Macroeconomics (ECO403) virtual university past papers

Microeconomics (ECO403) virtual university past papers. eco403 midterm solved mcqs papers by moaaz . eco403 finalterm solved mcqs papers by moaaz

Q: The Slow residual measures:?

A. The average growth rate of productive inputs less an adjustment for technological progress.
B. The part of the growth of output not attributable to the growth of inputs.
C. The share of net product that constitutes real capital income.
D. The dynamic efficiency of an economy.


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Q: The change in total product of labor resulting from a change in a labor input is known as:?

A. Marginal product of capital.
B. Average product of labor.
C. Average product of capital.
D. Marginal product of labor.


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Q: The circular flow is used to make the point that:?

A. Households are both earners and spenders.
B. Production generates income.
C. Unemployment only occurs during a recession.
D. Rising prices never occur during times of unemployment.


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Q: If S-I and NX are exactly equal to zero i.e the value of imports equals the value of exports then:?

A. We have trade surplus.
B. We have trade deficit.
C. We have balance trade.
D. We have no trade at all.


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Q: Which of the following expenditures are counted as part of government consumption and investment??

A. Transfer payments
B. Interest payments on the government debt
C. Expenditures by state and local governments
D. Social Security benefits


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Q: In the Solow growth model, persistent increases in standards of living are due to which of the following??

A. Technological progress, which leads to sustained growth in output per worker.
B. A high saving rate, which leads to sustained high rates of growth.
C. A high rate of population growth, which leads to a larger labor force.
D. All of the given options.


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Q: Money that has an alternative use as an economic good is known as:?

A. Commodity money.
B. Fiat money.
C. E-money.
D. Bad money.


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Q: According to Solow model, all other things unchanged, countries with rapidly growing population will tend to:?

A. Be poorer than countries with lower population growth.
B. Grow slower than countries with lower population growth.
C. Have lower marginal products of capital than countries with lower population growth.
D. Be richer than countries with lower population growth.


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Q: Which of the following equations is correct??

A. Real exchange rate = (exchange rate + domestic price level) / foreign price level
B. Exchange rate = (real exchange rate × domestic price level) / foreign price level
C. Exchange rate = (nominal exchange rate × domestic price level) / foreign price level
D. Real exchange rate = (nominal exchange rate × domestic price level) / foreign price level


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Q: All of the following are categories of national income EXCEPT:?

A. Net interest
B. Rental income
C. Corporate profits
D. Depreciation


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