Blog: ECO403 QUIZ 1 Required Due date: 30th April, 2013

Question # 1
Which one is NOT a factor of production?

Land
Labor
Capital
Investment 

Question # 2Which of the following is counted in Gross Domestic Product?

The sale of a used computer.
The sale of an old house.
The sale of new car.
The sale of bonds. 

Question # 3Human wants are:

Always fixed.
Limited.
Unlimited. 
Likely to decrease over time.


Question # 4
A firm hires worker up to the point where marginal product of labor (MPL) is--------:

equal to W/P. 
greater than W/P. 
less than W/P.
equal to prices.

Question # 5In economics marginal means:

Incremental
Additional
Extra
All of given options.

Question # 6In a given year, a country's exports total Rs25 million & imports are Rs27 million. Its net exports are:

Rs.52 million.
Rs. 25 million.
Rs. - 2 million.
Rs. + 2 million.

Question # 7The cost of next best alternative forgone is best described by the:

Principle of diminishing returns. 
Marginal principle.
Principle of opportunity cost.
Reality principle.

Question # 8Investment includes:

Business Fixed Investment.
Residential Fixed Investment.
Inventory Investment.
All of the given options. 

Question # 9
Assume the first five units of labor input generate corresponding total outputs of 300, 450, 550, 600 and 620. The marginal product of the third unit of labor is:

100
150
300
450

Question # 10
Which of the following is NOT an example of consumption(C) expenditure?

Computer
Furniture
Fighting plane  
Food

Question # 11
The GDP deflator was 100 in the year 2007 and was 109 in year 2009. From this statement, we can conclude that:

The price level increased by 9% from 2007 to 2009.
The price level increased by 209% from 2007 to 2009.
The price level increased by 109% from 2007 to 2009.
The price level increased by 100% from 2007 to 2009.


Question # 12
------------is equal to Gross National Product (GNP) minus net factor income from abroad.

Net national product.
Disposable personal income.
National income.
Gross domestic product. 

Question # 13
The relationship between consumer spending and income is known as the: 

45-degree line.
Consumption function.
Investment function.
Consumer price index.

Question # 14
Assume the first five units of labor input generate corresponding total outputs of 300, 450, 550, 600 and 620. The marginal product of the third unit of labor is:

100
150
300
450

Question # 15
Which of the following statements best describes the definition of scarcity?

There are no buyers willing to purchase what sellers have produced.
There is more than enough money to satisfy consumers' wants.
Resources are limited in quantity and can be used in different ways.
There are not enough goods to satisfy all of the buyers' demand. 

Question # 16
Which of the following is NOT the component of aggregate demand?

Consumption 
Investment
Government purchases.
Capital

Question # 17
Gross Domestic product is sum of the market value of the:

Intermediate goods.
Intermediate goods & used goods.
Intermediate goods & final goods.
Final goods and services.

Question # 18
The demand for labor curve shows:

An inverse relationship between the real wage and the number of workers who are willing to work.
That real wages are constant.
An inverse relationship between the real wage and the amount of labor hired.
A positive relationship between the real wage and the number of workers who are willing to work. 

Question # 19
The standard of living is often measured by which of the following?

Real GDP per capita.
Real GDP / depreciation.
Real GDP × population.
Real GDP plus depreciation. 

Question # 20
Which of the following would be a macroeconomic question?

How have prices of specific commodities increased over time?
 How has output in specific markets changed over time?
How have personal incomes in general increased over time?
How have the incomes in a particular occupation changed over time?

Question # 21
Real GDP (Gross Domestic Product) is measured:
In the prices of a base year.
At a constant output level but at current prices.
As the difference between the current year’s GDP and last year’s GDP. 

Question # 22
If an economy has population of 20 million people, 10 million unemployed and 7 million employed, what is rate of employment?

20/17 *100
10/7*100
7/17*100
7/37*100

Question # 23
In a given year, a country's exports total Rs25 million & imports are Rs27 million. Its net exports are:

Rs.52 million.
Rs. 25 million.
Rs. - 2 million.
Rs. + 2 million. 

Question # 24
Nominal gross domestic product is measured in ---------------prices while real gross domestic product is measured in ------------prices.

Current; Constant
Constant; Current
Final; Intermediate price
Retail; Whole sale