1. Macroeconomics is a study of _______________.

A the behavior of individual firms

B the entire economy

C government units

D regulations imposed on firms

2. Which o the following is related to macroeconomics?

A An empirical analysis of general price levels and unemployment rates since 1999.

B A study of how hiring more foreign workers affect the construction sector.

C An investigation of petrol price increases and the impact on Malaysians.

D An examination o incomes of IT graduates.

3. Consider three consumer goods: 100 of Good A, 100 of Good B, and 100 of Good C. In the base year, Good A sold at a price of $1, Good B sold at a price of $1, and Good C sold at a price of $1. In the current year, Good A sold at a price of $3, Good B sold at a price of $5, and Good C sold at a price of $10. The Consumer Price Index (CPI) for the current year is:

A 100

B 300

C 500

D 600

4. If the nominal interest rate on a checking account is 2% and the inflation rate is 3% this year, the real interest rate is:

A 5%

B 2%

C 3%

D -1%

5. In the economy of Ukwacc in 2010, consumption was $5000, exports were $100, government purchases were $900, imports were $200, and investment was $1000. What was Ukwacc's GDP in 2010?

A $6700

B $6800

C $7000

D $7200

6. In the economy of Ukwacc in 2010, exports were $200, GDP was $2000, government purchases were $300, imports were $130, and investment was $400. What was Ukwacc's consumption in 2010?

A $970

B $1230

C $1370

D $1630

7. If the reserve ratio is 5 percent, then the money multiplier is

A 20

B 25

C 2.5

D 5

8. Which of the following is not a component of the Gross Domestic Product?

A Consumption

B Net trade

C Interest

D Government spending

9. A bank's reserve ratio is 5 percent, and the bank has $1,000 in deposits. Its reserves amount to

A $5.

B $50.

C $90

D $95.

10. In the economy of Ukraine in 2010, exports were $200, GDP was $2000, government purchases were $300, imports were $130, and investment was $400. What was Ukraine's consumption in 2010?

A $970

B $1230

C $1370

D $1630