Question 1

Actual output cannot grow faster than potential output over the longer term.

Accepted Answer

A) True 
 B)False

Question 2

Savings, taxation and exports are all withdrawals from the circular flow of income.

Accepted Answer

A) True 
 B)False

Question 3

When the economy is at the peak of the business cycle, we would expect the balance of trade to be in surplus.

Accepted Answer

A) True 
 B)False

Question 4

If labour markets were perfectly efficient, the unemployment rate would fall to zero.

Accepted Answer

A) True 
 B)False

Question 5

If the labour market becomes more efficient so that the unemployed are more quickly matched with jobs, this

Accepted Answer

A)   could either increase or decrease the equilibrium level of unemployment.
B)   will decrease the equilibrium level of unemployment.
C)   will not affect the equilibrium level of unemployment.
D)   will increase the equilibrium level of unemployment.E) All of the above
F) A) and B)

Question 6

Which of the following is a type of inflation?

Accepted Answer

A)   Cost push
B)   Demand pull
C)   Profit- driven
D)   A and BE) All of the above
F) A) and D)

Question 7

The unemployment rate can drop even if the total number of people with and without jobs remains constant if

Accepted Answer

A)   people become disheartened about finding jobs and stop looking for work.
B)   people have been unemployed for so long that they no longer qualify for unemployment benefit.
C)   the size of the total population decreases.
D)   the size of the total population increases.E) A) and B)
F) A) and C)

Question 8

The position of the AS curve is influenced by all except which one of the following?

Accepted Answer

A)   Education and training
B)   Production costs
C)   Productivity
D)   Consumption
E)   TechnologyF) A) and B)
G) C) and D)

Question 9

Which of the following factors will cause a movement along the saving function?

Accepted Answer

A)   Expectations of a fall in prices
B)   An increase in personal taxation
C)   Moving into the recessionary phase of the business cycle
D)   ChristmasE) A) and C)
F) C) and D)

Question 10

Gross national product is

Accepted Answer

A)   the total amount of income received by the factors of production in the economy.
B)   a nation's total product minus what is required to maintain the value of its capital stock.
C)   the total market value of all final goods and services produced within a given period by factors of production owned by a country's citizens, regardless of where output is produced.
D)   the total market value of all final goods and services produced within a given period by factors of production located within a country.E) None of the above
F) A) and B)

Question 11

If we excluded stocks from GDP, we would be measuring sales not production.

Accepted Answer

A) True 
 B)False

Question 12

A nominal rise in GDP growth is preferred to a real rise in GDP growth.

Accepted Answer

A) True 
 B)False

Question 13

The largest income component of GDP is _____, whereas the largest expenditure component of GDP is _______.

Accepted Answer

A)   gross trading profits of companies; exports
B)   income from employment; consumption
C)   income from self- employment; investment
D)   rent; government purchasesE) All of the above
F) A) and B)

Question 14

What are the four major concerns of macroeconomics?

Accepted Answer

Four major concerns of macroec...

Question 15

Net property income from abroad is

Accepted Answer

A)   the payment for exports minus the payment for imports.
B)   the receipt of property income from the rest of the world minus payments of property income to the rest of the world.
C)   payments of property income to the rest of the world minus the receipt of property income from the rest of the world.
D)   payments of property income to the rest of the world plus the receipt of property income from the rest of the world.E) C) and D)
F) B) and C)

Question 16

Refer to the table below.
 The labour force

Accepted Answer

A)   equals 7,500.
B)   equals 5,500.
C)   equals 5,000.
D)   cannot be determined from this information.E) B) and D)
F) B) and C)

Question 17

Which two official measures of unemployment are commonly used in official statistics?
(i)  People in receipt of unemployment- related benefits such as a 'jobseeker's allowance'
(ii)  People who have never worked in their lives
(iii)  People of working age who are without work can immediately start working and are actively seeking employment
(iv)  People who have never actively sought employment

Accepted Answer

A)   (i)  and (iv) 
B)   (ii)  and (iii) 
C)   (i)  and (iii) 
D)   (iii)  and (iv) E) A) and B)
F) All of the above

Question 18

Household's disposable income is given by: GDY (at market prices) - taxes paid by firms +
 subsidies received by firms - depreciation - undistributed profits - personal taxes + benefits.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following statements regarding demand- pull inflation is false?

Accepted Answer

A)   Demand- pull inflation is caused by an excess of demand over supply.
B)   The steeper the AS curve, the greater will be the effect of demand- pull inflation.
C)   Demand- pull inflation is caused by continuous rightward shifts in aggregate demand.
D)   An adverse effect of demand- pull inflation is a decrease in national output.E) A) and B)
F) C) and D)

Question 20

Economic growth depends upon investment and the marginal efficiency of labour.

Accepted Answer

A) True 
 B)False

Exam 26: The Macroeconomic Environment of Business

Net property income from abroad is

Correct Answer
verified

Actual output cannot grow faster than potential output over the longer term.

Correct Answer
verified

The position of the AS curve is influenced by all except which one of the following?

Correct Answer
verified

Which of the following factors will cause a movement along the saving function?

Correct Answer
verified

Savings, taxation and exports are all withdrawals from the circular flow of income.

Correct Answer
verified

Economic growth depends upon investment and the marginal efficiency of labour.

Correct Answer
verified

Refer to the table below. The labour force

Correct Answer
verified

A nominal rise in GDP growth is preferred to a real rise in GDP growth.

Correct Answer
verified

The largest income component of GDP is _, whereas the largest expenditure component of GDP is ___.

Correct Answer
verified

If we excluded stocks from GDP, we would be measuring sales not production.

Correct Answer
verified

Which of the following is a type of inflation?

Correct Answer
verified

Which of the following statements regarding demand- pull inflation is false?

Correct Answer
verified

When the economy is at the peak of the business cycle, we would expect the balance of trade to be in surplus.

Correct Answer
verified

Correct Answer
verified

If labour markets were perfectly efficient, the unemployment rate would fall to zero.

Correct Answer
verified

Household's disposable income is given by: GDY (at market prices) - taxes paid by firms + subsidies received by firms - depreciation - undistributed profits - personal taxes + benefits.

Correct Answer
verified

The unemployment rate can drop even if the total number of people with and without jobs remains constant if

Correct Answer
verified

If the labour market becomes more efficient so that the unemployed are more quickly matched with jobs, this

Correct Answer
verified

What are the four major concerns of macroeconomics?

Correct Answer
verified
Four major concerns of macroec...
View Answer

Gross national product is

Correct Answer
verified

Exam 26: The Macroeconomic Environment of Business

Net property income from abroad is

Correct AnswerverifiedShow Answer

Actual output cannot grow faster than potential output over the longer term.

Correct AnswerverifiedShow Answer

The position of the AS curve is influenced by all except which one of the following?

Correct AnswerverifiedShow Answer

Which of the following factors will cause a movement along the saving function?

Correct AnswerverifiedShow Answer

Savings, taxation and exports are all withdrawals from the circular flow of income.

Correct AnswerverifiedShow Answer

Economic growth depends upon investment and the marginal efficiency of labour.

Correct AnswerverifiedShow Answer

Refer to the table below. The labour force

Correct AnswerverifiedShow Answer

A nominal rise in GDP growth is preferred to a real rise in GDP growth.

Correct AnswerverifiedShow Answer

The largest income component of GDP is _____, whereas the largest expenditure component of GDP is _______.

Correct AnswerverifiedShow Answer

If we excluded stocks from GDP, we would be measuring sales not production.

Correct AnswerverifiedShow Answer

Which of the following is a type of inflation?

Correct AnswerverifiedShow Answer

Which of the following statements regarding demand- pull inflation is false?

Correct AnswerverifiedShow Answer

When the economy is at the peak of the business cycle, we would expect the balance of trade to be in surplus.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If labour markets were perfectly efficient, the unemployment rate would fall to zero.

Correct AnswerverifiedShow Answer

Household's disposable income is given by: GDY (at market prices) - taxes paid by firms + subsidies received by firms - depreciation - undistributed profits - personal taxes + benefits.

Correct AnswerverifiedShow Answer

The unemployment rate can drop even if the total number of people with and without jobs remains constant if

Correct AnswerverifiedShow Answer

If the labour market becomes more efficient so that the unemployed are more quickly matched with jobs, this

Correct AnswerverifiedShow Answer

What are the four major concerns of macroeconomics?

Correct AnswerverifiedFour major concerns of macroec...View AnswerShow Answer

Gross national product is

Correct AnswerverifiedShow Answer

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Correct Answer
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Correct Answer
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The largest income component of GDP is _, whereas the largest expenditure component of GDP is ___.

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Four major concerns of macroec...
View Answer

Correct Answer
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