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Worksheetsmacroeconomic
Total questions: 62
Worksheet time: 31mins
The adage, "There is no such thing as a free lunch," means
even people on welfare have to pay for food.
the cost of living is always increasing.
people face tradeoffs.
all costs are included in the price of a product.
Long is an athlete. He has $120 to spend and wants to buy either a heart rate monitor or new running shoes. Both the heart rate monitor and running shoes cost $120, so he can only buy one. This illustrates the principle that
people face trade-offs.
rational people think at the margin
trade can make everyone better off
people respond to incentives
When society requires that firms reduce pollution, there is
a tradeoff because of reduced incomes to the firms' owners and workers
a tradeoff only if some firms are forced to close.
a tradeoff only if some firms are forced to close.
no tradeoff, since everyone benefits from reduced pollution.
Which of the following is true?
Efficiency refers to the size of the economic pie; equality refers to how the pie is divided.
Government policies usually improve upon both equality and efficiency.
As long as the economic pie continually gets larger, no one will have to go hungry.
Efficiency and equality can both be achieved if the economic pie is cut into equal pieces.
Minister Tran Tuan Anh wants to increase taxes on people with high incomes and use the money to help the poor. Minister Tien Dung argues that such a tax will discourage successful people from working and will therefore make society worse off. An economist would say that
we should agree with Mr. Tuan Anh.
we should agree with Mr. Tien Dung.
a good decision requires that we recognize both viewpoints.
there are no tradeoffs between equity and efficiency.
Suppose that you have received $300 as a birthday gift. You can spend it today or you can put the money in a bank account for a year and earn 5 percent interest. The opportunity cost of spending the money today, in terms of what you could have after one year, is
$0
$15
$305
$315
Which of the following statements exemplifies a principle of individual decision-making?
Trade can make everyone better off
Governments can sometimes improve market outcomes
The cost of something is what you give up to get it
All of the above are correct
Long spends an hour studying instead of watching TV with his friends. The opportunity cost to him of studying is
the improvement in his grades from studying for the hour
the improvement in his grades from studying minus the enjoyment of watching TV
the enjoyment he would have received if he had watched TV with his friends
Since Long chose to study rather than to watch TV, the value of studying must have been greater to him than the value of watching TV
People are willing to pay more for a diamond than for a bottle of water because
the marginal cost of producing an extra diamond far exceeds the marginal cost of
producing an extra bottle of water
the marginal benefit of an extra diamond far exceeds the marginal benefit of an extra bottle of water
producers of diamonds have a much greater ability to manipulate diamond prices than producers of water have to manipulate water prices
water prices are held artificially low by governments, since water is necessary for life
Suppose the cost of flying a 200-seat plane for Vietjet Air is $100,000 and there are 10 empty seats on a flight. If the marginal cost of flying a passenger is $200 and a standby passenger is willing to pay $300, the airline should
sell the ticket because the marginal benefit exceeds the marginal cost
sell the ticket because the marginal benefit exceeds the average cost
not sell the ticket because the marginal benefit is less than the marginal cost
not sell the ticket because the marginal benefit is less than the average cost
Huong is planning to sell her house, and she is considering making two upgrades to the house before listing it for sale. Replacing the carpeting will cost her $2,500 and replacing the roof will cost her $9,000. Huong expects the new carpeting to increase the value of her house by $3,000 and the new roof to increase the value of her house by $7,000.
She should make both improvements to her house
She should replace the carpeting but not replace the roof
She should replace the roof but not replace the carpeting
She should not make either improvement to her house
Suppose the cost of operating a 100 room hotel for a night is $10,000 and there are 5 empty rooms for tonight. If the marginal cost of operating one room for one night is $30 and a customer is willing to pay $60 for the night, the hotel manager should
rent the room because the marginal benefit exceeds the marginal cost
rent the room because the marginal benefit exceeds the average cost
not rent the room because the marginal benefit is less than the marginal cost
not rent the room because the marginal benefit is less than the average cost
As a student, Hương spends 40 hours per week writing term papers and completing homework assignments. On one axis of her production possibilities frontier is measured the number of term papers written per week. On the other axis is measured the number of homework assignments completed per week. Hương’s production possibilities frontier is a straight line if
she faces no trade-off between writing term papers and completing homework
assignments
she can switch between writing term papers and completing homework assignments at a
constant rate
the rate at which she can switch between homework assignments and term papers depends on the number of homework assignments she is completing and on the number of term papers she is writing
she is required by her professors to spend half of her time on term papers and the other half of her time on homework assignments
In an year, the real GDP of an economy
Always equal to potential GDP
Must always be less than potential GDP (GDP tiềm năng)
Will always be greater than potential GDP because of the tendency of developed nations to incur inflation
Maybe greater or less than potential GDP
The four parts of business cycle occur in the following order
Recession, trough, peak, expansion
Recession, trough, expansion, peak
Expansion, trough, peak, recession
Expansion, trough, recession, peak
What term is used to describe the lowest point of the business cycle
Expansion (phát triển)
Recession (giảm sút)
Peak (đỉnh)
Trough (đáy)
Inflation is
Indicated (thể hiện) by a rise in the price level
A general increase in the purchasing power of the monetary unit
An economic condition which results in the waste of resources
All of the above answers are correct
Gross Domestic Products (GDP) measures the
Number of final goods and services produced in the economy in a given
time period
Market value of old and new final goods and services sold in the
economy in a given time period
Number of final goods and services sold in the economy in a given time
period
Market value of final goods and services produced in the economy in a
given time period
Intermediate goods (hàng hóa trung gian) are exclude from GDP because
The premise of the question is incorrect because intermediate goods are
directly included in calculating GDP
Their inclusion would involve double counting
Their inclusion would understate GDP
Their represent goods that have never been purchased so they can not be
counted
If we import more than we export from the rest of the world we
Are running a trade surplus
Must borrow an equal amount of money from the rest of the world
Are helping to finance investment in the rest of the world
Can lend an equal amount to the rest of the world
Which country has experienced the highest GDP growth in recent
years?
China
USA
Russia
Greece
Which country has the largest total annual real GDP?
China
USA
Japan
Germany
Which of the following is true for Inflation?
The value of money increases during Inflation
The value of money decreases during Inflation
The value of money stays the same during Inflation
None of the above
Inflation is
decrease in the overall price level
an increase in the overall price level
an increase in the overall level of economic activity
a decrease in the overall level of economics activity
Megan recently borrowed money to purchase an automobile at a nominal interest rate of 8% per year. If the inflation rate is 6% per year, what is the real rate of interest on the loan?
6% per year
8% per year
4% per year
2% per year
Which is the best way to have a healthy growing economy with a low rate of inflation over a long period of time?
Increase productivity
Monetize the federal debt.
A greater centralization of power in the hands of the federal government.
If the inflation rate is 14% per year, and your nominal income increases by 13% per year, your real incomeIf the inflation rate is 14% per year, and your nominal income increases by 13% per year, your real income
declines slightly.
increases slightly.
increases substantially.
does not change.
Economic growth measures the
Growth of productivity
Increase in nominal income
Increase in output
None of the above
Which of the following explains the term economic growth
Increase in per capita production
Increase in per capita real income
Structural change in the economy
All of the above
When an economy produces more output per capita the economy is said to be having
Inflation
Economic growth
Economic planning
Living standard
The rate of growth of an economy mainly depends upon
The rate of growth of the labour force
The proportion of national income saved and invested
The rate of technological improvements
All of the above
Productivity of an organization is equal to
Output / Input
Output x Input
Input / Output
Output - Input
Due to Increased Productivity, workers can get?
Punishment from employer
Sickness
Half of the salary
Higher salary and reduced working hours
Increased productivity benefits to?
Employee
Employee and industry
Employee industry and nation
Nobody
Which of the following factors responsible for increase in productivity?
Improved raw materials
Better technology
Good working conditions
All the above
Which of the following is not considered for assessment of the standard of living?
Per capita income
Standard of education
Quality health care
Number of political party
Economic development as measured by the United Nations means...
a. An increase in the value of the output of a country’s goods and services
The improvement in a country’s wealth and the living conditions of its people
The division of a nation’s jobs into different sectors
The quality and price of goods imported into a country
The value of a product compared to the needed labor
Development means increasing standards and quality of life
True
False
Development is measured of a country’s?
Economic Health
Social Condition
Standards Of Living
All The Above
When a business firm sells a bond, it has obtained equity finance
True
Fales
People who buy shares in a firm have loaned money to the firm
True
False
Mutual funds reduce a shareholder's risk by purchasing a diversified
portfolio
True
False
UK government bonds pay less interest than corporate bonds issued by UK companies because the government bonds carry less credit risk.
True
False
In a closed economy, saving is what remains after consumption expenditures and government purchases.
True
False
Public saving is always positive.
True
False
In a closed economy, investment is always equal to saving regardless of where the saving came from - public or private sources.
True
False
Investment is the purchase of capital equipment and structures.
True
False
If you save money this week and lend it to your flatmate to buy food for consumption, your act of personal saving has increased national saving.
True
False
The quantity supplied of loanable funds is greater if real interest rates are higher.
True
False
If the real interest rate in the loanable funds market is temporarily held above the equilibrium rate, desired borrowing will exceed desired lending and the real interest rate will fall.
True
False
A reduction in the budget deficit should shift the supply of loanable funds to the right, lower the real interest rate, and increase the quantity demanded of loanable funds.
True
False
Public saving and the government's budget surplus are the same thing.
True
False
If the government wanted to increase the rate of growth, it should raise taxes on interest and dividends to shift the supply of loanable funds to the right.
True
False
An increase in the budget deficit that causes the government to increase its borrowing shifts the demand for loanable funds to the right.
True
False
Which of the following is an example of equity finance?
Corporate bonds
Bank loan
All of these answers are equity finance.
Government bonds
Company shares
Credit risk refers to a bond's
probability of default.
price-earnings ratio.
dividend.
tax treatment.
term to maturity.
A financial intermediary is a middleperson between
buyers and sellers.
husbands and wives.
borrowers and lenders.
labour unions and firms.
National saving (or just saving) is equal to
none of these answers.
investment + consumption expenditures.
private saving + public saving.
GDP - government purchases.
GDP + consumption expenditures + government purchases.
Which of the following statements is true?
Long-term bonds tend to pay less interest than short-term bonds.
Government bonds pay less interest than comparable corporate bonds.
Investment funds are riskier than single stock purchases because the performance of so many different firms can affect the return of a mutual fund.
A stock index is a directory used to locate information about selected stocks.
If government spending exceeds tax collections,
there is a budget deficit.
none of these answers
there is a budget surplus.
private saving is positive.
public saving is positive.
If the public consumes €100 billion less and the government purchases €100 billion more (other things unchanging), which of the following statement is true?
Saving is unchanged.
There is an increase in saving and the economy should grow more quickly.
There is a decrease in saving and the economy should grow more slowly.
There is not enough information to determine what will happen to saving.
Which of the following financial market securities would probably pay the highest interest rate?
A bond issued by a start up company
A government bond issued by the government of France.
A bond issued by a blue chip company
An investment fund with a portfolio of corporate bonds issued by blue chip companies.
