The business cycle describes the fact that

Group of answer choices

an economy's level of output fluctuates between times of recession and expansion

politicians usually pass laws that cause the economy to react in unpredictable ways

unemployment levels are constantly changing

inflation rates are constantly changing

Flag question: Question 2Question 21 pts

When the economy experiences an expansion, it is most likely the case that

Group of answer choices

GDP is decreasing, unemployment is decreasing, and inflation is decreasing

GDP is decreasing, unemployment is decreasing, and inflation is increasing

GDP is increasing, unemployment is decreasing, and inflation is increasing

GDP is increasing, unemployment is increasing, and inflation is decreasing

Flag question: Question 3Question 31 pts

It is important to control the strength of expansions because

Group of answer choices

it is important to keep unemployment from getting too high

long run growth is not desirable

it is important to keep inflation from getting too high

it will help prevent recessions from happening

Flag question: Question 4Question 41 pts

Suppose a miner harvests a ton of iron ore, an iron smelter turns the iron ore into steel, and a car manufacturer turns the steel into a car. If the miner adds a value of $1000, the iron smelter sells the steel for $3500, and the car manufacturer sells the car for $9000, how much has been added to GDP?

Group of answer choices

$9,000

$13,500

$8,000

$4,500

Flag question: Question 5Question 51 pts

Which of the following statements about nominal GDP and real GDP is true?

Group of answer choices

Nominal GDP and real GDP are always the same in whichever base year has been chosen for calculation

Nominal GDP is always a larger number than real GDP

Nominal GDP and real GDP may have different levels, but they are always increasing

Nominal GDP is a more useful measurement when comparing levels of GDP over time

Flag question: Question 6Question 61 pts

When the unemployment rate is relatively high

Group of answer choices

the growth in real GDP is low

the growth in real GDP is high

the amount of physical capital available has decreased

inflation is also relatively high

Flag question: Question 7Question 71 pts

Inflation

Group of answer choices

Reduces the purchasing power

Always reduces the standard of living

Reduces the price of products

Always reduces the cost of living

Flag question: Question 8Question 81 pts

An increase in injections into the economy may lead to:

Group of answer choices

An outward shift of aggregate demand and cost-push inflation

An outward shift of aggregate supply and cost-push inflation

An outward shift of aggregate demand and demand-pull inflation

An outward shift of aggregate supply and demand-pull inflation

Flag question: Question 9Question 91 pts

Which of the following items are excluded from GNP measurement?

Group of answer choices

All of these

Purely financial transactions

Illegal activities and the value of leisure

Transfer of used goods and non-market goods and services

Flag question: Question 10Question 101 pts

Which one is included inflow ?

Group of answer choices

Consumption

Income

All of these

Investment

Flag question: Question 11Question 111 pts

The market value of all final goods and services produced in an economy over a year is called

Group of answer choices

National Income

Gross Domestic Product

Gross National Product

Net National Product

Flag question: Question 12Question 121 pts

To include the value of goods or services more than one time while calculating National Income is called

Group of answer choices

Single Counting

None of these

Double Counting

Multiple Counting

Flag question: Question 13Question 131 pts

Which one is included in National Income?

Group of answer choices

None of the Above

Transfer Earnings

Black Money

Sale proceeds of Shares and Bonds

Flag question: Question 14Question 141 pts

Which of the following is the correct term for calculating National Income at constant prices?

Group of answer choices

Real income

None of the above

Domestic income

Current income

Flag question: Question 15Question 151 pts

Which of the following is the actual definition of transfer payments?

Group of answer choices

Transfer payments refer to the payments made to workers on transferring from one job to another

None of the above

Transfer payments refer to the payments made as compensation to the employees within an organisation

Transfer payments refer to the payments made without any exchange of goods and services

Flag question: Question 16Question 161 pts

Which of the following is the correct definition for the Gross Domestic Product (GDP) of a country?

Group of answer choices

The Gross Domestic Product is the total value of tradable goods produced in a country within a given year

None of the these

The Gross Domestic Product is the total monetary value of the economic transactions within a country in a given year

The Gross Domestic Product is the total value of both monetary and non-monetary goods and services in a country within a given year

Flag question: Question 17Question 171 pts

Reason for the circular flow of income is

Group of answer choices

production of goods and services

government intervention

mutual interdependence of producer and household sector

invention of money

Flag question: Question 18Question 181 pts

Which of the following is not an element of final consumption expenditure?

Group of answer choices

Expenditure on raw material

Household expenditure on food

Household expenditure on education

Government final consumption expenditure

Flag question: Question 19Question 191 pts

Which of the following is a phase of the circular flow of income?

Group of answer choices

All of these

Generation Phase

Distribution Phase

Disposition Phase

Flag question: Question 20Question 201 pts

James owns two houses.He lawfully rents one house to the Anson family for $30,000 per year.He lives in the other house.If he were to rent the house in which he lives, it has been estimated that he could earn $24,000 per year in rent.How much do the housing services provided by these two houses contribute to GDP?

Group of answer choices

$24,000

$54,000

$0

$30,000

Flag question: Question 21Question 211 pts

If the quality of a good deteriorates while its price remains the same, then the value of a dollar

Group of answer choices

rises and the cost of living increases

rises and the cost of living decreases

falls and the cost of living decreases

falls and the cost of living increases

Flag question: Question 22Question 221 pts

Consider the following three items of spending by the government:

(1) the federal government pays a $500 unemployment benefit to an unemployed person;

(2) the federal government makes a $2,000 salary payment to a Army Corporal;

(3) the city of Kuching, makes a $10,000 payment to a Lighting Company for street lights in Kuching.

Group of answer choices

only item (2)

only items (2) and (3)

only item (1)

only items (1) and (2)

Flag question: Question 23Question 231 pts

If net exports is a negative number for a particular year, then

Group of answer choices

consumption exceeded the sum of investment and government purchases during the year

the value of firms' inventories declined over the course of the year

the value of foreign goods purchased domestically exceeded the value of goods sold to foreigners during the year

the value of goods sold to foreigners exceeded the value of foreign goods purchased during the year

Flag question: Question 24Question 241 pts

Full unemployment is considered as being equal to the level that combines all of the following except

Group of answer choices

seasonal unemployment

cyclical unemployment

frictional unemployment

structural unemployment

Flag question: Question 25Que

Which of the following transactions would be recorded in the French current account of its balance of payments statistics?

Group of answer choices

A Malaysian bank sells an Indian bond to another Malaysian bank

A Malaysian pharmaceutical firm builds a new factory in Thailand for its subsidiary.

A Malaysian resident buys a Volkswagen car produced in Wolfsburg, Germany

A Malaysian national living in Switzerland buys a house in Switzerland