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Ollscoil na hÉireann, Gaillimh (^) _GX______
National University of Ireland, Galway
Resit Examinations 2009/
Exam Code(s) 1BA1, 1BA11, 1BA6, 1BA7, 1BCS1, 1BCW1, 1BFS1, 1BGL1,1BHR1, 1BIS1, 1BTP1, 1BWM1, 1BWM1, 1EM1, 1OA Exam(s) 1 st^ B.A., 1st^ B.A. (Hist.), 1st^ B.A. (PSP), 1st^ B.A. (Psych.), 1st^ 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. 1 Repeat Paper External Examiner(s) Professor Robert Wright 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 – 40. Duration 2 hours No. of Pages 8 pages in total Department(s) Economics Course Co ordinator(s) T. McDonough Requirements : MCQ Yes Handout Statistical Tables Graph Paper Log Graph Paper
- Individuals are the important actors in which school of economics? a. Neoclassical b. Marxian c. Institutional d. Post Keynesian
- Choice is a behavior associated with a. individuals. b. classes. c. institutions. d. economists.
- In the lecture McDonough argued the relationship between theory and facts is a. dialectical. b. overdetermined. c. tenuous. d. none of the above.
- A set of rules about how the world works plus a set of rules of investigation is a a. institutionalism b. conservative position c. paradigm d. textbook example
- Price is to neoclassical theory what ______ is to Marxian theory. a. class b. profit c. exploitation d. wage labour
- A class society is most precisely one in which a. inequalities exist. b. one group earns more money than another. c. discrimination is practiced. d. one group lives off the labour of another group.
- Consumption plus investment plus government expenditure plus net exports equals a. GDP. b. aggregate supply. c. wages plus interest. d. NDP.
- Nominal GDP is not corrected for a. exports. b. inflation. c. depreciation. d. taxes.
- Erosion control is an example of a. an environmental sink. b. an environmental service. c. an environmental resource. d. an environmental factor included in the GDP.
- Which group does not have generally higher unemployment? a. those who live in Dublin b. the unskilled c. youth d. those who live in the Southwest
- When workers skills do not match those needed for the available jobs the resulting unemployment is called a. frictional. b. structural. c. cyclical. d. none of the above.
- In order to supply more labour, workers must give up a. utility. b. income. c. leisure. d. entrepreurship.
- In the Keynesian model consumption depends primarily on a. custom. b. income. c. utility. d. individual preferences. C = 20 + 7/8 GDP I = 80 G = 100 X = 30 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 10. The new equilibrium will be a. 960 b. 40 c. 950 c. 1920
- Calculate the multiplier for this model. a. 4 b. 8 c. 7 d. 10
- Using the original equilibrium, suppose the full employment level of income is 1040. The government should increase government spending to a. 110 b. 130 c. 140 d. 180
- Repeating a pattern of recession, trough, recovery, peak creates a. Keynesian demand problems. b. unemployment. c. inflation. d. a business cycle.
- In real business cycle theory, expansions can be created through a. expansions of exports. b. recovery from negative shocks. c. positive shocks. d. both b and c.
- Which of the following is not a source of negative shocks? a. increase in the price of raw materials b. bad weather c. introduction of major new products and industries d. introduction of new technology
- Which of the following is not a problem with real business cycle theory? a. The shocks are often unidentified. b. Technology shocks are specific to particular industries. c. It predicts that prices will fall in recessions. d. Weather has been demonstrated to have no effect on the economy.
- Additional GDP demands additional investment is a statement of the a. multiplier principle. b. accelerator principle. c. inflationary gap. d. money illusion.
- Which of the following is not a characteristic of the financial environment according to financial business cycle theory? a. uncertainty b. speculation c. debt finance d. rational markets
The speculator searches for opportunities to a. realize a large income stream. b. invest for the long term. c. buy low and sell high. d. improve business management.
Which of the following is not tracked in the current account balance? a. merchandise trade b. patents and copyrights c. services d. current transfers 3 8. IMF structural adjustment programmes include all of these except a. removal of trade restrictions. b. allowing wages to rise c. restricting the growth of the money supply. d.privatizing state industry
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
