1. What happen to equity portfolio in 1997?

a. positive

b. negative

c. equilibrium

d. break even

2. What particular imposition becomes a standard when situation that there is too much money in circulation?

a. fix and establish hedge facilities

b. income interest rate

c. popularize equity market

d. all of the items mentioned

3. East Asian countries have been marked as this because the development of their economy was unexpectedly strong despite the problems in society such as poverty and economic inequality. There is dramatic economic development because of the credibility of leaders during the post war and good economic policies that was established, the real per capita Gross.

a. Microeconomic

b. Macroeconomic

c. Asian Tiger

d. Economic Miracle

4. In most cases, the satisfaction people get from consuming a certain good or service decreases as its supply increases. At some point, the marginal utility of consuming an additional unit may even become negative. (i.e. completely unfavorable)

a. Diminishing Marginal Utility

b. Opportunity Cost

c. Decreasing Return

d. Additional Cost

5. Central Banks or currency boards can influence a country's economy by adjusting the supply of money by buying or selling government bonds or by modifying the interest rate. An expansionary monetary policy will boost economic activity and growth, whereas a contractionary policy will reduce it.

a. physical policy

b. monetary policy

c. expansionary policy

d. growth policy

6. Whenever a bank loans money to someone, it will expect to receive interest in return. This way it can be compensated, for its opportunity costs and the risk of not getting the money back. While ____________ is define on how much people (or institutions) have to pay to get a loan. Hence, they have a significant impact on all monetary transactions.

a. monetary policy

b. demand compression

c. interest rate

7. In explaining the concept of production possibilities, one of the assumption is that there is full use of resources, knowledge and technology. This assumption reflects the true situation of a country.

a. the first and the second statement are both true.

b. the first statement is true. The second statement is false.

c. the first and the second statement are both false.

d. the first statement is false. The second statement is true.

e. the assumption does not reflect the true situation of a country.

8. If banking practices long term credit are based on stable foreign exchange, unsound lending practice, doesn't want competition, then

a. depositors are protected

b. banking system is weak

c. banking system have conservative operation

d. banking system is relatively bound to fail

9. The Lewis-Fe-Ranis model states that there is low accumulation of capital and, low productivity and low earnings in the rural areas. For this reason, people from the rural areas move to urban areas (cities)to take advantage of higher earnings offered by the urban areas.

a. the first and the second statement are both true.

b. the first statement is true. The second statement is false.

c. the first and the second statement are both false.

d. the first statement is false. The second statement is true.

e. both the first & second statement are partly true

10. The best indicator of a country's economic progress is reflected in the

a. standard of living

b. educated citizen

c. peaceful environment

d. all of the items mentioned

11. As regards the modernization of agriculture, some policy can be considered by the government. Genetic engineering is among them. Genetic engineering refers to:

a. The use of synthetic or processed fertilizers.

b. Modification of the characteristics of plans to make it resistant to insects and herbs.

c. The use of conventional fertilizers.

d. all of the above.

12. In explaining the concept of production possibilities, one of the assumptions is that quantity and quality of resources remain constant. This means that

a. no workers are unemployed

b. no factory is idle

c. resources are fully used

d. workers don't undergo new training programs to make them productive, and there are no new natural resources that are discovered

e. some workers are employed while others are not

13. A situation in the economy where a shock in a particular economy or region spreads out and affects the other economies by way of price movements

a. financial integration

b. globalization

c. contagion effect

d. bubble economy effect

e. overvalued exchange rate

14. The national savings rate is 0.14 and the depreciation rate is 0.04. What is the steady state of equilibrium for output (y)?

a. 3.50

b. 3.00

c. 12.25

d. 12.70

e. 3.25

15. What is the steady state of equilibrium for capital-labor-ration(k) if the national savings is 0.14 and the depreciation rate is 0.04?

a. 12.40

b. 12.25

c. 3.50

d. 3.25

e. 12.30