WorksheetsCHAP 13
Total questions: 61
Worksheet time: 31mins
Which is component of GDP according to expenditure approach:
The rent earned by land
The wage earned by workers
Investment in the businesses
Interest earned by capital investment
Which is component of GDP according to income approach:
Government spending
Spending for consumption by households
Net export
The profit earned by entrepreneurship
What is role of the gov in national economy?
Government plays as an important buyer for necessities.
Government mainly determines the price equilibrium.
Government acts as the producer of certain goods and services to serve the public as a whole.
Government makes sure that the national economy does not fall in recession.
Which NOT functions of government within the national economy?
Producer of certain goods and services.
Purchaser of final goods and services and then adds to total consumption expenditure.
Controller of market mechanism.
Actor to make transfer payment from one section of economy to another
The situation in which a household spends total additional income for consumption rather than saving has “Marginal propensity to consume (MPC):
= 1
> 1
= 0
< 1
An economy experiencing a decrease in its GDP for 2 consecutive quarters is considered to be in which phase of the business cycle?
Recession
Depression
Recovery
Boom
An extreme recession lasting three consecutive years or more and resulting in a decrease in annual GDP of as least 10% is defined as:
Recession
Depression
Recovery
Boom
Which of the followings refers to the feature of “RECOVERY” phase in business cycle?
Consumer demand falls rapidly
Average price level remains constant or increases slowly
Business failures occur as firms cannot to survive anymore
A reduction in inventory level
Which of the following refers to the signal of Deflation:
A decrease in general prices
An increase in general prices Inflation and stagnation.
Inflation and stagnation.
Decline in the purchasing power of money
Which of the following leads to cost push inflation?
An increase in tax rate
A decrease in government spending
An increase in interest rate
An increase in oil and gas prices
A country which has a higher inflation rate than its major trading partners experiences:
An increase in balance of payment.
A decrease in balance of payment
An increase in export
An excess of export than import
Fiscal policy is government policies on:
Taxation
Interest rate
Exchange rate
Cost of borrowing
Which of the following factors is NOT included in the national influences of the macroeconomic environment?
Government policy
Business cycle
Market mechanism
Inflation
What factor does not directly determine the demand of a certain goods or service?
Cost of production
The price level
The households’ disposal income
Fashion and expectation
Which of the following factors is the direct determinant of quantity of supply under business perspective?
The level of technology application
The disposal income
The level of government spending
The change in consumption pattern
Which of the following is the characteristic of “Inferior goods”?
An increase in income leads quantity of demand to increase to a certain level and then fall if income continues to increase.
A decrease in income leads to an increase in the quantity of demand to a certain point, and then a decrease in demand appears
An increase in income leads to an increase in quantity of demand
An increase in income leads to a decrease in quantity of demand
Price elasticity to demand (PED) has positive value for:
Normal goods
Inferior goods
Giffen goods
Substitutes
What type of product has the feature that an increase in price leads to an increase in quantity of demand and products sold in high-end market?
Giffen goods
Veblen goods
Necessities
Inferior goods
Amber manufactures pieces of classic furniture. Amber predicts that “If people’s income rises next year, then the demand for my furniture will increase”. The accuracy of Amber’s prediction depends on whether the pieces of furniture he produces:
are normal goods
have few substitutes
have many complements
have few complements
X and Y are 2 substitutes. When the price of X increases, the quantity of demand for Y will:
increase
not change
decrease
increase first and then decrease
If product A and product B are complements, the decrease in price of product A will lead to:
a decrease in quantity of demand of both product A and product B
an increase in quantity of demand of both product A and product B
an increase in quantity of demand of product A and a decrease in quantity of demand of product B
a decrease in quantity of demand of product A and an increase in quantity of demand of product B
Potatoes are a Giffen good. An increase in the price of potatoes will cause:
an increase in demand for substitutes for potatoes
a decrease in demand for potatoes.
an increase in demand for potatoes.
a decrease in demand for substitutes for potatoes.
The cross elasticity of demand between Product A and Product B is positive. The two products are:
complements
substitutes
unrelated
veblen goods
For the normal goods or necessities, value of PED is:
lower than 0
lower than 1
greater than 1
greater than 0
Demand curve which is a vertical straight line is the case of demand:
Being perfectly inelastic.
Being inelastic.
Being perfectly elastic.
Being unit elastic.
Demand curve - a horizontal straight line is the case of demand:
perfectly inelastic.
inelastic.
perfectly elastic.
unit elastic.
When demand is elastic, increase in price result in:
A fall in quantity of demand and an increase in total expenditure.
A fall in quantity of demand and a fall in total expenditure.
An increase in quantity of demand and an increase in total expenditure.
An increase in quantity of demand and a fall in total expenditure.
Demand for good is income elastic when income elasticity of demand is:
between 0 and 1
less than 0
greater than 1
equal 0
Demand for a good is negatively income elastic. The good is:
Giffen goods.
Veblen goods.
Inferior goods.
Necessities.
Cross elasticity will be 0 for:
2 goods are substitutes
2 goods are complements
Inter-related goods.
Unrelated goods.
The supple curve is a vertical straight line when supply:
perfectly inelastic.(hoàn toàn k co giãn)
unit elasticity of supply.
perfectly elastic.
elasticity.
Which NOT associated with conditions of perfect competition?
Suppliers earn ‘normal’ profits.
Consumers lack influence over market price.
Differentiated products.
A single selling price.
Government’s fiscal policy is considered as contractionary when:
Increased taxation without an increase in public spending
Decrease both public borrowing and taxation.
Increased both public borrowing and public spending.
Increased public spending and decreased taxation.
A shift of demand curve to the right could be caused by:
A fall in household income.
An increase in positive expectation about the market future.
A rise in the price of a complement.
A fall in the price of a substitute.
A shift of supply curve to the left could be caused by:
increase in cost of production.
increase in technology application.
increase in the prices of related goods.
decrease in the prices of other goods.
Which is feature of black market:
Maximum price is lower than equilibrium price.
Minimum price is higher than equilibrium price
Maximum price is higher than equilibrium price
Minimum price is lower than equilibrium price.
Price of a product is $2.5 per unit, on average 40,000 units of the product are sold each month. At a price of $3 per unit, on average 35,000 units per month are sold. The price elasticity of demand (PED) for the product and type of this product:
PED is -0.625 - normal and elastic demand.
PED is 0.625 - Giffen product and inelastic demand.
PED is -0.625 - normal product and inelastic demand.
PED is 0.625 - Giffen product and perfectly elastic demand.
Price of a product is $2.5 per unit, on average 40,000 units of the product are sold each month. At a price of $3.5 per unit, on average 55,000 units per month are sold. The price elasticity of demand (PED) for the product and type of this product are:
PED is 0.9375 - normal product
PED is 0.9375 - Giffen product
PED is -0.9375 - normal product
PED is -0.9375 - Giffen product
The price of Sea has fallen by 5% in the last month, and in the same period demand for Halcets where there has been no price change, has risen by 8%. What is the cross- price elasticity of demand between Sea and Halcets?
-1.600
-0.625
1.600
0.025
Market for a product is a natural monopoly. Production of the product must be associated with:
High marginal costs
Low marginal costs
Economies of scope acting as a barrier to entry
Low fixed costs.
The UK government has recently imposed a maximum price on product A which is set at lower level than its equilibrium price. In future, therefore, it can be expected that there will be:
excess supply of the product
excess demand for the product
no effect on supply but an increase in demand
no effect on demand but a decrease in supply
There has been a significant rise in factor costs for the Tempo product during recent months. It can be expected that there will be:
a contraction in demand and supply
an expansion in demand and supply
a contraction in demand and an expansion in supply
an expansion in demand and a contraction in supply
In the market for the Optica product, competitors not compete through price. Instead spending substantial sums of money on raising consumer awareness through advertising. There's some differentiation between products, often through branding. There're many buyers and sellers in the market. Market for Optica:
monopolistic (cạnh tranh nhưng có khác biệt giữa các sp)
oligopoly
perfect competition (tcả đều giống nhau)
monopoly
Which 3 associated with conditions of perfect competition?
Suppliers are price-makers (price-taker)
suppliers earn normal profits
consumers lack influence over market price
differentiated products
a single selling price
Minimum price for good is set by gov above the current free market equilibrium price. What is the effect (if any) on demand for and supply of good?
Demand for good falls; supply of good rises
Demand for good rises; supply of good falls
Demand & supply of good rise
There will be no effect on either demand for or supply of good
The basic economic problem facing all national economies is:
allocating scarce resources
inflation
unemployment
maximizing economic growth
Which of the following is regarded by economists as a factor of production?
Demand
Enterprise
Innovation
Supply
Which of the following is a source of economies of scale?
The introduction of a new product
The use of skills in production
Cost savings resulting from new production techniques
Bulk buying (tiết giảm chi phí) bằng cách mua nhiều
The marginal propensity to consume measures:
the relationship between changes in consumption and changes in consumer utility
the proportion of household incomes spent on consumer goods
the proportion of national income spent on consumer goods
the relationship between changes in income and changes in consumption
Which of the following is the correct sequences in a business cycle?
Boom, Recession, Depression, Recovery(phục hồi)
Recession, Recovery, Boom, Depression
Boom, Recovery, Recession, Depression
Recovery, Recession, Depression, Boom
The recession phase of the business cycle will normally be accompanied by all of the following except:
a rise in the rate of inflation
a fall in the level of national output
an improvement in the trade balance
a rise in the level of unemployment
The government may seek to reduce the rate of demand - pull inflation by any of the following means except:
reducing interest rate
reducing public expenditure
apply more stringent controls over bank lending
increasing VAT
Which of the following are effects of reduced interest rates?
(1) Consumer spending will increase
(2) Business investment will be encouraged
(3) Saving will increase
A. (1) only
B. (1) and (2) only
C. (2) and (3) only
D. (1), (2), and (3)
Which of the following is a fiscal policy measure by government?
A. To raise short-term interest rates in the money market
B. To support the exchange rate for the country's currency
C. To control growth in the money supply
D. To alter rates of taxation
"Supply side" economics concerns：
A. the behavior of the microeconomic supply curve
B. the supply of factors of production in response to changing levels of factor rewards
C. the behavior of the aggregate supply curve in connection with the levels of prices, income and employment
D. the effect that an increase in the supply of money has on inflation
If the government wishes to increase consumer spending, it should increase the rate of:
A. income tax
B. corporate tax
C. import duties
D. social security payment
Changes in the supply of a product which arise due to reduced costs of its manufacture will be represented on the product's supply curve by:
A. a shift to the right in the supply curve
B. a shift to the left in the supply curve
C. movements along the supply curve
D. none of these
Which of the following describes the cross elasticity of demand between the two complementary products?
A. Negative
B. Indeterminate
C. Zero
D. Positive
The government of Zeeland is concerned about demand-pull inflation. Which of the following statements describes the impact and cause of demand-pull inflation on Zealand's economy?
A. Price rise because of persistent excess of supply over demand in the economy as a whole
B. Price rise because of persistent excess of demand over supply in the economy as a whole
C. Price falls because of persistent excess of supply over demand in the economy as a whole
D. Price falls because of persistent excess of demand over supply in the economy as a whole
Which three of the following are determinants of demand?
A. Price
B. Cost of production
C. Income levels
D. Changes in production technology
E. Fashion
When demand for a good rises as incomes rise but then falls back as incomes pass a certain point, the good is termed:
A. giffen
B. normal
C. inferior
D. veblen
