Midterm, MBA 510(1), ONLINE, Spring 2022 [Compatibility Mode] - Word Sign in X File Home Insert Design Layout References Mailings Review View Help Tell me what you want to do Share X Cut AaBbCcI AaBbCcDc AaBbC AaBbCci AaB Find Times New R - 12 ~ A A Aa. A - = - OF. 2 21 1 AaBbCc[ AaBbCCD. AaBbCCD Copy Sac Replace Paste Format Painter BI U - abe X2 X' A Z . A . . _. 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle Subtle Em... Emphasis Select Clipboard Font Paragraph Styles Editing Instructions: Answer all questions on the answer sheet provided below MULTIPLE CHOICE questions: (Maximum 30 marks) 1) Which of the following is real capital? a) a pair of stockings. b) a dump truck c) a savings account. d) a share of BEXIMCO stock. 2) A normative statement is concerned with: a facts and theories. b) what it is, as is. c) what ought to be. d) rational choice involving costs and benefits. 3) The scarcity problem: a) persists only because countries have failed to achieve continuous full employment. b) has been solved in all industrialized nations. persists because material wants exceed available productive resources. d) has been eliminated in affluent societies such as in countries of the West. 4) The law of increasing opportunity cost is based upon the fact that: a) the value of money has diminished historically because of persistent inflation. b) wage rates invariably rise as the economy approaches full employment C) consumers tend to value any good more highly when they have little of it. d) resources are not equally efficient in producing various goods. 5) In terms of the circular flow diagram businesses obtain revenue through the -------- market and make expenditures in the -------- market. Page 1 of 4 1292 words E English (United States) + 100% OL O ENG 19:25 INTL 28/02/2022Midterm, MBA 510(1), ONLINE, Spring 2022 [Compatibility Mode] - Word Sign in X File Home Insert Design Layout References Mailings Review View Help Tell me what you want to do Share X Cut Find Times New R ~ 12 ~ A A Aa. |A E - = + + 2 21 1 AaBbCcI AaBbCcDc AaBbC AaBbCci AaB AaBbCc[ AaBbCCD. AaBbCCD. Copy Sac Replace Paste BI U - abe X2 X' A Z . A . . _. 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle Subtle Em... Emphasis Format Painter Select Clipboard Font Paragraph Styles Editing 5) In terms of the circular flow diagram businesses obtain revenue through the -------- market and make expenditures in the -------- market. a) product; financial b) resource; product c) product; resource d) capital; product 6) When gross private domestic investment is positive, net investment: a) is always zero. b) may be either positive or negative. c) must be negative. d) must be positive. 7) GDP in an economy is Tk. 4,600 billion. Consumer expenditures are Tk. 3,500 billion, government purchases are Tk.900 billion, and gross private domestic investment is Tk. 400 billion. Net exports are Taka: a) +400 billion. b) -400 billion. c) +200 billion. d) -200 billion 8) If the consumer price index falls from 120 to 116 in a particular year, the economy has experienced: a) inflation of 4 percent. b) inflation of 3.33 percent. c) deflation of 3.33 percent. d) deflation of 4 percent. page-2 Next two questions are based on the following graph: Page 1 of 4 1292 words E English (United States) + 100% ENG 19:25 9 INTL 28/02/2022Midterm, MBA 510(1), ONLINE, Spring 2022 [Compatibility Mode] - Word Sign in X File Insert Design Layout References Mailings Review View Help Tell me what you want to do Share Home X Cut Find Times New R ~ 12 ~ A A Aa. A - =+ + 2 21 1 AaBbCcI AaBbCcDc AaBbC AaBbcc] Aab AaBbCc[ AaBbCCD. AaBbCCD Sac Replace Copy Paste Format Painter BI U - abe X2 X' A Z . A . . _. 1 Normal 1 No Spac.. Heading 1 Heading 2 Title Subtitle Subtle Em... Emphasis Select Clipboard Font Paragraph Styles Editing page-2 Next two questions are based on the following graph: War goods ("Guns") Civilian goods (" butter") 9 ) At the onset of World War II the United States had large amounts of idle human and property resources. Its economic adjustment from peacetime to wartime can best be described by the movement from point: + 100% Page 2 of 4 1292 words E English (United States) BE ENG 19:25 INTL 28/02/2022Midterm, MBA 510(1), ONLINE, Spring 2022 [Compatibility Mode] - Word Sign in X File Home Insert Design Layout References Mailings Review View Help Tell me what you want to do Share X Cut Find Times New R ~ 12 ~ A A Aa. |A - =+ + 2 21 1 AaBbCcI AaBbCcDc AaBbC AaBbcci AaB AaBbCc[ AaBbCCD, AaBbCCD Copy Sac Replace Paste BI U - abe X2 X' A Z . A . . _. 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle Subtle Em... Emphasis Format Painter Select Clipboard Font Paragraph Styles Editing 9 ) At the onset of World War II the United States had large amounts of idle human and property resources. Its economic adjustment from peacetime to wartime can best be described by the movement from point: a) c to point b. b) b to point c. c) a to point b. d) c to point d. 10) At the onset of World War II the then Soviet Union was already at full employment. Its economic adjustment from peacetime to wartime can best be described by the movement from point: a) c to point b. b) b to point c. c) a to point b. d) c to point d. 11) The safest way for an individual to leave a burning theatre is to run for the nearest exit; it is therefore, also the best means of escape for a large audience. This illustrates: a) the "after this, therefore because of this" fallacy. b) the fallacy of composition. c) Wagner's law. d) the fallacy of limited decisions. 12) The ordinary equation for an open economy's Net Domestic Product is: a) C + Ig-D +G. b) C - Ig + G+X. c) C + In+ G + Xn. d) C + Ig + G + Xn. 13) . Real GDP measures: a) current output at current prices. b) current output at base year prices. c) base year output at current prices. d) none of the above. 14) A business buys Tk. 5,000 worth of resources to produce a product. The business makes 100 units of the product and each of them sells for Tk. 65. The value added by the business to these products is: a) Tk. 5000. b) Tk. 6,500. c) TK. 1,500. d) Tk. 1,000. 15) Adding the market value of all final and intermediate goods and services in an economy in a given year would result in: al an amount less than GDP for that vear. b) an amount greater than GDP for that vear. Page 2 of 4 1292 words E English (United States) + 100% O ENG 19:25 INTL 28/02/2022Midterm, MBA 510(1), ONLINE, Spring 2022 [Compatibility Mode] - Word Sign in X File Home Insert Design Layout References Mailings Review View Help Tell me what you want to do Share X Cut Times New R - 12 ~ A A Aa- A - = + + 2 21 1 Copy AaBbCcI AaBbCcDc AaBbC AaBbcci AaB Find AaBbCcC AaBbCCD. AaBbCCD. Sac Replace Paste Format Painter BI U - abe X2 X' A Z . A . . _. 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle Subtle Em... Emphasis Select Clipboard Font Paragraph Styles Editing 15) Adding the market value of all final and intermediate goods and services in an economy in a given year would result in: a) an amount less than GDP for that year. b) an amount greater than GDP for that year. c) the calculation of GDP for that year. d) the calculation of NDP for that year. page-3 16) From an economist's perspective, which of the following is not considered to be investment? a) construction of a new factory. b) purchase of shares of common stock. c) the building of an apartment complex. d) additions to inventories at steel plants. 17) In a declining economy: a) net private domestic investment is positive. b) net private domestic investment is negative. c) disposable income exceeds personal income. d) nominal GDP exceeds real GDP. Answer the next two questions on the basis of the data provided in the table below: Production Possibilities (alternatives) A B D m Canital an Page 2 of 4 1292 words E English (United States) + 100% ENG 19:25 INTL 28/02/2022Midterm, MBA 510(1), ONLINE, Spring 2022 [Compatibility Mode] - Word Sign in X File Home Insert Design Layout References Mailings Review View Help Tell me what you want to do Share X Cut AaBbCcI AaBbCcDc AaBbC AaBbcci AaB Find Times New R ~ 12 ~ A A Aa. |A E - =+ + 2 21 1 AaBbCc[ AaBbCCD. AaBbCCD. Copy Sac Replace Paste Format Painter B I U - abe X2 X? A - Z - A. 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle Subtle Em... Emphasis Select Clipboard Font Paragraph Styles Editing are wunluing UI all apal ulent complex. uj duuItions to Inventories al steel plants. 17) In a declining economy: a) net private domestic investment is positive. b) net private domestic investment is negative. c) disposable income exceeds personal income. d) nominal GDP exceeds real GDP. Answer the next two questions on the basis of the data provided in the table below: Production Possibilities (alternatives) B On NO Capital goods OUI D 1 w Consumer goods UT 12 14 15 18) If the economy is producing at production alternative C, the opportunity cost of the tenth unit of consumer goods will be: a) 4 units of capital goods. b) 2 units of capital goods. c) 3 units of capital goods. d) 1/3 of a unit of capital goods. 19 ) As compared to production alternative D, the choice of alternative C would: a) tend to generate a more rapid growth rate. b) be unattainable. c) entail unemployment. d) tend to generate a slower growth rate. 20) GDP includes: a) neither intermediate nor final goods. b) both intermediate and final goods. c) intermediate but not final goods. d) final but not intermediate goods. 21) As defined in national income accounting. investment refers to: Page 3 of 4 1292 words E English (United States) + 100% O ENG 19:25 INTL 28/02/2022Midterm, MBA 510(1), ONLINE, Spring 2022 [Compatibility Mode] - Word Sign in X File Home Insert Design Layout References Mailings Review View Help Tell me what you want to do Share X Cut Find Times New R ~ 12 ~ A A Aa. |A E- = + 'OF+ 2 21 1 AaBbCcI AaBbCcDc AaBbC AaBbcci Aab AaBbCc[ AaBbCCD. AaBbCCD. Copy Sac Replace Paste 1 No Spac... Heading 1 Heading 2 Title Subtitle Subtle Em... Emphasis Format Painter BI U - abe X2 X' A Z . A . ._. 1 Normal Select Clipboard Font Paragraph Styles Editing 21) As defined in national income accounting, investment refers to: a) business expenditures on machinery and equipment. b) all new construction. c) changes in business inventories. d) all of the above. 22) Which of the following is a final good or service? a) diesel fuel bought for a delivery truck. b) fertilizer purchased by a farm supplier. c) a haircut. d) Car windows purchased by a Toyota assembly plant. 23 ) The total population of an economy is 175 million, the labor force is 125 million, and the number of unemployed is 8 million. The unemployment rate in this economy is: a) 4.6 percent. b) 5.8 percent. c) 6.4 percent. d) 7.8 percent. 24) Which of the following is expected to be the smallest Taka amount in Bangladesh? a) disposable income. b) gross domestic product. c) personal income. d) national income. 25) A Real Estate Company buys Tk. 100,000 of sand, rock, and cement to produce ready-mix concrete. It sells 10,000 cubic meter of concrete at Tk. 30 per cubic meter. The value-added by the Company is: a) Tk. 300,000. b) Tk. 200,000. b) Tk. 100,000. d) Tk. Zero Page 3 of 4 1292 words E English (United States) + 100% M 0 ENG 19:25 INTL 28/02/2022Midterm, MBA 510(1), ONLINE, Spring 2022 [Compatibility Mode] - Word Sign in X File Home Insert Design Layout References Mailings Review View Help Tell me what you want to do Share X Cut Times New R - 12 ~ A A Aa. A - =- OF+ 2 21 1 AaBbCcI AaBbCcDc AaBbC AaBbcci AaB Find AaBbCc[ AaBbCCD. AaBbCCD. Copy Sac Replace Paste Format Painter BI U - abe X2 X' A Z . A . . _. 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle Subtle Em... Emphasis Select Clipboard Font Paragraph Styles Editing page-4 26) Transfer payments are included in: a) NI. b) PI. c) GDP. d) NDP. 27) Gross investment refers to: a) private investment plus public investment. b) Net investment plus replacement investment. c) net investment after adjustment of inflation. d) net investment plus net exports. 28 ) If real GDP in a particular year is Tk. 80 billion and nominal GDP is TK. 240 billion, the price index for that year is: a) 100. b) 200. c) 240. d) 300. 29) Environmental pollution is accounted for in: a) GDP. b) NDP. C) DI. d) none of the above. 30) Most of the disagreement among economists involves: a) facts. b) theories. c) positive statements. d) normative statements. 31) In drawing a production possibilities curve, we hold constant: a) the money supply. b) the consumer price index. c) both technology and resource supplies. d) resource supplies only. 32) The largest component of total expenditures is: a) net exports. b) government purchases. c) consumption. d) gross investment. Page 4 of 4 1292 words E English (United States) + 100% ENG 19:25 INTL 28/02/2022