Download NUI Galway - Economics Exam 2010/2011: Macroeconomic Theory Questions and more Exams Macroeconomics in PDF only on Docsity!
Ollscoil na hÉireann, Gaillimh GX_____
National University of Ireland, Galway
Resit Examinations 2010/
Exam Code(s) 1BA1, 1BA11, 1BA6, 1BA7, 1BCS1, 1BCW1, 1BFS1, 1BGL1,1BHR1, 1BIS1, 1BTP1, 1BWM1, 1BWM1, 1EM1, 1OA Exam(s) 1 st B.A., 1 st B.A. (Hist.), 1 st B.A. (PSP), 1 st B.A. (Psych.), 1 st B.A. (Child St.), 1st^ B.A. (Creat. Writ.), 1st^ B.A. (Film St.), B.A. (Gaeilge & Leann an Aist.), 1st^ B.A. (Human Rights), 1st^ B.A. (Irish St.), 1st^ B.A. (Theatre & Perform.), 1st^ B.A. (Women St.), Erasmus, Occasional Module Code(s) EC Module(s) Principles of Macroeconomics Paper No. Repeat Paper 1 External Examiner(s) Professor Patrick McGregor & Professor Cillian Ryan Internal Examiner(s) Professor John McHale Professor Terrence McDonough
Instructions: Answer all questions (no negative marking). Please use the MCQ
answer sheet provided, using lines 1 – 50.
Duration 2 hours
No. of Pages 9 pages in total Department(s) Economics Course Co‐ordinator(s) T. McDonough Requirements : MCQ Yes Handout Statistical Tables Graph Paper Log Graph Paper
- The most common measure of economic activity is: a. Net exports. b. Self‐employment income. c. Gross domestic product. d. National savings.
- Which are the three methods to measure the economic activity (hint: think about the circular flow model): a. Expenditure, income, and output. b. Exports, imports, and exchange rates. c. Gross domestic product, Gross National Income, net taxes. d. Statistics, economic variables, and economic models.
- According to neoclassical theory, can factor prices be explained in terms of standard demand and supply analysis? a. No: demand and supply are not neoclassical tools. b. Yes, but only certain factors. c. Yes. d. No: stock‐flow consistent models are needed.
- According to neoclassical theory, in the labour market: a. Firms supply labour, householders demand labour. b. Firms demand labour, householders supply labour. c. There is a fixed amount of supplied labour decided by the government. d. Firms demand labour, but there is no supply, therefore a demand and supply analysis is useless.
- In the neoclassical labour market the equilibrium wage rate and the equilibrium quantity of labour are determined where: a. the Supply curve exceeds the Demand curve. b. the Supply curve intersects the Demand curve. c. the Demand curve exceeds the Supply curve. d. you draw the vertical Demand curve, no matter the Supply curve.
- In a neoclassical framework, the aggregate demand and supply model can be used to study: a. the labour market. b. growth and business cycles. c. the electricity market. d. you don’t need a model, you must look at the data.
- According to the neoclassical theory, what influences aggregate demand? a. The prices of factors of production. b. Aggregate demand is fixed, therefore nothing can influence it. c. Consumption in the short run, investment in the long run. d. Consumption, investment, government spending, and net exports.
- According to neoclassical theory, which are the two possible types of inflation? a. government spending‐led inflation and private sector‐led inflation. b. imports‐related inflation and exports‐related inflation. c. macroeconomic inflation and microeconomic inflation. d. demand‐pull inflation and cost‐push inflation.
- In the presence of costly environmental externalities, is it possible to correct inefficient market equilibriums? a. No, the market will never get to the efficient equilibrium. b. No, because the equilibrium is always efficient. c. Yes, but only in the very long run. d. Yes, but it is not easy (e.g., externalities must be internalized).
- What is the optimal level of pollution according to the neoclassical theory of environmental externalities? a. Zero. b. There is no optimal level of pollution. c. The level that the society decides to be willing to accept. d. 100mg/Km^2 of CO 2.
- Who are the important actors and what are the important behaviours are two questions involved in a. government regulation of the economy b. business strategy c. a model of the economy d. the determination of aggregate demand
- Individuals are the important actors in which school of economics? a. Neoclassical b. Marxian c. Institutional d. Keynesian
- In the lecture McDonough argued the relationship between theory and facts is a. dialectical b. overdetermined c. tenuous d. none of the above
- Which of the following is not a reason for teaching multiple perspectives? a. Students can make better informed policy choices. b. Correct views can be compared with false views. c. A greater variety of economic phenomena can be considered. d. A greater fund of explanatory modes can be employed.
- Profit is to Marxian theory what _____ is to neoclassical theory. a. scarcity b. choice c. price d. opportunity cost
- Wage labour characterizes a. communism b. slavery c. feudalism d. capitalism.
- Instability is the key factor in a capitalist economy according to which school? a. Neoclassical b. Marxian c. Institutional d. Keynesian C = 30 + 7/8 GDP I = 100 G = 80 X = 20 M = 1/8 GDP
- What is the equilibrium level of income in this model? a. 920 b. 1840 c. 230 d. 460
- Suppose autonomous consumption rises by 20. The new equilibrium will be a. 1000 b. 80 c. 1020 d. 1920
- The Marxian solution to unemployment involves a. allowing wages to fall. b. raising aggregate expenditure. c. cutting the link between private profit and investment. d. reducing the power of unions.
- In the Marxian theory of unemployment, expansion results in a. rising wages and falling profits b. rising wages and rising profits c. falling wages and rising profits d. falling wages and falling profits
- Aggregate expenditure influences the level of investment is a statement of the a. multiplier principle b. accelerator principle c. inflationary gap d. money illusion
- Repeating a pattern of recession, trough, recovery, peak creates a. Keynesian demand problems b. unemployment c. inflation d. a business cycle
- Borrowing is risky because a. yield on investments is uncertain b. payments on debt are certain c. banks are subject to default d. both a and b
- According to the Marxian theory which of the following is favourable to profits during the upturn? a. demand b. effort c. wages d. raw materials prices
- Gunnar Myrdal thought the play of market forces would a. increase inequalities b. decrease inequalities c. have little impact on equalities d. be the most important force in promoting development
- The development of underdevelopment is a a. neoclassical position b. Marxian position c. Keynesian position d. institutional position
- The financial environment is characterized by a. uncertainty b. speculation c. debt finance d. all of the above
- Which of the following would not be an institutional critique of the neoclassical position on trade? a. it doesn’t take account of monopoly power b. it doesn’t take account of scale economies c. it assumes imperfect information d. it assumes no unemployment
- the Marxian approach to development argues it is important for countries to a. find their comparative advantage b. overcome the forces of cumulative causation c. control the surplus produced d. get the prices right
- Ecological economics argues that between capital forms there is a. limited substitutability b. perfect substitutability c. a simple system of property rights d. an equality of well‐being outcomes
- Potential contradictions within global neoliberalism included all of the following except a. insufficient aggregate demand b. rising unit labour costs c. financial and monetary fragility d. environmental crises
- Expected future income of assets fluctuates, therefore a. the value of the assets fluctuates b. stock values fluctuate c. opportunities arise for speculation d. all of the above
- According to ecological economics, natural, human, social and manufactured are varieties of a. markets b. capital c. raw materials d. value
- Which of the following was not a characteristic of global neoliberalism? a. deregulation b. Keynesian demand management c. Schumpeterian workfare state d. competitiveness as an ideology
