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Sumera Nawaz
ECONOMICS
-
Macroeconomics
Which of the following is NOT a component of the expenditure approach to calculating Gross Domestic Product (GDP)?
A. Consumption.
B. Investment.
C. Net exports.
D. All of the above are components of the expenditure approach.
Sumera Nawaz
ECONOMICS
-
Macroeconomics
Which of the following transactions would be included in the calculation of Gross Domestic Product (GDP)?
A. A household purchases a used car from another household.
B. A company produces a new software program for internal use.
C. A government purchases military equipment from a foreign country.
D. A household pays tuition fees for their child's education at a private school.
Sumera Nawaz
ECONOMICS
-
Macroeconomics
If Gross Domestic Product (GDP) is $10 trillion and Gross National Product (GNP) is $11 trillion, what is the value of net factor income from abroad (NFIA)?
A. $1 trillion.
B. -$1 trillion.
C. Insufficient information to determine.
D. $0 trillion.
Sumera Nawaz
ECONOMICS
-
Macroeconomics
Which of the following measures is used to adjust Gross Domestic Product (GDP) for inflation?
A. Real GDP.
B. Nominal GDP.
C. Gross National Product (GNP).
D. Net Domestic Product (NDP).
Sumera Nawaz
ECONOMICS
-
Macroeconomics
Which of the following is NOT included in the calculation of Gross Domestic Product (GDP)?
A. Value of intermediate goods used in production.
B. Transfer payments such as social security benefits.
C. Corporate profits earned by multinational companies headquartered in the country.
D. Government spending on public infrastructure.
Sumera Nawaz
ECONOMICS
-
Microeconomics
If the price elasticity of demand for a good is less than 1, the demand is considered
A. Elastic.
B. Unitary elastic.
C. Inelastic.
D. Perfectly elastic.
Sumera Nawaz
ECONOMICS
-
Microeconomics
Which of the following would lead to a rightward shift of the supply curve?
A. Improvement in technology.
B. Increase in production costs.
C. Increase in the price of a complementary good.
D. Increase in the number of suppliers.
Sumera Nawaz
ECONOMICS
-
Microeconomics
Which of the following is an example of a substitute good?
A. Peanut butter and jelly.
B. Tea and coffee.
C. Butter and margarine.
D. Butter and bread.
Sumera Nawaz
ECONOMICS
-
Microeconomics
If both supply and demand increase but the increase in supply is larger, what will happen to equilibrium price and quantity?
A. Price and quantity will both increase.
B. Price and quantity will both decrease.
C. Price will decrease and quantity will increase.
D. Price will increase and quantity will decrease.
Sumera Nawaz
ECONOMICS
-
Microeconomics
When is the price elasticity of supply perfectly inelastic?
A. When the percentage change in quantity supplied is zero for any change in price.
B. When the quantity supplied is infinitely responsive to changes in price.
C. When the quantity supplied does not change at all in response to a change in price.
D. When the price remains constant regardless of changes in quantity supplied.
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