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ECO403 Macroeconomics Quiz No. 1 Solution and Discussion Fall 2014
Disposable Personal income is equal to personal income minus------------
Personal taxes.
Indirect business taxes.
Capital consumption allowance.
Income earned but not received.
Which one of the following is correct?
M * V = P + Y
M * V = P * Y
M + V = P – Y
M * V = P/ Y
Which of the following best describes the definition of money?
The stock of assets used for transactions.
The number of dollars in the hands of the public.
A store of value, a unit of account, and a medium of exchange.
All of the given options.
National saving is equal to ---------.
Y – C + G
Y – C – G
Y + C – G
Y + C + G
Assume the first three units of labor input generate corresponding total outputs of 700, 770 and 830. The marginal product of the second unit of labor is:
70
700
770
1470
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The GDP deflator can be used:
In a given year, a country's exports total Rs39 million & imports are Rs17 million. Its net exports are:
Rs.56 million.
Rs. 39 million.
Rs. +22 million.
Rs. - 2 million.
GNP is $750 billion and depreciation is $200 billion, then net national product:
Is $550 billion.
Is $640 billion.
Is $950 billion.
Cannot be determined from this information.
The quantity of money in an economy is Rs.7 million, and the velocity of circulation is 3. GDP in this economy is------------- million.
4
-4
7
21
If an economy has population of 20 million people, 10 million unemployed and 7 million employed, 5 million adult populations, the labor force participation rate is:
17/5 *100
20/5*100
The _______ rate is equal to the number of _______ divided by the _______multiply by 100.
Unemployment; unemployed; labor force
Unemployment; employed; labor force
Employment; unemployed; labor force
Labor force participation; Adult population; labor force
Economics is a __________word.
Latin.
Greek.
English
None of given options.
Human wants are:
Always fixed.
Limited.
Unlimited.
Likely to decrease over time.
If consumer incomes increase, the demand for commodity “k”:
Will shift to the left.
Will shift to the left than right.
Will shift to the right.
Will necessarily remain unchanged.
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