Introduction & Macroeconomic Data

Quiz #1 Introduction & Macroeconomic data 18th February 9.00-11.00am

Question 1

Suppose there are 10,000 people in the nation of Tajikistan. Of the people over 15 years of age, 5,800 are employed, 1,800 are unemployed and looking for work and 200 are unemployed and are not looking for work. The unemployment rate in Tajikistan is

Select one:

[pic 1] a. 23.68% [pic 2]

[pic 3] b. 10%

[pic 4] c. 11.1%

[pic 5] d. 17.24%

Question 2

A continuous rise in the price of a single product can be described as inflation. True or False:

Select one:

[pic 6] a. True, any rise in prices can be described as inflation.

[pic 7] b. True, a continuous rise in the price of a single product is considered to be an inflationaly event.

[pic 8] c. False, inflation is characterised by an increase in the general price level. Therefore, a rise in the price of a single product is not enough to be described as inflation.

[pic 9] d. False, inflation is a fall in the general price level

Question 3

A job paid €10,500 in 1980, when the CPI was 60. In 2000, the CPI was 160. How much would you have to earn in 2000 to be making the same real wage?

Select one:

[pic 10] a. €35,062 [pic 11]

[pic 12] b. €28,000

[pic 13] c. €19,375

[pic 14] d. €22,662

Question 4

Only real GDP rises when:Select one:

[pic 15] a. The price of goods and services has increased

[pic 16] b. Both the price and the amount of goods and services produced has increased

[pic 17] c. Neither the price nor the amount of goods and services produced has increased

[pic 18] d. The amount of goods and services produced has increased

Question 5

The unemployment rate is defined as

Select one:

[pic 19] a. The number of unemployed people as a percentage of the population

[pic 20] b. The number of unemployed people as a percentage of the labour force

[pic 21] c. The number of unemployed people as a percentage of the population over 15 years

[pic 22] d. The number of unemployed people as a percentage of the population aged 15- 64 years

Question 6

Which of the following is not an intermediate good?

Select one:

[pic 23] a. Fertilizer purchased by a farmer

[pic 24] b. Petrol purchased by a motorist