Value of Goods and Services - Principles of Macroeconomics - Exam, Exams of Macroeconomics

Download Value of Goods and Services - Principles of Macroeconomics - Exam and more Exams Macroeconomics in PDF only on Docsity!   1    Semester 2 Examinations 2010/ 2011 Exam Code(s)  1BA1, 1BA11, 1BA6, 1BA7, 1BCS1, 1BCW1, 1BFS1, 1BGL1,1BHR1,  1BIS1, 1BTP1, 1BWM1, 1BWM1 Exam(s)  1st B.A., 1st B.A. (Hist.), 1st B.A. (PSP), 1st B.A. (Psych.), 1st B.A.  (Child St.), 1st B.A. (Creat. Writ.), 1st B.A. (Film St.), B.A. (Gaeilge &  Leann an Aist.), 1st B.A. (Human Rights),  1st B.A. (Irish St.), 1st B.A.  (Theatre & Perform.), 1st B.A. (Women St.) Module Code(s) EC136 Module(s) Principles of Macroeconomics Paper No. 1 Repeat Paper External Examiner(s) Professor Pat McGregor & Professor Cillian Ryan Internal Examiner(s) Professor John McHale Professor Terrence McDonough Instructions: Answer all questions (no negative marking). Please use the MCQ  answer sheet provided, using lines 1 – 50.  Duration 2 hrs. No. of Pages Discipline(s) Economics Course Co-ordinator(s) Terrence McDonough Requirements: MCQ YES Release to Library: Yes No Handout Statistical/ Log Tables Cambridge Tables Graph Paper Log Graph Paper Other Materials X    2  1. The value of all goods and services produced domestically in the economy in a year, regardless of the nationality of the owners of the factors of production, is: a. Net exports. b. Gross domestic product. c. Self-employment income. d. National savings. 2. According to neoclassical theory, the diminishing marginal revenue product of labour leads to a: a. downward-sloping Demand curve for labour. b. vertical Demand curve for labour. c. upward-sloping Demand curve for labour. d. downward-sloping Supply curve for labour. 3. According to neoclassical theory, the substitution and income effects make the labour Supply curve: a. downward-sloping. b. horizontal. c. vertical. d. backward-bending. 4. In the neoclassical labour market the equilibrium wage rate and the equilibrium quantity of labour are determined where: a. the Supply curve exceeds the Demand curve. b. the Supply curve intersects the Demand curve. c. the Demand curve exceeds the Supply curve. d. you draw the vertical Demand curve, no matter the Supply curve. 5. In the neoclassical labour market, which are the effects of a minimum wage law? a. if the minimum wage is higher than the equilibrium wage, then there will be unemployment. b. always an increase in wages. c. always a decrease in wages. d. if the minimum wage is lower than the equilibrium wage, then there will be an increase in wages. 6. In order to study inflation in a neoclassical framework, which is the appropriate model? a. the labour market. b. the externalities market. c. the aggregate demand and supply model. d. you don’t need a model, you must look at the data. 7. According to the neoclassical theory, which is the difference between the long-run and the short-run supply curve? a. the first is vertical at the natural level of output, the second is downward-sloping. b. the first is vertical at the natural level of output, the second is upward-sloping. c. there is no difference, they are both vertical. d. there is no difference, there is just one supply curve both for the short and the long run.   5  21. Which of the following is the slope of the consumption function? a. 45 degree line b. marginal propensity to consume c. marginal propensity to save d. autonomous consumption C = 30 + 7/8 GDP I = 100 G = 80 X = 20 M = 1/8 GDP 22. What is the equilibrium level of income in this model? a. 920 b. 1840 c. 230 d. 460 23. Suppose autonomous consumption rises by 20. The new equilibrium will be a. 1000 b. 80 c. 1020 c. 1920 24. In the Marxian framework profits depend on a. keeping wages low b. keeping effort high c. keeping work organization in the hands of management d. all of the above 25. When the labour pool fills up a. wages rise b. wages fall c. profits go down d. layoffs increase 26. The Marxian solution to unemployment breaks the link between a. hiring more workers and wages rising b. falling profits and layoffs c. layoffs and falling wages d. falling wages and rising profits 27. Money is a creature of the state is the position of a. monetarism b. Keynesianism c. Chartalism d. barter theory   6  28. The money multiplier is 1 over a. the Required Reserve Ratio b. the Open Market Operations c. the Marginal Lending Facility d. none of the above 29. Which of the following actions might be used to fight inflation from the Keynesian perspective? a. raise taxes b. increase the money supply c. increase government spending d. promote exports 30. Business cycle expansions can cause inflation because a. labour costs rise b. materials cost rise c. favourable demand conditions encourage price increases d. all of the above 31. In the theory of structural inflation cutting off the increase in the money supply leads to a rise in a. prices b. interest rates c. money demand d. wages 32. In the Keynesian inflation analysis equilibrium GDP is a. above the 45 degree line b. above full employment GDP c. below the level of aggregate expenditure d. below full employment GDP 33. The accelerator relates a. additional investment to additional GDP b. investment to the marginal propensity to consume c. investment to government spending d. investment to the level of the money supply 34. In the multiplier-accelerator model of the business cycle, the downturn is caused by a. the stickiness of investment b.the stickiness of consumption c. small drops in investment lead to larger drops in GDP d. small increases in investment lead to larger increases in GDP 35. In the financial business cycle, the fluctuation of asset prices leads to a. opportunities for speculation b. asset purchases for future income streams c. certain payments on debt d. pervasive optimism   7  36. Which of the following doesn’t rise in the expansionary phase of the Marxian business cycle. a. wages b. effort c. raw materials prices d. interest rates 37. As income rises a. average propensity to consume falls b. average propensity to consume rises c. debt falls d. inflation falls 38. The Marxian theory of the business cycle revolves around the movement of a. demand b. the money supply c. profits d.debt levels 39. One criticism of neoclassical trade theory is that it is based on unrealistic assumptions. These assumptions include all of the following except a. perfect information b. widespread unemployment c. no monopoly power d. no transport costs 40. “The play of forces in the market normally tends to increase, rather than to decrease the inequalities between regions.” This statement is consistent with a. institutional development theory b. cumulative causation c. import substitution policies d. all of the above 41. Kuznets believed “The transformation of an underdeveloped into a developed country is not merely the mechanical addition of a stock of physical capital; it is a thoroughgoing revolution in ...” a. the level of technical expertise of the population. b. the patterns of life c. the level of population d. the level of integration into the global economy 42. According to dependency theory local elites tend not to invest in a. land b. speculation c. manufacturing d. speculation