1.________________ is one of the Macroeconomics objectives from the Islamic perspective.

Select one:

a.Al-Wadiah

b.Al-Bai Bithaman Ajil

c.Al-Ijarah

d.Universal education

2.What is the benefit to maintaining price stability within a country?

Select one:

a.Optimize the available resources efficiently

b.Consumers and businesses can safely pursue long-term consumption and production plans.

c.Expansion in national output over a given period of time

d.Decision making for the economy as a whole

3.The crucial consequences of unemployment to the economy are wastage of available resources and ________________.

Select one:

a.aggregate price level

b.social problems

c.motivation

d.income

4.Business cycle is a situation where ________________.

Select one:

a.expansion in national output over a given period of time

b.sustained increase in the general price level

c.the economic growth of a nation is shared equally among the population

d.an economy will not always encounter an upward trend over time as economies tend to experience short-term ups and downs in their performance

5.________________ is one of the component of Macroeconomics.

Select one:

a.Flow of factors of production

b.Goverment

c.Flow of goods and services

d.Flows of money

Clear my choice

6.Circular flow of income in a three-sector economy involves firm, household and ________________.

Select one:

a.consumer

b.foreign sector

c.financial institution

d.government

7.In a two-sector economy, firms are paying ________________ to households and households are paying the firms for consuming the goods and services.

Select one:

a.incentive

b.bonus

c.income

d.tax

8.Market price refers to the current price in the market through the forces of ________________.

Select one:

a.export and import

b.inflation and deflation

c.demand and supply

d.economic growth and recession

9.Circular flow of income can be defined as ________________.

Select one:

a.an economic model depicting how money flows through the economy

b.actual price earned by producers or sellers

c.price of output that is valued based on the cost of factors of production

price of output that is valued based on the cost of factors of production

d.current price in the market through the forces of demand and supply

10.What is most likely to increase as a result of a rise in interest rates in a country?

Select one:

a.The level of private investment.

b.The inflow of short-term foreign capital.

c.The level of house prices.

d.The return on capital investment.

11.The market value of final goods and services produced within a country during a period of time is called ______________.

Select one:

a.Gross domestic product.

b.General domestic productivity.

c.Guaranteed direct prices.

d.Government documented production.

12.Gross National Product (GNP) measures the total amount of income earned by resident regardless of ________________.

Select one:

a.factor cost

b.the citizenship

c.income level

d.where they are

13.If a retail price index changed from 250 to 260 over a period of twelve months, this would indicate that ____.

Select one:

a.the value of money has fallen.

b.the pattern of consumer expenditure has probably changed during the year.

c.wages will need to rise by 4% if incomes are to keep pace with price rises.

d.the standard of living has fallen.

14.Why is it important to learn about and understand the determination of national income equilibrium?

Select one:

a.Households spending on goods and services at different levels of disposable income.

b.Income received by all sectors in the economy which is not distributed within the circular flow.

c.Equilibrium level will affect the level of employment in the economy.

d.Consumption is the main component of aggregate expenditure.

15.What are the two types of consumption according to Keynes?

Select one:

a.Average and marginal consumption

b.Autonomous and induced consumption.

c.Intermediatefixed consumption

d.Maximum and minimum consumption

16.Break-even income is a situation where ________________.

Select one:

a.consumption is equal to national income

b.tax is equal to government spending

c.saving is equal to national income

d.government introduce new policy

17.Which of the following is the accurate definition for consumption?

Select one:

a.An excessive amount of resources are being employed in the economy.

b.Income received by all sectors in the economy which is not distributed within the circular flow

c.Spending by all households in the economy on goods and services produced within the economy.

d.Increase in the production of goods and services in the economy is the result of a high equilibrium level of national income.

18.Which of the following is the formula for Average Propensity to Consume (APC) where,

C = total consumption

Yd= disposable income

Select one:

a.Y/C

b.Yd/C

c.C/Yd

d.C/Y

19.The following are the factors affecting Muslim consumer's behaviorEXCEPT:

Select one:

a.The principle of wealth

b.Autonomous investment

c.The belief in the hereafter life.

d.The Al-Falah principle

Clear my choice

20.________________ is the factor influencing investment.

Select one:

a.Riba

b.Innovation

c.National income equilibrium

d.Debtor

21.Which of the following statement best represent money?

Select one:

a.Government to promote investments.

b.Employees and employers have to contribute a certain percentage of income.

c.Anything that acts as a medium of exchange.

d.Lower rates of interest from financial institutions.

22.M3 is the broadest definition of the supply of money with the _____________liquidity.

Select one:

a.modest

b.fixed

c.highest

d.lowest

23.Which of the following statement accurately represent Fiat Money?

Select one:

a.Legal tender approved by the government to circulate as a mean of payment, such as dollar bills.

b.Any item issued by the central bank and declared by government as money. It consists of paper money and coins.

c.Credit cards or debit cards which are not money.

d.Money deposited in a current account or demand deposits.\

24.Al-Wadiah can be defined as ________________.

Select one:

a.contract on sale and purchase transaction for the financing of assets on deferred and instalment basis at a pre-agreed payment period

b.leasing contract whereby a lessor or owner leases out an asset or equipment to his client at an agreed rental fee for a predetermined lease period

c.contract made between two parties to finance a business venture

d.goods or deposits which have been deposited with another person or bank as custodian for safekeeping

25.The CPI is all of the followingEXCEPT

Select one:

a.cost of living relative to the base year

b.consumer price index

c.average level of prices relative to prices in the base year

d.Rate of inflation between the current period and the base year