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    Economics Pasco

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    Economics Pasco

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    Economics past question

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    Economics pasco

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    Economics past question

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    12 views17 pages

    Economics Pasco

    Uploaded by

    Caleb Asharley
    Economics past question

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    © All Rights Reserved
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    ITY OF SCIENCE AND TECHNOLOGY, KUMASI KWAME NKRUMAH UNivers| COLLEGE OF AGRICUL TURE AND NATURAL RESOURCES caper FACULTY OF AGRICULTURE q. FIRST SEMESTER EXAMINATION, 2019 2020 ‘ BSc. (AGRIBUSINESS a NAGEMENT) I t ABM 253: INTRODUCTION TO MACROECONOMICS 12® December, 2019 Time allowed: hours 1. Macroeconomics deals with: A. The behavior of firms, Economic apgrevates ities of individual units. © The acti D. The behavior of the electronics industry. 2. The study of inflation is part of: A. Normative economics. 5 omies. ~ Microeconomics. D. Descriptive economics. ge0ds and services in an economy is known as: 3. The total demand for A. National demand. B. Economy-wide demand. C. Gross national produ, b AWUMIA Aggregate demand. 4. The circular flow of goods and incomes shows the relationship between: A. Income and money. B. Wages and salaries. C. Goods and services. =D» Firms and households. 5. The period of the business cycle in which real GDP is increasing is called the: cw. Expansion, B. Peak. C. Recession. D. Stagflation a ume that, in the population, 95 million people worked for pay last week, 5 million people did : oa work ry pay But hed been seeking a job, 5 million people did not work for pay and had not been seeking a job for the past several months, and 45 million were under age 16. The unemployment rate, given these numbers, is: xa ee Be 10%. 7 in which w, n-berwoe? JObs or are searching for new ‘and better 7 sare ogame Consider three consumer goods: 1 ‘Good X, 100 of Good ¥, and 100 of Good Z.. In the base seer, Goo ‘prise of Ghet.on Good soldat a price of Gh¢ 1.00, and Good Z sold at a price of Gh¢ 1.00. In the current yeu, Good X sold at a price of Gh¢3.00, Good Y sold at a price of Ghie5.00, and Good Z sold at a price of Gh¢10.00. The Consumer Price Index (CPI) for the current year B. 300. Cc. 500. emp. 600. 9. Assume that an economy begins in macroeconomic equilibrium. Then, taxes are significamly decreased, AS a result of this change: A. there is expansion and inflation in the economy. B. there is stagflation in the economy. there 1s recession and deflation in the economy. SW. there is expansion and deflation in the economy. 10. At an income of Gh¢ 100,000.00, I spent Gh¢ 90,000.00 on consumer goods. When my income rose to Gh¢200,000.00, | spent Gi¢ 160,000.00 on consumer goods. My marginal propensity to consume is: A. 0.9. ae 8 B. 0.8. r ss @ 0.7. D0 Bawumia 11. Which of the following would cause business investment spending to rise? an increase in real interest rates from 5% to 8%. B. a decrease in the corporate profits tax rate from 48% to 34%, C. a reduction of the investment tax credit from 10% to 2%. D. sales falling in relation to capacity from 90% to 60%. 12. Assume that net exports increase by $1 billion. Equilibrium Real GDP will rise by more than $1 billion. This is because: . “Ap an increase in net exports appreciates the cedi causing a further increase in net exports. B. an increase in net exports causes an increase in tax revenues which increases government spending. .C. an increase in net exports increases income causing an increase in induced consumption. ‘D. an increase in net exports causes aN increase in the money supply. . “a 13. The Phillips curve describes the relationship between: A. the federal budget deficit and the trade deficit. B. savings and investment, ©@# the unemployment rate and the inflation rate. D. marginal tax rates and tax revenues. 14. An increase in the money supply causes: A. interest rates to fall, investment spending to rise, and aggregate demand to rise. B. interest rates to rise, investment spending to rise, and aggregate demand to rise, CC. interest rates to rise, investment spending to fall, and ageregate demand to fall. D. interest rates to fall, investment spending to fall, and aggregate demand to fall. 15: The tendengy to strive consunly towards a bh consumption level apd to, emilee ‘consumption patterns of one’s rich neighbours and associates is an example ¢ A. Absolute income hypottiesis B. Life cycle hypothesis C. Permanent income hypothesis “Pe Relative income hypothesis 16. Inflation is: “as an increase in the overall price level. B. an increase in the overall level of economic activity. €. adecrease in the overall level of economic activity. D. adecrease in the overall price level. 17. Aggregate supply is the total amount: ‘A. produced by the government. B. of goods and services produced in an economy. C. of labour supplied by all households. - D. of products produced by a given industry. b ADU Mm [g 18. Net domestic product is the difference between ‘A. gross national income and net factor income from abroad. B. gross national product and depreciation. €. gross domestic product and depreciation. \D. gross domestic product and net factor income from abroad. 19. All the following are problems of monetary policy except A. Tax evasion B. Poor banking habit C. Underdeveloped money market =D: Lagged responses 20. The monetarist school is largely credited to the works of A. Adam Smith “By Milton Friedman C. John Maynard Keynes 4A. David Ricardo ype ion from abroad? 21, Which one of the following M©Asures woysd reduce competition - protection in tariff. jewing existing impo Wotas upwards The removal of subsidies © domesti:producet® ic D. A depreciation of the domestic currency, decreasing imports 22. Which one of the following {YP° OF import control would havea direct effect on by a specific amount? ‘A. An increase in impoet tariffs. B. Changes i safety specifications. import C. An increase in the number of import licences. Di A decrease in import quotas, POF 23. The law of comparative advantage implies that Wrawe between two countries: of Both. A. Isalwaysto the advantage fficient 5. Can be to the advantage of both €¥en though one may be more productively efficient at Producing everything. ‘C. Is beneficial to both if the exporter USeS less resources than the importer would use to produce the same quantity of goods. =— D. Is to the advantage of both if countries import only those goods that they are incapable of Producing themselves. 24. Gross national income is ‘A. the product of gross domestic product and net factor income from abroad. B. the difference between gross domestic product and net factor income from abroad. “€: sum of gross domestic product and net factor income from abroad. D. obtained by dividing gross domestic product by net factor income from abroad. 25. Which one of the following is likely to be the main economic consequence of a period of rising unemployment? A. Arising price level, which reduces the real incomes of consumers. B. A rising real national output and income. fa pou mM { g C. An increase in consumer confidence. ®D. A decline in real national output and inéome 26. A government wishing to reduce the level of unemployment through the use of an expansionar ‘fiscal policy would be most likely to: A. Cut interest rates “B. Increase the size of the budget deficit C. Boost the money supply by relaxing credit controls D. Encourage a depreciation of the exchange rate 27. An individual who has just finished a period of training and is now searching for a job is part of the: A. Employed labour force. B. Frictionally unemployed. C. Structurally unemployed. D. Cyclically unemployed. 28""Which unemployment occurs if an areraf engine works closes because of recession? A. Frictional, B. Seasonal C. Technological. BD, Cyclical 29. In a population of $0 milli Re emia ion, 26m are employed ANd 2m ynemployed. The labour force is: B28 million, C. 26 million. D. 2million. 30. Gross domestic product at fuctor cost is derived f i domestic product at market pri A Cc ees end ig wabea pe = neehy ‘beracting andicest taxes. ie D. adding subsidies 31, Which of the following set of macroeconomic variables "= leakages? K ‘and Government expenditure, B. Imports and Investment expenditures, © Government expenditure and Exports, eB, Taxes and Imports 32. As the price level increases: ‘A. The quantity of money: demanded falls. B, The value of money falls. C. The demand for credit will increase. ‘Dmx Real GDP will increase 33. One of the consequences of inflation is that iE at qemCauses creditors to benefit at the expense OTs. Ban encourage people to increase saving. b ADU Mm { q C. Causes debtors to benefit at the expense of creditors, D. Causes people to postpone consumption. 34. Which one of the following can lead to a rise in inflation? An increase in: A, Unemployment rate \B. Cost of production. C. Productive capacity. D. The level of direct taxation. 35, The Bank of Ghana's Monetary Policy Committee increased policy rates by 1.5% to try to curb inflationary pressures. An increase in interest rates might be expected to ‘help reduce inflation because a rise in interest rates will likely: A. Reduce consumer spending. 1 94. Which of the following. i a ena A. Creditors Ups is mos eyo ee rm nape tog =A B. Fixed income earners =@! Debtors D. Savers ‘ 95. Which of the following will it owing will increase aggregate savings? “As A decease in disposable income a increase in the stock of durable goods Cc. An increase in total household it i aaa D. An increase in the general price level 96. If a country’s consumer price index was 2 is 190 thi: i lowing must be TRUE for the country from eee se ‘A. The quantity of goods produced has decreased. B. The inflation rate has increased by 5 percent. G. The price level has decreased by 5 percent. D. ‘The unemployment rate has decreased by 5 percent. 97. The national debt of Ghana is the ‘A. Accumulated government spending, less the interest paid on bonds B. Accumulation of all past government deficits C. Difference between government tax revenues ‘and government spending during a fiscal year =D: Money owed to the Central Bank for reimbursement of domestic bond holders 96. Yamal lost his computer programming job when it was outsourced to a company abroad. After looking unsuccessfully for several months for another job, he gave up and returned to school to receive training to become a physical therapist. Currently Jamal is classified as sAeStructurally unemployed B. Frictionally unemployed C. Cyclically unemployed D. Not in the labour force 99. In the simple macroeconomic model, “autonomous expenditures” are A. Induced expenditures B. Non-domestic expenditures =€. Not dependent on national income Dp. Dependent on national income tiv 4 or as deposits with the ti coir deposits in their vaults Commercial banks ial 100. central banik. This fraction is KO"? 8s A. The excess reserve ratio B. Tho fractional reserve C. The required reserve ed in the D. The reserve ratio 101. (On the balance-of.paymet'S Statements, merchandise imports are classifi A. Current account B, Capital account C. Unilateral transfer account D. Official settlements account 102. One effect of an appreciati a is that A. It increases the denen tee ‘Gio zoo Calon) 8. Ghanaians can buy imports more ¢heaply C. Ghanaian incomes decrease . D. Foreigners will demand more Ghanaian exports 103. An example of Ghana Cedi (GHF) i"foWs on the balance on current account is A. the export of services B. unilateral transfers of Ghana Cedi (Gh¢) to Ghanaian students in Europe C. changes in Ghana's assets abroad D. the import of services 104. If the Ghanaian Cedi appreciates telative to the Japanese yen, then A. More yen will be required to purehase one Ghana Cedi B. Fewer yen will be required to purchase one Ghana Cedi C. the Ghana Cedi has weakened relative to the yen D. Japan's demand for Ghanaian goods will increase 105, The balance on current account includes all of the following items exeept A. Merchandise exports minus merchandise imports B. Exports of services minus imports of services PAS C. Income receipts minus income payments on investments D. Changes in Ghanaian assets owned abroad and foreign assets owned in Ghana In the long run, countries with faster inflation have had A. Appreciating currencies :B. No change in the value of their currencies C. Depreciating currencies D. Atsome times and in some places, appreciating currencies, while at other times in other places, depreciating currencies. Which of the following observations about a tariff is nor true? A tariff 107. A. Is usually an ad valorem tax »B. Can raise revenues for the imposing government C. Usually benefits domestic producers more than consumers D. Can be used to protect foreign industries

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