ECO403 Final Term Objective

ECO403 – MACROECONOMICS · Composed By Faheem Saqib · A Mega File for Final term & Solved Quizzes · FINALTERM EXAMINATION

SPRING 2008 ECO403 - MACROECONOMICS (Session - 4 ) Marks: 60 Time: 150min

Question Question Marks Question Marks

Q1. Scarcity can best be defined as a situation in which: (1 marks)

There are no buyers willing to purchase what sellers have produced.

1. 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.

Q2. In the circular flow diagram, firms _____________ inputs and households ____________ products. (1 marks)

Supply; Demand

Demand; supply

Supply; supply

Demand ; demand

Q3. Gross domestic product measured in terms of the prices of a fixed, or base, year is: (1 marks)

Base GDP.

Current GDP.

Real GDP.

Nominal GDP.

Q4. The number of people unemployed equals: (1 marks)

The number of people employed minus the labor force.

The labor force plus the number of people employed. The number of people employed divided by the labor force.

The labor force minus the number of people employed.

Q5. Keeping in mind the functions of money, which one of the following is money? (1 marks)

Currency

Check

Credit cards

Time deposits

Q6. Which of the following would not be included in M2? (1 marks)

Demand deposits

Checking accounts

Money market accounts

Q7. The relationship between consumer spending and income is known as the: (1 marks)

45-degree line.

Consumption function.

Investment function.