Question 1

Economic growth accelerated with the industrial revolution because the industrial revolution introduced an additional resource into the production process - capital.

1. True
2. False

Question 2

Recently, there has been a rise in the demand for US Treasury bonds as seen from the interest rate dynamics. This increase in the demand comes from both, domestic and foreign investors. All else held constant, this should have caused the USD to

1. Appreciate
2. Depreciate
3. Remain unchanged

Question 3

Consider that the CPI market basket includes two goods (X and Y), and the spending on X constitutes 70% of the overall consumer spending, while the remainder is allocated to Y.

If the price of Y increases by 10% while the price of X decreases by 10% then, all else held constant,

1. The CPI increases
2. The CPI decreases
3. The CPI remains unchanged

Question 4

If the unemployment rate is 10%, while the number of employed individuals is 900, what is the labor force?

1. 810
2. 900
3. 990
4. 1000

Question 5

When an economy experiences INFLATION, which of the following measures of the GDP grows at a faster rate?

1. Nominal GDP
2. Real GDP
3. None of the above, as both, Nominal and Real GDP measures expand at the same rate.