KKday Singapore Summer Sale is here! ☀️ Plan your unforgettable family trip with KKday and enjoy up to 50% OFF ✨ kid-friendly activities and attractions from now till 12 August 2022. Singapore has many interesting and fun attractions for you and your little ones to have a good time together! The Singapore Zoo, Singapore Night Safari, River Wonders, Singapore Jurong Bird Park and Forest Play on Sentosa Island are all awaiting your arrival! ? Plan your journey ahead and book your tickets now ✈️. Click here to know more!
 

Macroeconomics Theory and Practice

Macroeconomics Theory and Practice


Question text

Economists use the term "business cycle" to refer to:
Select one:

Question text

The disposable income (net pay after taxes) a household receives can be disposed of in one of two ways: consumption or savings. where,

YD = disposable income

C = consumption

S = savings

Select one:

Question text

A severe recession in both scale and duration is called _____.
Select one:

Question text

_____ applied the concept of declining returns when he conjectured in 1798 (An Essay on the Principle of Population) that the world population would eventually outgrow the capability to produce food.
Select one:

Question text

_____- Aggregate Output (or National Income), Y = Aggregate Demand, AD
Select one:

Question text

In exchange rates,_____ means that they fluctuate day to day according to the market.
Select one:

Question text

The _____ test would involve entering economic growth rates for selected countries in a spreadsheet and statistically comparing growth rates for those two groups of years.
Select one:

Question text

Endogenous growth theory, first developed by _____
Select one:

Question text

_____ simply means that if the labor force grows at 2% per year and capital grows at 2% per year (the capital-labor ratio in this steady state model is constant) then output also grows at 2% per year.
Select one:

Question text

_____ an increase in government debt is accompanied by an increase in the foreign trade deficit (imports exceeds exports)
Select one:

Question text

The best available economic measure of quantity is ____________.
Select one:

Question text

Neoclassical growth model pioneered by Denison
Select one:
 

Question text

____________ cannot be used in empirical analysis.
Select one:

Question text

A growth rate is simply the amount of increase or decrease divided by the starting level.
Select one:
 

Question text

Floating means that exchange rate is steady or constant in day to day basis according to the market.
Select one:
 

Question text

If there is no technical progress, the output per capita will be on its growth level.

Select one:
 

Question text

Economic growth is the change in aggregate real GDP or average real GDP per person over time.
Select one:
 

Question text

The price of one currency in terms of another currency.
Select one:

Question text

Growth models focus on the long-run trend in output, more commonly called potential or full-employment output, rather than the short-run booms and busts in which an economy cycles around its long-term trend.
Select one:

Question text

The empirical test would involve entering economic growth rates for selected countries in a spreadsheet and statistically comparing growth rates for those two groups of years.
Select one:
 


Question text

Things that are available in sufficient amounts to satisfy all possible needs. There is no opportunity cost involved in their use or consumption.
Select one:
_____ simply means that if the labor force grows at 2% per year and capital grows at 2% per year (the capital-labor ratio in this steady state model is constant) then output also grows at 2% per year.
Select one:
Comparing growth rates across countries is not a problem despite differences in currencies because growth rates are _____ of the units of measurement.
Select one:
When many suppliers and many consumers (competitive) engaged in trade without interference from government (free).
Select one:
The overall goal of government economic policy is to promote economic _____.
Select one:
Analysis of the behavior of individual decision-making units (individuals, households, firms).
Select one:
When the amount that the quantity demanded exceeds the quantity supplied when the market price is below the equilibrium price.
Select one:
______ Latin term that used in economics means all other non-price factors that affect the amount we consume or produce do not change.
Select one:
The market value of final goods and services (i.e., sold to final consumers) produced by a nation during a specific period, usually 1 year.
Select one:
Analysis of the behavior of an economy as a whole.
Select one:
Y = A * f(K, L ) is the formula used to measure _____.
Select one:
In comparing growth of countries as to levels of output or income across countries we run into the problem of differences in currencies
Select one:
 
Recurrent, systematic fluctuations in the level of business activity, often characterized by changes in growth rate of real GDP.
Select one:
The __________ is a graphic representation of the market supply schedule and the Law of Supply
Select one:
In exchange rates,_____ means that they fluctuate day to day according to the market.
Select one:
A recession that is major both in scale and duration.
Select one:
In exchange rates,_____ means that they stay at the same value as set by the government.
Select one:

Question text

A shift of the demand curve in response to a change in one of the variables assumed to be held constant under the ceteris paribus assumption (e.g., income), holding the good's price constant.
Select one:
_____- Aggregate Output (or National Income), Y = Aggregate Demand, AD
Select one:
A period of decline in total output, income, employment, and trade, usually lasting from six months to a year.
Select one:

Question text

Percent Change in (Q/L) = (Percent Change in Q) - (Percent Change in P).
Select one:
 

Question text

Recession is
Select one:

Question text

___________ relates to the effect that a small or unit change one variable has on another variable.
Select one:

Question text

__________ is also referred to as a direct relationship. As the value of X increases, the value of Y increases.
Select one:

Question text

Consumer Price Index (CPI) includes
Select one:

Question text

_________ is a very small increase of decrease in the quantity of some variable.
Select one:

Question text

Percent Change in (P x Q) = (Percent Change in P) + (Percent Change in Q)
Select one:
 

Question text

Macroeconomics is analysis of the behavior of an economy as a nation.
Select one:
 

Question text

A line showing X and Y pair is referred as ____________.
Select one:

Question text

The test of a proposition or theory using actual observations or numbers is
Select one:

Question text

In Demand Curve Shifts, a change in any of these will cause the demand to curve shift to the right or left, when the demand curve is shifting to the right. The rightward shift is called ___________________.
Select one:

Question text

__________ is an advantage of a person who can produce a good or service with fewer resources than another person.
Select one:

Question text

___________is the amount that the quantity demanded exceeds the quantity supplied when the market price is below the equilibrium price.
Select one:

Question text

Indivisibility is when some goods can be broken into small tradable quantities.

Select one:
 

Question text

___________, as more scarce resources are used to increase production of one good or service, production of another good or service falls by larger and larger amount.
Select one:

Question text

__________is the amount that the quantity supplied exceeds the quantity demanded when the market price is above the equilibrium price.
Select one:

Question text

Money is a common medium of exchange and represents the general purchasing power.
Select one:
 

Question text

In general, countries that have a larger investments in capital goods are wealthier and have economic growth rate.
Select one:
 

Question text

____________ is when we specialize and both benefit after the exchange
Select one:

Question text

A country should specialize in a good in which it has comparative advantage.
Select one:
 

Question text

__________as the shift of the supply curve in response to a change in one of the variables assumed to be held constant under the ceteris paribus assumption (e.g., technology), holding the good's price constant.
Select one:

Question text

The slope of a curve can be determined from a graph by dividing the vertical change in the Y variable or rise by the horizontal change in the X variable or run.
Select one:
 

Question text

A market is in ______________ when the quantity demand is equal to quantity supplied at the market price.
Select one:

Question text

Economic growth is
Select one:

Question text

Law of Demand Ceterus Paribus
Select one:

Question text

____________ is when we specialize and both benefit after the exchange
Select one:

Question text

Ceteris paribus, means
Select one:

Question text

It is comparative advantage or opportunity cost and not absolute advantage that yields an incentive for specialization and trade.
Select one:
 

Question text

Independent variable can be seen in the _______________ of the equation.
Select one:

Question text

What is the value of total output (nominal GDP) corrected for any changes in prices.
Select one:

Question text

Quantity of goods and services that can be purchased with a given amount of money.
Select one:

Question text

__________is the amount that the quantity supplied exceeds the quantity demanded when the market price is above the equilibrium price.
Select one:

Question text

__________ is an advantage of a person who can produce a good or service with fewer resources than another person.
Select one:

Question text

__________is the price at which the quantity demanded is equal to the quantity supplied. Other things being unchanged, there is no tendency for this price to change.
Select one:

Question text

The test of a proposition or theory using actual observations or numbers is called _______.
Select one:

Question text

____________ a graph that indicates all possible combinations of two goods or services that can be produced within an economy given the full and efficient use of all available resources.
Select one:

Question text

Understanding measures of Elasticity is critically important in Microeconomics, references to Elasticities are infrequent in Macroeconomics
Select one:
 

Question text

__________ a variable that depends on the value of the independent variable(s) can be seen in the left side of the equation.
Select one:

Question text

__________ is also referred to as a direct relationship. As the value of X increases, the value of Y increases.
Select one:

Question text

______________ is a movement along a fixed supply curve in response to a change in the price of that good, ceteris paribus (everything else unchanged).
Select one:

Question text

___________ is a legal requirement that maintains the market price below the equilibrium price.
Select one:

Question text

In general, countries that have a larger investments in capital goods are wealthier and have economic growth rate.
Select one:
 

Question text

Political Science is the study of mankind in the ordinary business of life.
Select one:
 

Question text

The point where the curve crosses the vertical axis is referred as ____________.
Select one:

Question text

In Demand Curve Shifts, a change in any of these will cause the demand to curve shift to the right or left, when the demand curve is shifting to the right. The rightward shift is called ___________________.
Select one:

Question text

Percentage of Change = ending value- starting value /starting value x 100.
Select one:
 

Question text

___________ as the price of a good or service increases the quantity you would be willing and able

to produce during some period of time increases.

.

Select one:

Question text

A country should specialize in a good in which it has comparative advantage.
Select one:
 

Question text

According to __________, that if more of the time is spent in one activity then you must invest your resources to develop specialized tools or machines to aid me in my task.
Select one:

Question text

Net Domestic Product (NDP) = C + In + G + NX = GDP - depreciation
Select one:
 

Question text

______ Latin term that used in economics means all other non-price factors that affect the amount we consume or produce do not change.
Select one:

Question text

____________________ is measured by the money (dollar) value of all final goods and services produced byan economy during a given period of time, usually a year.
Select one:

Question text

____________________the amount by which the value of a firm's finished products exceeds the value of goods and services the firm purchases
Select one:

Question text

Price Index = current-year total cost of market basket of goods and services / base-year total cost of market basket of goods and services
Select one:
 

Question text

__________ is described as a fixed-weight price index (also referred to as a Laspeyres price index), which measures the cost of a fixed basket of goods relative to a base period
Select one:

Question text

The market value of final goods and services (i.e., sold to final consumers) produced by a nation during a specific period, usually 1 year.
Select one:

Question text

Microeconomic demand and supply curves depend on differences in ________ prices
Select one:

Question text

__________________ - the market value of final goods and services (i.e., sold to final consumers) produced by a nation during a specific period, usually 1 year.
Select one:

Question text

_____________________- the market value of final goods and services produced by labor and property supplied by the residents of a nation during a specific period, usually 1 year.
Select one:

Question text

When the amount that the quantity demanded exceeds the quantity supplied when the market price is below the equilibrium price.
Select one:

Question text

When many suppliers and many consumers (competitive) engaged in trade without interference from government (free).
Select one:

Question text

Percentage decline in the average level of prices.
Select one:

Question text

When the price of resources in the production process increases, firms try to pass on these increases to the product price this is called ________.
Select one:

Question text

________ represent a cost to not only individuals but also the macroeconomy or reduce overall economic efficiency in that they represent an unnecessary cost of transforming resources into final goods and services.
Select one:

Question text

GDP Deflator = Nominal (current-dollar) GDP /Real (constant-dollar) GDP * 100
Select one:
 

Question text

Deflation Rate = Price Index Year 2 - Price Index Year 1 /Price Index Year 1 * 100
Select one:
 

Question text

__________is the measure of the average level of prices for some specified bundle of goods and services, relative to the prices in a specified base year
Select one:

Question text

We can represent a single person's decision about how many items to purchase over a year in a table called a _______.
Select one:

Question text

A period of decline in total output, income, employment, and trade, usually lasting from six months to a year.
Select one:

Question text

___________ is a term used to denote a very high rate of inflation.
Select one:

Question text

A _______is a collection of suppliers and consumers engaged in trade.
Select one:

Question text

An increase in income leads to an increase in demand (the demand curve shifts to the right).
Select one:

Question text

When the amount that the quantity supplied exceeds the quantity demanded when the market price is above the equilibrium price
Select one:

Question text

Analysis of the behavior of individual decision-making units (individuals, households, firms).
Select one:

Question text

Nominal interest rate - expected rate of price inflation.
Select one:

Question text

A market is in _______ when the quantity demanded is equal to quantity supplied at the market price.
Select one:

Question text

The GDP Deflator is described as a variable-weight price index (also referred to as a Paasche price index)
Select one:
 

Question text

__________- percentage rate of increase in the price index per period.
Select one:

Question text

Things that are available in sufficient amounts to satisfy all possible needs. There is no opportunity cost involved in their use or consumption.
Select one:

Question text

Tangible things that satisfy people's wants and desires.
Select one:

Question text

When the average level of prices increases over time the economy is said to be experiencing _______________.
Select one:

Question text

A shift of the demand curve in response to a change in one of the variables assumed to be held constant under the ceteris paribus assumption (e.g., income), holding the good's price constant.
Select one:

Question text

Intangible but useful activities that are valued by people.
Select one:

Question text

What approach that measures total economic activity by adding the amount spent by allultimate or final consumers of products and service?
Select one:

Question text

______________ - average output per hour of labor (e.g., total real GDP divided by the total number of labor-hours worked)
Select one:

Question text

____________consists of transactions that are not documented for various reasons.
Select one:

Question text

What kind of resources in which examples are petroleum, natural gas, coal, and nonfuelminerals extracted from the ground is included in GDP in the products produced from them
Select one:

Question text

Transfer Payment - a payment made for which no goods or services are provided in return. Transfer payments are excluded from _______.
Select one:

Question text

Net Investment (In) = Gross Investment (Ig) - Depreciation
Select one:
 

Question text

Real GDP - value of total output corrected for any changes in prices. Also referred to as "constant-dollar" GDP. Real GDP is reported quarterly by the Bureau of Economic Analysis
Select one:
 

Question text

An increase in income leads to a decrease in demand (the demand curve shifts to the left).
Select one:

Question text

Percentage increase in the average level of prices.
Select one:

Question text

A _______ is the opposite situation of a price ceiling.
Select one:

Question text

Goods and services those are scarce. There is an opportunity cost involved in their use or consumption.
Select one:

Question text

A recession that is major both in scale and duration.
Select one:

Question text

When the government increases money supply faster than the economy is growing you generally end up with deflation.
Select one:
 

Question text

Gross National Product (GNP) = C + Ig + G + NX
Select one:
 

Question text

Recurrent, systematic fluctuations in the level of business activity, often characterized by changes in growth rate of real GDP.
Select one:

Question text

The _______ is a graphic representation of the market demand schedule and the Law of Demand
Select one: