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Ollscoil na hÉireann, Gaillimh (^) _GX______
National University of Ireland, Galway
REPEAT Examinations 2008/
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.), 1 st B.A. (Human Rights), 1 st B.A. (Irish St.), 1 st B.A. (Theatre & Perform.), 1 st 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 Eamon O’Shea 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 Department(s) Economics Course Co-ordinator(s) T. McDonough Requirements : MCQ Yes Handout Statistical Tables Graph Paper Log Graph Paper
Answer all questions (no negative marking). Please use the MCQ answer sheet provided, using lines 1 – 40.
- Economics is the study of the social relations people enter into in the course of producing goods and services and how these social relations change over time. This is the definition of economics according to which school? a. Neoclassical b. Marxian c. Institutional d. Keynesian
- 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
- Economics is the study of the social relations people enter into in the course of producing goods and services and how these social relations change over time. In this definition “people” refers to a. classes b. individuals c. households d. ethnic groups
- The main relationships are contractual in which school? a. Neoclassical b. Marxian c. Institutional d. Keynesian
- In the lecture McDonough argued the relationship between economics and political policy is a. dialectical b. overdetermined c. tenuous d. none of the above
b. immigrants c. service sector employees d. women
- The Genuine Progress Indicator a. tracks the GDP closely b. is generally above the GDP c. is generally below the GDP d. cycles around the GDP
- For which of the following is the costs of unemployment not higher than average a. the unskilled b. men c. youth d. Dublin
- In the neoclassical theory the demand for labour is derived from a. the supply of labour b. utility of leisure c. the demand for the products it produces d. the profits it can produce
- Where the wage rate is above equilibrium a. the supply of labour exceeds the demand for labour b. unemployment exists c. the demand for labour exceeds the supply of labour d. both a and b
- In Keynesian theory consumption depends on a. income b. consumer preferences c. policy interventions d. none of the above
- Which of the following does not cause a shift of the consumption functions (as opposed to a shift along the function)? a. a change in disposable income b. a change in expected future income c. a change in stage in life d. a change in the interest rate
- If the accelerator principle is applied a. aggregate expenditure slopes up b. government expenditure is positively related to GDP c. saving is dependent on income d. investment is positively related to GDP C = 20 + 7/8 GDP I = 80 G = 100 X = 20 M = 1/8 GDP
- What is the equilibrium level of income in this model? a. 880 b. 1760 c. 220 d. 440
- Suppose autonomous consumption rises by 10. The new equilibrium will be a. 920 b. 40 c. 2300 d. 450
- 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 960. The government should increase government spending to a. 110 b. 120 c. 140 d. 180
- Raising the supply of money would be a response to a. unemployment b. inflation
a. the aggregate demand curve slopes down b. the aggregate supply curve slopes up c. the aggregate demand curve slopes up d. equilibrium exists where aggregate demand intersects aggregate supply
- Increasing the quantity of money a. shifts aggregate demand out b. shifts aggregate demand in c. shifts aggregate supply out d. makes aggregate supply vertical
- The velocity of money is a. its purchasing power b. the rate it changes hands c. the rate it is printed by the government d. the rate at which it is loaned by the banking system
- A change in which of the following is particularly relevant to real business cycle theory? a. size of the labour force b. size of the capital stock c. human capital (skills) d. price of raw materials
- The interaction of the multiplier and the accelerator creates a. inflation b. growth c. the business cycle d. stagnation
- The financial environment is characterized by a. uncertainty b. speculation c. debt finance d. all of the above
- According to the Marxian theory, which of the following rises during the downturn? a. wages b. effort
c. interest rates d. raw materials prices
- Which of the following would not be recommended by an IMF structural adjustment programme? a. remove all trade restrictions b. eliminate food subsidies c. allow wages to fall d. decrease domestic interest rates
- 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
