Please choose correct answers no explanation and working required.

question 1

What is disposableincome?

a.

Personal income plus remittances

b.

Personal income plus government transfers

c.

Personal income minus taxes

d.

Personal income minus savings

question 2

Patty and Fred used cost of living adjustments (COLAs) to ensure that the value of a loan Patty gave to Fred would not lose its purchasing power.

a.

Deflation

b.

Stagflation

c.

Anticipated inflation

d.

Unanticipated inflation

Question3

Which of the following is most likely to occur during a time of recession

a.

An increase in the price level

b.

A decrease in the interest rate

c.

A decrease in real output

d.

A decrease in the unemployment rate

question 4

Which of the following is true

a.

One consequence of the Keynesian model is that markets function without government intervention

b.

Keynesian economists believe that wages and prices are flexible

c.

Keynesian economists believe that markets could be in persistent disequilibria

d.

Classical economists believe that wages and prices are sticky

Question5

What happens to the labour market if a minimum wage is set above the equilibrium wage?

a.

There is excess demand for workers

b.

Unemployment is created

c.

There is a shortage of workers

d.

Nothing

Question6

Which of the following is a limitation of national income accounting

a.

It does not measure illegal activities

b.

It excludes do it yourself production

c.

It does not measure welfare properly

d.

All of the other responses

question 7

Which of the following would be considered macro-economic variables

a.

The price of beverages produced by Banks DIH and DDL

b.

The total number or workers employed by Courts

c.

Exchange rate and general prices

d.

The output and prices of beds produced by Melsha's Furniture Store

Question8

Stagflation occurs when the economy experiences

a.

rising prices and rising output.

b.

rising prices and falling output.

c.

falling prices and rising output.

d.

falling prices and falling output.

Question9

When workers lack the skills necessary to get a job, they are ________________ unemployed.

a.

Structurally

b.

Seasonally

c.

Cyclically

d.

Frictionally

question 10

During a recession, real GDP _______________ and unemployment ________________.

a.

Decreases, Increases

b.

Increases, Increases

c.

Increases, Decreases

d.

Decreases, Decreases

Question11

Gross private investment (I) as a component of AD = C + I+ G+ (X-M) refers to

a.

Spending by firms on wages and salaries

b.

Demand by firms for factories, machinery, capital goods etc.

c.

Inventory maintained by firms

d.

Household investment

Question12

After looking for a job of over 3 months. Josh stopped looking because he is convinced that he will not find a suitable job. Josh would be classified as

a.

Unemployed

b.

Discouraged worker

c.

Child labour

d.

Underemployed

question 13

Which of the following best describes full employment?

a.

The level of unemployment that occurs when there are no job vacancies.

b.

A situation in which there is no unemployment.

c.

A situation in which the level of unemployment is less than 3 percent.

d.

The level of employment that occurs when the unemployment rate is equal to the natural rate of unemployment.

Question14

Answer the question based on the table below

Adult working population

Labour

force

Not in the labour force

Number

Employed

Number

Unemployed

Unemployment

rate

Labour Force Participation rate

118,479

66,210

43,864

65,510

3800

5.7

56

What is the unemployment rate?

a.

5.7

b.

9.6

c.

7.6

d.

6.3

Question15

Which of the following statement is correct

a.

Peak is the phase where recession is at its lowest level

b.

A recession is a period of decline in an economy's total output usually lasting at least six months

c.

Recessions last at least 3 months

d.

Trough is the point where economic activity is at a temporary maximum.

question 16

mike is 13 years old but is actively seeking employment to assist his single parent mother.

a.

Discouraged worker

b.

Child labour

c.

Underemployed

d.

Unemployed

Question17

Which of the following isnota social cost of unemployment

a.

increasing purchasing power

b.

social and economic deprivation

c.

rising crime

d.

worsening social dislocation

Question18

A medical doctor working as a laborer on a construction site.

a.

Job loser

b.

Unemployed

c.

Underemployed

d.

Child labour

question 19

Between year 1 and year 5, Bart's general price levels for all goods decreased consistently.

a.

Anticipated inflation

b.

Deflation

c.

Unanticipated inflation

d.

Stagflation

Question20

Which of the following is true regarding the LRAS curve

a.

It is affected by expectations

b.

It is positively sloped

c.

This level of production is also referred to as potential output or full-employment output

d.

It is horizontal at the natural rate of output