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WorksheetsCHAPTER 7, 8 AND 11
Total questions: 20
Worksheet time: 10mins
Which of the following is a macroeconomic statement?
A. The gross profits of all Malaysian businesses were RM10 billion last year.
B. The price of chicken declined by 1% last year.
C. Proton’s profits increased in year 2007.
D. The productivity of manufacturing workers increased by 2% in 2006.
These are all macroeconomic objectives except
A. To achieve price stability.
B. Safe environment.
C. To achieve economic growth.
D. To achieve a Favourable balance of payment.
_________ is not a macroeconomic objective.
A. Favourable balance of payment.
B. Price stability.
C. Free education.
D. Economic growth.
All of the followings are regarded as injections into the circular flow of income of a particular country except
A. Purchase of domestic goods by foreign countries.
B. Purchase of foreign products.
C. Investment expenditure by business firms.
D. Government purchase of local goods.
Gross investment minus depreciation is
A. private investment
B. the change in business inventories
C. the capital consumption allowance
D. net investment
Profits earned in Malaysia by foreign-owned companies are included in
A. both GDP and GNP
B. neither GDP nor GNP
C. GNP but not GDP
D. GDP but not GNP
National income accounting differentiate between final and intermediate products in order to avoid the problems of
A. Inflation
B. Depreciation
C. Double counting
D. Wrong information
8. The circular flow of income for a two sector model shows
A. The flow of income to the household and government sectors
B. The flow of income between the household and business sectors
C. The flow of income between the household, business and government sectors
D. The flow of income between government and business sectors
Gross Domestic Product (GDP) measured in terms of the price of the base year is
A. Nominal GDP
B. Current GDP
C. Real GDP
D. Base GDP
the total value of all income earned by Malaysian is called
A. national income
B. gross domestic income
C. income paid abroad
D. gross national product
The equation for gross domestic product (GDP) using the expenditure approach is
A. GDP = C+I+G+X-M
B. GDP = C+I+G+X+M
C. GDP = C-I-G-X+M
D. GDP = C+ I + G – X -M
With respect to international trade, specialization means that
A. Each country consumes what it produces.
B. Most goods and services that are traded internationally are produced in only one or two nations.
C. Each country consumes a small fraction of what it produces.
D. Labor and other resources in a nation are used to produce the products and services for which they are best suited.
Which of the following statements is false?
A. A quota is a limit on the quantity of goods allowed to enter a country.
B. A tariff will increase the price of foreign goods.
C. If a country imports more than it exports, it is running a balance of trade deficit.
D. An embargo is a tax on an imported good.
A tariff on a product
A. Makes domestic sellers better off and domestic buyers worse off.
B. Makes domestic sellers and domestics buyers worse off
C. Makes domestic sellers and domestics buyers better off.
D. Makes domestic sellers worse off and domestic buyers better off.
The basic difference between the economic effects of a tariff and a quota is that
A. Quota generates revenue for the government.
B. Tariff generates revenue for the government.
C. Tariff and quota raise product prices.
D. Quota raises products prices, but a tariff does not raise products prices
Which of the following in NOT an advantage of international trade?
A. Bigger market for local firms
B. Efficiency in production of goods and services due to competition
C. Deficits in the balance of payments
D. Greater self-sufficiency for each trading nation
1. Which of the following is not a reason for imposing trade barrier?
A. To protect infant industry.
B. To diversify the economy
C. To solve the unemployment problem in country
D. To stabilize the social imbalances in the country
Which of the following is true about embargo
A. A limit on the quantity of imported products
B. The law that bars trade of a certain product
C. The prices of the imported products to domestic consumers
D. The ability of imported products to compete with domestic products
Which of the following is The best description of a quota?
A. An excise tax that is designed to place foreign producers at a competitive disadvantage in selling in domestic market.
B. A specification of the maximum amount of a product that may be imported in any period of time.
C. Regulation or licensing related to the quality or safety of imported goods.
D. Agreement adopted exporting nations to limit exports to another country.
A system that limits a person ability to conduct transactions by using foreign currencies is known as:
A. tariff
B. quota.
C. exchange control.
D. subsidy on export.
