

a)

Both statements are correct

b)

 Only the first statement is correct.

c)

Only the second statement is correct.

d)

Both statements are incorrect.

6.

Which describe/s the output method in calculating for the Gross Domestic Product? The output method calculates the GDP by getting the:

I.      value of all incomes in the economy

II.     total value of all goods and services a nation produces

III.   value of all spending on goods and services in the economy

IV.   summation of all the value-added of the market value of the production of major sectors

a)

II only

b)

III only

c)

I and III

d)

II and IV

7.

What is the value of real GDP that all sectors are willing to purchase at different price levels?

a)

Aggregate Demand

b)

Aggregate Supply

c)

Demand

d)

Supply

8.

What is the term used to refer to measures employed by governments to influence economic activity, specifically by manipulating the supplies of money and credit and by altering rates of interest?

a)

Fiscal Policy

b)

Monetary Policy

c)

Monetary Supply Process

d)

Monetary Supply Control Process

9.

In national-income accounting, double counting

a)

Occurs when the value of some output is omitted in the calculation of national income

b)

Occurs when the value of output is counted more than once in the calculation of national income

c)

Means that consumption will always be less than GDP

d)

Leads to an underestimation of GDP in any given period

10.

Total value added in an economy is equal to the value of

a)

Sum of the value of primary, intermediate and final goods

b)

All final and intermediate goods produced

c)

All final goods produced

d)

All inputs and outputs in the economy

11.

Which of the following makes a correct distinction between the short run and the long run?

a)

Short run: wages are fully flexible; long run: wages are fixed

b)

Short run: wages are fixed; long run: wages are fully flexible

c)

Short run: aggregate supply slopes downwards; long run: aggregate supply slopes upwards

d)

Short run: less than six months have passed; long run: more than six months have passed

12.

The difference between GDP and GNP is equal to:

a)

Value of exports minus the value of imports

b)

Net factor income from abroad

c)

Net foreign lending

d)

Income of non-residents

13.

Which of the following statements about national income accounting is correct?

a)

The total value added in the economy is equal to the sum of all components in the circular flow of expenditure and income

b)

GDP on the expenditure side is calculated by adding up all the income claims generated by the act of production

c)

The value of the expenditure on a nation’s output is equal to the total income claims generated by producing that output

d)

GDP on the income side is calculated by adding up total expenditure for each of the main components of final output