According to the Office of National Statistics, a husband who chooses to stay home and take care of the

household is *

 not in the labour force. A

 a discouraged worker.
 unemployed.
 employed.

An increase in the budget deficit that causes the government to increase its borrowing *

 shifts the demand for loanable funds to the right.

 shifts the supply of loanable funds to the right.
 shifts the supply of loanable funds to the left.
 shifts the demand for loanable funds to the left. A

If there is an increase in the price of apples which causes consumers to purchase fewer kilograms of
apples and more kilograms of oranges, the CPI will suffer from *

 none of these answers.

 base year bias.
 bias due to unmeasured quality change.
 substitution bias. A
 bias due to the introduction of new goods.

The minimum level of unemployment that the economy normally experiences is known as *

 frictional unemployment.
 cyclical unemployment.
 the natural rate of unemployment. A
 efficiency wage unemployment.

Gross Domestic Product can be measured as the sum of *

 consumption, investment, government purchases, and net exports. A

 final goods and services, intermediate goods, transfer payments, and rent.
 Net National Product, Gross National Product, and Disposable personal income.
 investment, wages, profits, and intermediate production.
 consumption, transfer payments, wages, and profits.

If nominal GDP in 2018 exceeds nominal GDP in 2020, then the production of output *

 must have fallen.

 may have risen, fallen, or stayed the same because there is not enough information to
determine what happened to real output. A
 must have risen.
  must have stayed the same.

The following table contains information about an economy that produces only pens and books. The
base year is 2003. What is the percentage increase in real GDP from 2003 to 2004? *

Captionless Image

 0 percent
 12.5 percent
 32.5 percent
 37 percent
 17.5 percent

If the nominal interest rate is 7 percent and the inflation rate is 3 percent, then the real interest rate is *

 4 percent. A
 -4 percent.
 10 percent.
 3 percent.
 21 percent.

A reasonable measure of the standard of living in a country is *

 nominal GDP per person.

 the growth rate of nominal GDP per person.
 real GDP per person. A
 real GDP.
 nominal GDP.

How is your purchase of a €40,000 BMW automobile that was produced entirely in Germany recorded in
the Bangladesh GDP accounts? *

 Net exports decreases by €40,000.

 There is no impact because this transaction does not involve domestic production.
 Investment increases by €40,000 and net exports increases by €40,000.
 Net exports increases by €40,000.
 Consumption increases by €40,000 and net exports decreases by €40,000. A

The following table contains information about an economy that produces only pens and books. The
base year is 2003. What is the percentage increase in prices from 2003 to 2004? *

Captionless Image

 16 percent
 38 percent
  13 percent
 22 percent A
 0 percent

Gross Domestic Product is the sum of the market value of the *

 intermediate goods.
 inferior goods and services.
 manufactured goods.
 normal goods and services.
 final goods and services. A

Bangladesh's Gross Domestic Product measures the production and income of *

 the domestic service sector only

 the domestic manufacturing sector only
 Bangladesh-owned firms no matter where they are located in the world.
 none of this answers
 people and factories located within the borders

The following table contains information about an economy that produces only pens and books. The
base year is 2003. What is the percentage increase in real GDP from 2004 to 2005? *

Captionless Image

22 percent

7 percent

27 percent

0 percent

32 percent

The following table contains information about an economy that produces only pens and books. The
base year is 2003. What is the approximate percentage increase in prices from 2004 to 2005? *

Captionless Image

38 percent

22 percent

13 percent

16 percent
0 percent

If the nominal interest rate is 12 percent and the rate of inflation is 7 percent, then the real rate of
interest is 5 percent. *

False

True A

Cigarettes should be valued in GDP at TK 320 per pack because the buyers paid TK 320 per pack, even
though TK 250 of market price is tax. *

True A

False

Nominal GDP employs current prices to value output while real GDP employs constant base-year prices
to value output. *

False

True A

For an economy as a whole, income equals expenditure because the income of the seller must be equal
to the expenditure of the buyer. *

False

True A

It is impossible for real interest rates to be negative. *

True

False A

An increase in the price of helicopters purchased by the UK armed forces is captured by the CPI. *

True

False A

A country with a larger GDP per person generally has a greater standard of living or quality of life than a
country with a smaller GDP per person. *

True A

False
If your wage rises from €500 per week to €625 per week while the CPI rises from 112 to 121, you should
feel an increase in your standard of living. *

False

True A

An increase in the price of diamonds will have a greater impact on the CPI than an equal percentage
increase in the price of food because diamonds are so much more expensive. *

False A

True

When the Dhaka North City Corporation builds a new school building, the investment component of
GDP increases. *

False A

True

Nominal GDP person represents the standard of living of a country *

False A

True