ECO403 Final Term Past Papers

FINALTERM EXAMINATION

SPRING 2007 ECO403 - MACROECONOMICS (Session - 4 ) Marks: 60 Time: 150min

Student Name:

Center Name/Code:

Exam Date: Wednesday, July 04, 2007

INSTRUCTIONS:

All questions are compulsory.

This exam consists of 15 Multiple Choice Questions (MCQ’s) carrying 1 mark each,5 fill in the blanks carrying 1 mark each,5 true false carrying 1 mark each, 3 Short questions carrying 5 marks each and 2 Descriptive questions carrying 10 marks.

You are required to show all the working of short questions as well as Descriptive question.

This examination is closed book, closed notes, closed neighbors.

Do not ask any question about the contents of this examination from anyone.

You may wish to pace yourself with your own watch, but the Supervisor will be the official timekeeper of the test.

Failure to comply with the Supervisor’s directions will result in your test being cancelled. Please comply with supervisor’s directions to avoid any unpleasant event. Use of mobile phone is strictly prohibited. It must be "switched off" if it is in your custody.

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.

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 not money? (1 marks)

Currency

Checks

Credit cards

Time deposits

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

Demand deposits