What is answer/statement matches the best

1. Being sure that an economic variable measures exactly what we want it to measure is referred to as

Statistical reliability

Statistical validity

Statistical inference

Statistical description

1. The "economic problem" could best be described as

How households can maximize their benefit while firms maximize profit at the same time

How governments and central banks must implements ideal policies without making economic growth rates fall

How societies must allocate scarce resources among alternative uses and wants

How societies must allocate scarce resources in such a way as to achieve a fair distribution of income and consumption

1. Which of the following topics would least likely be covered in a course in macroeconomics?

The monetary policy choices of the Central Bank of Bahrain

The profit maximizing pricing strategy of ABC Corporation

The fiscal policy stimulus package options available to country policy makers to deal with weakness in the world economy

The level and causes of unemployment in the Czech Republic

1. If the change in GDP in South Korea from 2016 Quarter 3 to 2016 Quarter 4 was 1.6%, then we may conclude that the s.a.a.r for GDP in the same period was

1.6%, because s.a.a.r. measures quarter-to-quarter growth

3.2%, because s.a.a.r. measures the upper limit of current GDP growth

One-fourth of 1.6%, or 0.4%, because s.a.a.r. removes all annualized data

Four times 1.6%, or 6.4%, because s.a.a.r. annualizes quarterly data

1. The difference between an economic indicator being a flow variable rather than a stock variable is that

A flow refers to measuring a variable over time, while a stock measures a variable at a point in time

A flow refers to measuring a variable at a point in time while a stock measures a variable in non-monetary units

A flow refers to measuring a variable over time while a stock measures a variable in monetary units only

A stock is a measure of a variable over time while a flow measures a variable at a point in time

1. The level of potential GDP used as the benchmark comparison in assessing the long-run prospects of an economy is computed as:

The growth in labor force plus the growth in productivity plus the growth in hours worked

The growth in productivity plus the growth rate of the population

The growth rate of population plus the growth rate of current production

The growth rate of current production plus the growth rate of productivity plus the growth rate in hours worked

1. Short run fluctuations in developed economies are most successfully understood by investigating

The movement of the factors of production

The movement of aggregate expenditures, especially durables and investment

The level of technology and the labor market decisions of households

The current status of monetary policy and fiscal policy and their effect on corporate investment and household labor decisions

1. The three major components of personal consumption expenditures are

Durables, non-durables, and residential spending

Non-Durables, household construction, and services

Services, non-durables, and durables

Services, non-durables, and residential spending

1. The three major components of gross private domestic investment are

Construction, changes in inventories, and home building

Non-Residential construction, residential construction, and changes in corporate capital

Inventory accumulation, residential construction, and corporate construction

Residential construction, non-residential construction, and changes in inventories

1. In the drawing of the consumption function, the MPC can best be thought of as

The intercept of the graph

The slope of the graph

The total amount of consumption at any given level of GDP

The amount of autonomous consumption at any level of GDP

1. Which of the following statements would be an example of an "indirect signal"?

The current size of real GDP in Bahrain is roughly BD13 billion

The change in real GDP in Bahrain was negative for both the fourth quarter of 2015 and the first quarter of 2016

Employment has risen in the US since the end of the Great Recession

The rise in employment in the US in October 2017 means that GDP in the US will likely rise in the fourth quarter 2017

1. In the economic way of thinking we generally assume that

Incentives matter, but only fairness can be the true measure of success

People act out of self-interest and respond to incentives

People act the same way in both the short run and the long run

People act not out of self-interest but rather out of efficiency

1. Assume that the observed MPC in a country falls and at the same time the level of autonomous spending falls. We may conclude from these observations that

The level of equilibrium RGDP will rise

The change in equilibrium RGDP is indeterminate because the two effects are offsetting and the proportions of changes are unknown

The level of equilibrium RGDP will fall

The level of equilibrium RGP will remain unchanged as the two changes must be by definition proportionately offsetting

1. If we find that the MPS = 0.3, then we may conclude that

The MPC must be 0.7

The MPC must be less than 0.3, but greater than zero

The MPC must be 0.3, since both saving and spending occur at the same time

The MPC must be negative since MPC + MPS always equals zero

1. Assume that the country of Atlantis has a trade deficit, so NX is negative. Which of the following events in one period would make the trade deficit even larger?

A rise in exports that is greater than the rise in imports

A rise in imports that is greater than the rise in exports

A rise in exports and a fall in imports

A rise in exports that exactly equals the rise in government spending

1. The dollar level of government spending in total is not necessarily equal to the dollar level of government as a component of GDP. This is so because

Government itself does not produce anything, so it cannot be included in a variable that measures production

Government spending is offset by taxes and borrowing, so only positive net spending can be included in the computation of GDP, not total spending

Government spending is offset by positive levels of taxes and negative levels of transfer payments, assuring that government will be a smaller portion of GDP than its actual spending

Government spending in total includes a substantial amount of transfer payments, which cannot included in the computation of GDP as they are unrelated to current production

1. Assume that we find the actual level of output, Y, is greater than the planned level of spending (E_p) at that level of Y.We may conclude that:

The level of unplanned investment will be zero

The level of unplanned investment will be negative

The level of unplanned investment will be positive

The level of both planned and unplanned investment will rise in response the gap between Y and planned spending

1. Which of the following would be the best description of what is measured by GDP?

GDP measures the total final retail sales of all firms in a given country

GDP measures the level of current production done within the borders of a country

GDP measures the level of production done by domestic companies both domestically and overseas

GDP measures current expenditures done by the private, domestic sector plus output produced for export

1. If we find that nominal (current dollar) GDP fell last quarter, then we can conclude which of the following is true:

If inflation was positive then real GDP must, in all cases, have risen

If we had falling prices, or deflation, it will always exactly offset the fall in nominal, resulting in zero growth for real GDP in all cases

If inflation was positive then real GDP must have fallen as well

If inflation was zero, then real GDP growth rate will also be zero