(15)What's the monetary value of GDP calculated by the income approach by the data in Table#1 above? (a)$620b (b)$580b (c)$265b (d)None of the above (16)As shown in Table#1, the GDP will___________________ because net export is________________________: (a)Decrease, positive (b)Increase, negative (c)More information needed (d)None of the above (17)Suppose you are told that business investment expenditures in the economy represented in Table#1 are equal to $280 billion and that net inventory expenditures are equal 20% of aggregate investment expenditures, what are residential investment expenditures in the economy? (a)$265 billion (b)$282 billion (c)$780 billion (d)None of the above (18)Which of the following statements is false? The GDP of a country includes only____________ (a)Intermediate and legitimate goods and services (b)Final and illegitimate goods and services (c)Intermediate inputs (d)All of the above (19)Which of the following is aggregate government expenditures or G in Table#1 above? (a)$695b (b)$870b (c)$915b (d)None of the above (20)Given the data in Table#1 above, what is the monetary value of the economy's net investment expenditures? (a)$875b (b)$1,105b (c)$1,245b (d)None of the above (21)Which of the following is an example of financial investment spending in an economy? (a)The buying and selling of government bonds (b)The sale of certificates of deposits (c)The purchase of stocks by millionaires in auto companies (d)All of the above (22)Suppose the aggregate income taxes on household incomes in an economy are equal to $665 billion and the personal disposable incomes of the same households are equal to $772 billion, what would be the aggregate pre-tax incomes of the households in the economy? (a)$1,825billion (b)$1,625billion (c)$2,375 billion (d)None of the above Table#2-Macroeconomic Data Year GDP in Current dollars (billions) Implicit price deflator GDP in real or 1982 dollars (billions) Population (millions) GDP per capita 1982 dollars 1970 1,215.5 44.0 3,417.8 205.1 11,788 1971 46.4 2,483.6 207.7 1972 1,312.6 4,608.2 209.9 12,426 1973 1,359.3 2,746.1 12,959 1974 1,472.8 54.0 213.9 1975 59.3 5,695.4 216.0 1976 1,882.8 2,825.3 12,960 1977 1,990.5 67.3 220.2 1978 75.2 3,115.9 12,998 1979 78.8 3,183.0 225.1 1980 2,732.0 3,151.1 13,839 (23)Which of the following is the GDP in current dollars in 1974 in Table#2 above? (a)$31,265.7b (b)$2,343.2b (c)$4,826.8b (d)None of the above (24)If an economy's population grows at 5 percent and real GDP grows at 2 percent on average during 1985-1995: (a)Per capita real GDP is increasing (b)Per capita real GDP is constant (c)Per capita real GDP is decreasing (d)The economy's standard of living is rising (25)Which of the following statements is true? The development strategy known as ISI is: (a)A pro-free trade industrial policy (b)A free market industrial policy (c)An anti-growth strategy (d)None of the above (26)Suppose the real GDP of the economy of Macklandia is given to you as being equal to $450 billion in 1998 and it's given to you as $385 billion in 2005, what is the growth rate of real GDP per capita during the years 1998-2005 for Macklandia: (a)5.3 percent (b)2.9 percent (c)6.2 percent (d)More information needed (27)Would you be able to calculate Macklandia's GDP growth rate with the information given in Q#26 above? (a)No (b)Yes (c)More information needed (d)All of the above (28)What is the GDP growth rate of Macklandia during the period 1998-2005? (a)6.4 percent (b)8.3 percent (c)3.6 percent (d)None of the above (29)Which of the following statements is false? The theory of comparative advantage is: (a)A 17th century international trade theory (b)A trade theory based on specialization of production due to relative cost advantage (c)A trade theory that was developed by the English political economist David Ricardo (d)None of the above (30)Which of the following statements is false? A tariff has the effect of granting _______________________________a larger share of the domestic market. (a)Domestic consumers (b)Foreign producers (c)Foreign consumers (d)All of the above (31)Which of the following statements is true? A shift to the left in the PPF curve of a country's economy means that there is: (a)A contraction in the economy (b)The possibility that development is unfolding in the economy (c)The evolution of the backward-forward linkages may be occurring in the economy (d)All of the above (32)Development is feasible in the absence of growth in a society is: (a)A false statement because growth is a sufficient condition for development (b)A true statement because growth is a necessary and sufficient condition for development (c)A true statement because growth is a necessary though not a sufficient condition for development (d)None of the above (33)Which of the following statements is true? Economic development in any society encompasses: (a)Distribution of income (b)Legal system (c)Education (d)All of the above (34)Suppose the rate of GDP growth expressed in constant dollars is 8.4 percent annually and the rate of population growth is 5.2 percent annually during the period 1990-2005, then the rate of constant GDP per capita growth during the cited period is: (a)1.2 percent (b)3.2 percent (c)2.2 percent (d)More information needed (35)According to the Rule of 70, the rate of real GDP growth for the economy referenced inQ#34 will take ____________________to double. (a)6.3 years (b)8.3 years (c)More information needed (d)None of the above (36)Which of the following statements is true? A pair of protectionist policy is: (a)Tariffs and customs delays (b)Exchange controls and quotas (c)(a) and (b) above (d)All of the above (37)Which of the following pairs of countries is classified as gang of four nations? (a)Cuba and Jamaica (b)South Korea and Hong Kong (c)Peru and Colombia (d)China and Taiwan (38)Which of the following statements is true? Payments to households not in exchange for goods and services currently produced are: (a)Disposable incomes (b)Social Security Taxes (c)Net interest payments (d)None of the above (39)Which of the following statements is false? Quotas are known as a: (a)An anti-free trade growth and development policy (b)Quantitative restriction on imports of a good (c)A non-tariff barrier (d)None of the above (40)Which of the following pairs of political economists are classical economists? (a)David Ricardo and Joseph Stiglitz (b)Norman Girvan and Paul Krugman (c)Dean Baker and Robert Malthus (d)None of the above (41)Which of the following pairs is an intellectual property rights? (a)Trade secrets and copyrights (b)Copyrights and free trade (c)Patents and innovations (d)All of the above (42)Which of the following statements is true? Another name for the import substitution industrialization strategy is: (a)Export-led industrialization strategy (b)An inward-looking growth strategy (c)An innovation strategy (d)None of the above (43)Which of the following political economists is a pioneer theorist in developing the neo-classical growth theory? (a)George Beckford (b)Adam Smith (c)Samir Amin (d)None of the above (44)Suppose the GDP Deflator in a country in 1985 is 385 and the GDP Deflator for 1990 was 420, the rate of inflation was: (a)4.8 percent (b)9.1 percent (c)4.3 percent (d)6.7 percent (45)Which of the following statements is true? The rate of inflation calculated in Q#44 above measures: (a)Inflation in the whole economy of a country (b)Inflation in producers' prices (c)Inflation in wholesale prices (d)None of the above (46)Which of the following pairs is a type of inflation and a consequence of inflation in an economy? (a)Hyperinflation and the CPI (b)Galloping inflation and Menu costs (c)Erosion of the value of money and speculation (d)None of the above (47)If the rate of inflation is equal to 25 percent and the nominal rate of interest is equal to 10 percent, it would be plausible to assert that: (a)The real interest rate is less than zero (b)Creditors lose (c)Savers lose (d)All of the above (48)If the rate of inflation in a given time period turns out to be lower than lenders and borrowers anticipated, then the effect will be: (a)A redistribution of wealth from lenders to borrowers (b)A redistribution of wealth from borrowers to lenders (c)A net loss in the purchasing power for lenders relative to borrowers (d)A redistribution of wealth from savers to investors (49)Suppose your nominal income in 2008 was 10 percent higher than the previous year. If the rate of inflation for 2008 was 12 percent,

then your real income was: (a)Increased by 7 percent (b)Decreased by- 3 percent (c)Increased by 3 percent (d)None of the above