# Each correct answer will score one mark. A mark will not be deducted for a wrong answer. Any rough working should be done in this booklet.

Save this PDF as:

Size: px
Start display at page:

Download "Each correct answer will score one mark. A mark will not be deducted for a wrong answer. Any rough working should be done in this booklet."

## Transcription

1 * * ambridge International Examinations ambridge International dvanced Level ENMIS 9708/33 Paper 3 Multiple hoice (Supplement) May/June 2014 dditional Materials: Multiple hoice nswer Sheet Soft clean eraser Soft pencil (type or H is recommended) 1 hour RE THESE INSTRUTINS FIRST Write in soft pencil. o not use staples, paper clips, glue or correction fluid. Write your name, entre number and candidate number on the nswer Sheet in the spaces provided unless this has been done for you. NT WRITE IN NY RES. There are thirty questions on this paper. nswer all questions. For each question there are four possible answers,, and. hoose the one you consider correct and record your choice in soft pencil on the separate nswer Sheet. Read the instructions on the nswer Sheet very carefully. Each correct answer will score one mark. mark will not be deducted for a wrong answer. ny rough working should be done in this booklet. This document consists of 14 printed pages and 2 blank pages. I14 06_9708_33/RP R ULES 2014 [Turn over

2 1 In the diagram, LM is an economy s production possibility curve. 2 L E good X F G H good Y M Which statement is correct? E only is attainable. F is economically efficient. G may be economically efficient but is not productively efficient. H is productively efficient but may not be economically efficient. 2 consumer seeks to maximise his utility. Up to what point should he continue to consume each good? until the marginal utility per dollar from each good is the same until the marginal utility from each good is the same until the marginal utility from each good reaches a maximum until the marginal utility from each good is zero ULES /33/M/J/14

3 3 In the diagram a consumer s initial budget line is GH. 3 G J quantity of good Y H K quantity of good X ssuming no change in the price of X, what could explain a shift in the consumer s budget line to JK? price of good Y consumer s money income decrease decrease decrease increase increase decrease increase increase 4 The diagram shows the demand curve for labour. money wage rate number employed What could cause the demand curve to shift to the right? a decrease in labour productivity an increase in immigration an increase in the average price level a fall in the money wage rate ULES /33/M/J/14 [Turn over

4 5 firm currently employs 100 workers at a daily wage rate of \$500 per worker. It calculates that the marginal cost per day of hiring an additional worker would be \$ y how much would the daily wage rate per worker have to be increased to attract an extra worker? \$2 \$70.20 \$202 \$702 6 trade union seeks to increase the wages that a firm pays to its workers while at the same time avoiding any job losses. What will weaken the union s negotiating position? apital and labour are close substitutes. The firm enjoys monopsony power in a labour market. The demand for the good produced by the firm is price-inelastic. The supply of labour to the firm is highly inelastic. 7 firm employs two factors of production, capital and labour. The curves in the diagram show the different combinations of capital and labour a firm needs to produce given levels of output. capital Q = 300 units Q = 200 units Q = 100 units labour What does the diagram show? the firm s long-run production function the firm s long-run total cost function the firm s short-run production function the firm s short-run total cost function ULES /33/M/J/14

5 5 8 What will be the effect on price and output of a subsidy on each item produced by a profit maximising monopolist? effect on price effect on output decrease increase decrease unchanged unchanged increase unchanged unchanged 9 The diagram shows the short-run cost curves of a firm. costs Which statement is correct? output 1 urve 1 is the marginal cost curve. urve 2 is the average variable cost curve. urve 3 is the average fixed cost curve. urve 4 is the average total cost curve. ULES /33/M/J/14 [Turn over

6 10 The diagram shows a firm s demand curve and its marginal revenue curve. 6 price P MR quantity What is the approximate price elasticity of demand at price P? What determines the contestability of a market? the costs of entry and exit the degree of differentiation of the product the number of firms in the industry the price elasticity of demand for the product ULES /33/M/J/14

7 7 12 The diagram shows the change in an industry s cost of production when it moves from perfect competition to monopoly. There is no change in the demand for the industry s product. price M (perfect competition) M (monopoly) MR output What effect will the change in market structure in this industry have on price, output and consumer surplus? price output consumer surplus increase increase reduce increase reduce reduce reduce increase increase reduce reduce increase 13 firm decides to maximise sales revenue rather than profits. What is likely to be one of the consequences of this decision? an increase in the price of the firm s product a reduction in the price of the firm s shares a reduction in the firm s market share a reduction in the number employed by the firm ULES /33/M/J/14 [Turn over

8 14 The diagram shows the cost and revenue curves of a profit-maximising monopolist. 8 M costs, revenue x y z w R MR output Which area measures the deadweight loss arising from the exercise of monopoly power? x + y y y + z w + z 15 Income inequality can be measured by the Gini coefficient. n a scale of 0 to 100, the higher the value the greater the inequality. The table below shows three Gini coefficient values for four E countries. The first is from wages, the second when government welfare payments are included and the third when welfare payments and government health and education spending are included. In which country did welfare payments make the greatest contribution to income redistribution? inequality after wages from work inequality after wages and welfare payments inequality after wages, welfare payments and health and education spending ULES /33/M/J/14

9 16 What is an advantage of means-tested benefits over universal benefits? 9 an increase in the percentage of those who take up benefits for which they are eligible a reduction in the rate at which benefits are withdrawn as households incomes increase a reduction in the poverty trap the targeting of benefits on those in greatest need 17 monopolist has a marginal revenue curve shown in the diagram by RTVX. R price S T U V R W X quantity What will be the monopolist s new marginal revenue curve if the government introduces a maximum price, S? RTVW RUVX STVX SUVX 18 The information in the table is taken from a country s national income accounts. \$ million national income 1000 consumer spending 750 investment spending 100 government spending on goods and services 170 taxation 110 imports 120 What is the value of exports? \$100 million \$120 million \$190 million \$210 million ULES /33/M/J/14 [Turn over

10 19 The table shows a government s expenditure and its tax revenues over the period government expenditure (\$ billion) government tax revenue (\$ billion) What impact did the changes in the government s fiscal balance have on the national debt and on aggregate expenditure? impact on national debt impact on aggregate expenditure no change no change increase raise decrease lower increase raise 20 What is not a leakage from the circular flow of income? expenditure on foreign goods indirect taxes undistributed profits unemployment benefits 21 In a closed economy with no government, an increase in investment of \$100 million results in an increase in consumption of \$300 million. What is the marginal propensity to consume? ULES /33/M/J/14

11 11 22 government increases the rate of unemployment benefit. Which diagram shows the resulting shift (from 1 to 2 ) in the consumption function? consumption consumption national income national income consumption consumption national income national income 23 ssuming a constant income velocity of circulation of money, if real output grows by 2%, and the rate of growth of the money supply is 5%, what will be the approximate change in the price level? 3% +3% +5% +7% ULES /33/M/J/14 [Turn over

12 12 24 The diagram shows three different levels of the supply of money (MS) and three liquidity preference demand for money curves (LP). The initial equilibrium is at point X. There is a decrease in the level of money income and at the same time there is an expansion in bank credit. Which point could be the new equilibrium point? rate of interest X LP 3 LP 1 LP 2 MS 2 MS 1 quantity of money MS 3 ULES /33/M/J/14

13 13 25 The graph shows the changes (expressed as an index) in employment and in GP in the United Kingdom between 2008 and key GP full time part time temporary Q1 Q2 Q3 Q Q1 Q2 Q3 Q Q1 Q2 Q3 Q Q1 Q2 Q3 Q Q1 What can be concluded from the graph? The number in full-time jobs as a percentage of total employment fell over the period. The total number in employment increased over the period. There was a fall in the number unemployed over the period. There was an increase in GP per worker over the period. 26 What is usually a characteristic of low income developing countries? an absence of government intervention in the economy low birth rates low tertiary sector output as a percentage of GP zero tariffs on imports 27 Which combination of fiscal and monetary policy could be used to reduce both the level of unemployment and the government budget deficit in an economy? fiscal policy monetary policy contractionary expansionary contractionary unchanged expansionary contractionary unchanged contractionary ULES /33/M/J/14 [Turn over

14 28 What is likely to result from foreign direct investment in developing economies? 14 a reduction in local wage levels a reduction in tax revenues in developing economies a reduction in the range of consumer goods available to the local population a worsening of net income flows from investments 29 Which combination of changes is most likely to result in the short run in a fall in a country s inflation rate? exchange rate indirect taxes higher higher higher lower lower higher lower lower 30 country has a fixed exchange rate. Which combination of circumstances would be most likely to cause the country s government to reduce taxation and lower interest rates? demand inflation and a balance of payments deficit demand inflation and low investment unemployment and a balance of payments surplus unemployment and imported inflation ULES /33/M/J/14

15 15 LNK PGE ULES /33/M/J/14

16 16 LNK PGE opyright cknowledgements: Question 25 UK ffice of National Statistics. Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (ULES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. ambridge International Examinations is part of the ambridge ssessment Group. ambridge ssessment is the brand name of University of ambridge Local Examinations Syndicate (ULES), which is itself a department of the University of ambridge. ULES /33/M/J/14

*2086387584* ambridge International Examinations ambridge International dvanced Subsidiary and dvanced Level EONOMIS 9708/13 Paper 1 Multiple hoice (ore) May/June 2014 dditional Materials: Multiple hoice

### Soft clean eraser Soft pencil (type B or HB is recommended)

*6337308057* ambridge International Examinations ambridge Ordinary Level EONOMIS 2281/11 Paper 1 Multiple hoice May/June 2014 dditional Materials: Multiple hoice nswer Sheet Soft clean eraser Soft pencil

*5180729136* ambridge International Examinations ambridge International dvanced Subsidiary and dvanced Level OUNTING 9706/11 Paper 1 Multiple hoice May/June 2014 dditional Materials: Multiple hoice nswer

ambridge International Examinations ambridge International dvanced Subsidiary and dvanced Level OUNTING 9706/01 Paper 1 Multiple hoice For Examination from 2016 SPEIMEN PPER 1 hour *0123456789* dditional

### Economics. Total marks 100

2012 HIGHER SCHOOL CERTIFICATE EXAMINATION Economics Total marks 100 Section I Pages 2 8 20 marks Attempt Questions 1 20 Allow about 35 minutes for this section General Instructions Reading time 5 minutes

### UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education

UNIVERSITY OF MRIGE INTERNTIONL EXMINTIONS International General ertificate of Secondary Education EONOMIS 0455/01 Paper 1 Multiple hoice For Examination from 2014 SPEIMEN PPER dditional Materials: Multiple

### Cambridge International Examinations Cambridge International General Certificate of Secondary Education

Cambridge International Examinations Cambridge International General Certificate of Secondary Education ECONOMICS 0455/22 Paper 2 Structured Questions May/June 2015 2 hours 15 minutes No Additional Materials

### Economics. Total marks 100. Section I Pages marks Attempt Questions 1 20 Allow about 35 minutes for this section

2011 HIGHER SCHOOL CERTIFICATE EXAMINATION Economics Total marks 100 Section I Pages 2 8 General Instructions Reading time 5 minutes Working time 3 hours Write using black or blue pen Black pen is preferred

### UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education ACCOUNTING

UNIVERSITY OF MRIGE INTERNTIONL EXMINTIONS International General ertificate of Secondary Education OUNTING 0452/01 Paper 1 Multiple hoice May/June 2006 dditional Materials: Multiple hoice nswer Sheet Soft

### Ec1 ECONOMICS PAPER 1. INSTRUCTIONS TO CANDIDATES: (To be read out by the external invigilator before the start of the examination)

INSTRUCTIONS TO CANDIDATES: (To be read out by the external invigilator before the start of the examination) DEPARTMENT OF EDUCATION HIGHER SCHOOL CERTIFICATE EXAMINATIONS ECONOMICS PAPER 1 Monday 23 October

### COMMERCE 7100/13 Paper 1 Multiple Choice May/June hour

*4044500977* ambridge International Examinations ambridge Ordinary Level OMMERE 7100/13 Paper 1 Multiple hoice May/June 2014 1 hour dditional Materials: Multiple hoice nswer Sheet dditional Materials:

### 1. Circular flow of income

1. Circular flow of income The circular flow of income Firms and households interact and exchange resources in an economy. Households supply firms with the factors of production, such as labour and capital,

### The Circular Flow of Income and Expenditure

The Circular Flow of Income and Expenditure Imports HOUSEHOLDS Savings Taxation Govt Exp OTHER ECONOMIES GOVERNMENT FINANCIAL INSTITUTIONS Factor Incomes Taxation Govt Exp Consumer Exp Exports FIRMS Capital

### UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education ACCOUNTING

www.xtremepapers.com UNIVERSITY OF MRIGE INTERNTIONL EXMINTIONS International General ertificate of Secondary Education OUNTING 0452/01 Paper 1 Multiple hoice May/June 2005 dditional Materials: Multiple

### Practiced Questions. Chapter 20

Practiced Questions Chapter 20 1. The model of aggregate demand and aggregate supply a. is different from the model of supply and demand for a particular market, in that we cannot focus on the substitution

### The Full-Employment Model. Stiglitz, Walsh (2006) Economics Chapter 24 (MA6)

The Full-Employment Model Stiglitz, Walsh (2006) Economics Chapter 24 (MA6) Macroeconomic Equilibrium all markets are interrelated what happens in one market will have impact on other markets wages, interest

### There are 10 Internal Credits AS 91401 V1 (3.3) 5 credits: Elasticity & micro-economic concepts Literacy

Year 13 Economics Course Outline This course will cover the micro-economic issues of Market efficiency, Elasticity, Government intervention, Market failure and macroeconomic Influences on NZ economy. There

### Principles of Macroeconomics Prof. Yamin Ahmad ECON 202 Fall 2004

Principles of Macroeconomics Prof. Yamin Ahmad ECON 202 Fall 2004 Sample Final Exam Name Id # Part B Instructions: Please answer in the space provided and circle your answer on the question paper as well.

### How Wages Are Determined in Labor Markets

ACTIVITY 4-5 How Wages Are Determined in Labor Markets This activity examines how wages and employment are determined in two types of labor s. A perfectly competitive labor is one in which all buyers and

### ASSIGNMENT 1 ST SEMESTER : MACROECONOMICS (MAC) ECONOMICS 1 (ECO101) STUDY UNITS COVERED : STUDY UNITS 1 AND 2. DUE DATE : 3:00 p.m.

Page 1 of 13 ASSIGNMENT 1 ST SEMESTER : MACROECONOMICS (MAC) ECONOMICS 1 (ECO101) STUDY UNITS COVERED : STUDY UNITS 1 AND 2 DUE DATE : 3:00 p.m. 19 MARCH 2013 TOTAL MARKS : 100 INSTRUCTIONS TO CANDIDATES

### UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS General Certificate of Education Ordinary Level

*9935248345* UNIVERSITY OF MRIGE INTERNTIONL EXMINTIONS General ertificate of Education Ordinary Level OMMERE 7100/12 Paper 1 Multiple hoice May/June 2013 1 hour dditional Materials: Multiple hoice nswer

### General Certificate of Education Advanced Subsidiary Examination January 2013

General ertificate of Education dvanced Subsidiary Examination January 2013 Economics EON2 Unit 2 The National Economy Monday 28 January 2013 1.30 pm to 2.45 pm For this paper you must have: an objective

### MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Sample Questions for Chapters 12 & 13 Inflation Unemployment & Business Cycles Fiscal Policy MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Inflation

### Learner Guide. Cambridge IGCSE Economics

Learner Guide Cambridge IGCSE Economics 0455 Cambridge International Examinations retains the copyright on all its publications. Registered Centres are permitted to copy material from this booklet for

### 2013 Economics. Intermediate 2. Finalised Marking Instructions

2013 Economics Intermediate 2 Finalised ing Instructions Scottish Qualifications Authority 2013 The information in this publication may be reproduced to support SQA qualifications only on a non-commercial

### Wednesday 22 May 2013 Afternoon

Wednesday 22 May 2013 Afternoon GCSE ECONOMICS A591/02 How the Market Works *A530150613* Candidates answer on the Question Paper. OCR supplied materials: None Other materials required: Calculators may

### S.Y.B.COM. (SEM-III) ECONOMICS

Fill in the Blanks. Module 1 S.Y.B.COM. (SEM-III) ECONOMICS 1. The continuous flow of money and goods and services between firms and households is called the Circular Flow. 2. Saving constitute a leakage

### a) Aggregate Demand (AD) and Aggregate Supply (AS) analysis

a) Aggregate Demand (AD) and Aggregate Supply (AS) analysis Determinants of AD: Aggregate demand is the total demand in the economy. It measures spending on goods and services by consumers, firms, the

### SAMPLE COURSE OUTLINE ECONOMICS ATAR YEAR 11

SAMPLE COURSE OUTLINE ECONOMICS ATAR YEAR 11 Copyright School Curriculum and Standards Authority, 2014 This document apart from any third party copyright material contained in it may be freely copied,

### Economics 1012A Introduction to Macroeconomics Fall 2008 Dr. R. E. Mueller Second Midterm Examination October 17, 2008

Economics 1012A Introduction to Macroeconomics Fall 2008 Dr. R. E. Mueller Second Midterm Examination October 17, 2008 Answer all of the following questions by selecting the most appropriate answer on

### ECF1100 Microeconomics

ECF1100 Microeconomics Semester 2, 2015 Notes Textbook: Gans, King, Byford and Mankiw, Principles of Microeconomics 6th Edition, Cengage Learning, Copyright 2015 (ISBN 9780170248525). Contents Week 1 Introduction

### EXAM PREPARATION AND 2014 HSC QUESTIONS

EXAM PREPARATION AND 2014 HSC QUESTIONS TIM RILEY The HSC Examination The HSC Economics Syllabus Exam Preparation and 2014 Questions HSC ECONOMICS EXAMINATION 2015 The Exam Tests Syllabus Knowledge and

### 3 Macroeconomics LESSON 8

3 Macroeconomics LESSON 8 Fiscal Policy Introduction and Description Fiscal policy is one of the two demand management policies available to policy makers. Government expenditures and the level and type

### UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS General Certificate of Education Advanced Level

*3530169038* UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS General Certificate of Education Advanced Level ACCOUNTING 9706/43 Paper 4 Problem Solving (Supplementary Topics) October/November 2012 2

### Cambridge International Examinations Cambridge International Advanced Subsidiary and Advanced Level. Paper 1 May/June 2014 1 hour 15 minutes

*99598998* Cambridge International Examinations Cambridge International Advanced Subsidiary and Advanced Level APPLIED INFORMATION AND COMMUNICATION TECHNOLOGY 973/ Paper May/June 04 hour 5 minutes Candidates

### Economics 100 Quiz 1 Fall The fundamental economic problem faced by all societies is: a. unemployment c. poverty b. inequality d.

Economics 100 Quiz 1 Fall 2000 1. The fundamental economic problem faced by all societies is: a. unemployment c. poverty b. inequality d. scarcity 2. "Capitalism" refers to: a. the use of markets c. private

### Microeconomics Required Graphs and Terms

Microeconomics Required Graphs and Terms Understanding and explaining the economic concepts required by the AP and IB exams rests on a solid knowledge of fundamental economic graphs and terms. In order

### General Certificate of Education Advanced Subsidiary Examination June 2013

General ertificate of Education dvanced Subsidiary Examination June 2013 Economics EON2 Unit 2 The National Economy Friday 17 May 2013 1.30 pm to 2.45 pm For this paper you must have: an objective test

### 2 0 0 0 E D I T I O N CLEP O F F I C I A L S T U D Y G U I D E. The College Board. College Level Examination Program

2 0 0 0 E D I T I O N CLEP O F F I C I A L S T U D Y G U I D E College Level Examination Program The College Board Principles of Macroeconomics Description of the Examination The Subject Examination in

### Paper 3 May/June hour 15 minutes

*877584* Cambridge International Examinations Cambridge International Advanced Level APPLIED INFORMATION AND COMMUNICATION TECHNOLOGY 97/ Paper May/June 04 hour 5 minutes Candidates answer on the Question

### Institute of Actuaries of India

Institute of Actuaries of India Subject CT7 Business Economics November 2012 Examinations INDICATIVE SOLUTIONS Introduction The indicative solution has been written by the Examiners with the aim of helping

### FISCAL POLICY* Chapter. The Federal Budget. goods and services. goods and services, the value of transfer payments,

Chapter 15 FISCAL POLICY* The Federal Budget Topic: The Federal Budget 1) Which of the following is considered a purpose of the federal budget? I. To help the economy achieve full employment. II. To finance

### EC2105, Professor Laury EXAM 2, FORM A (3/13/02)

EC2105, Professor Laury EXAM 2, FORM A (3/13/02) Print Your Name: ID Number: Multiple Choice (32 questions, 2.5 points each; 80 points total). Clearly indicate (by circling) the ONE BEST response to each

### Chapter 11 Keynesianism: The Macroeconomics of Wage and Price Rigidity

Chapter 11 Keynesianism: The Macroeconomics of Wage and Price Rigidity Multiple Choice Questions 1. Keynesians are skeptical of the classical theory that recessions are periods of increased mismatch between

### WEDNESDAY, 28 MAY 9.00 AM AM. INSTRUCTIONS TO CANDIDATES Candidates must attempt both items in Section A and any two questions in Section B.

X08//0 NATIONAL QUALIFICATIONS 0 WEDNESDAY, 8 MAY 9.00 AM.0 AM ECONOMICS HIGHER INSTRUCTIONS TO CANDIDATES Candidates must attempt both items in Section A and any two questions in Section B. LI *X08//0*

### Thinkwell s Homeschool Economics Course Lesson Plan: 36 weeks

Thinkwell s Homeschool Economics Course Lesson Plan: 36 weeks Welcome to Thinkwell s Homeschool Economics! We re thrilled that you ve decided to make us part of your homeschool curriculum. This lesson

### Letter STUDENT NUMBER ECONOMICS. Written examination. Thursday 30 October 2014

Victorian Certif cate of Education 2014 SUPERVISOR TO ATTACH PROCESSING LABEL HERE Letter STUDENT NUMBER ECONOMICS Written examination Thursday 30 October 2014 Reading time: 3.00 pm to 3.15 pm (15 minutes)

### BADM 527, Fall 2013. Midterm Exam 2. Multiple Choice: 3 points each. Answer the questions on the separate bubble sheet. NAME

BADM 527, Fall 2013 Name: Midterm Exam 2 November 7, 2013 Multiple Choice: 3 points each. Answer the questions on the separate bubble sheet. NAME 1. According to classical theory, national income (Real

### QUESTION BANK IN ECONOMICS FOR THE REFERENCE OF F.Y.B.COM, F.Y.B.A. AND S.Y.B.COM STUDENTS

QUESTION BANK IN ECONOMICS FOR THE REFERENCE OF F.Y.B.COM, F.Y.B.A. AND S.Y.B.COM STUDENTS Module 1 F.Y.B.Com Business Economics I (Revised Syllabus) Section I a) Demand function b) Elasticity of demand

### AP Macroeconomics. Practice Exam. Advanced Placement Program

Advanced Placement Program AP Macroeconomics Practice Exam The questions contained in this AP Macroeconomics Practice Exam are written to the content specifications of AP Exams for this subject. Taking

### 2. a. The IS curve is found from the equation Y = Cd + P + G = (Y - 100) - 500r r+ 100, or 0.5Y = r, or Y = r.

Chapter 11 Numerical Problems 1. The following table shows the real wage (w), the effort level (E), and the effort per unit of real wages (E / w). w E E/w 8 7 0.875 10 10 1.00 12 15 1.25 14 17 1.21 16

### ECN 106 Macroeconomics 1. Lecture 6

ECN 106 Macroeconomics 1 Lecture 6 Giulio Fella c Giulio Fella, 12 ECN 106 Macroeconomics 1 - Lecture 6 140/311 Roadmap for this lecture Policy implications of the long-run model Macroeconomic stylized

### Econ 102 Homework #9 AD/AS and The Phillips Curve

Econ 102 Homework #9 D/S and The Phillips Curve 1. s on previous homework assignments, turn in a news article together with your summary and explanation of why it is relevant to this week s topic, D/S

### The Aggregate Demand- Aggregate Supply (AD-AS) Model

The AD-AS Model The Aggregate Demand- Aggregate Supply (AD-AS) Model Chapter 9 The AD-AS Model addresses two deficiencies of the AE Model: No explicit modeling of aggregate supply. Fixed price level. 2

### 0 100 200 300 Real income (Y)

Lecture 11-1 6.1 The open economy, the multiplier, and the IS curve Assume that the economy is either closed (no foreign trade) or open. Assume that the exchange rates are either fixed or flexible. Assume

### University of Toronto February 18, ECO 100Y INTRODUCTION TO ECONOMICS Midterm Test # 3

Department of Economics Prof. Gustavo Indart University of Toronto February 18, 2011 SOLUTIONS ECO 100Y INTRODUCTION TO ECONOMICS Midterm Test # 3 LAST NAME FIRST NAME STUDENT NUMBER INSTRUCTIONS: 1. The

### Cambridge International Examinations Cambridge Secondary 1 Checkpoint

ambridge International Examinations ambridge Secondary 1 heckpoint NDIDTE NME ENTRE NUMER NDIDTE NUMER ENGLISH S SEOND LNGUGE Paper 3 Listening SPEIMEN PPER 1110/03 For Examination from 2015 approximately

### The Economic Environment for Business

B. FINANCIAL MANAGEMENT ENVIRONMENT 1. The economic environment for business 2. The nature and role of financial markets and institutions The Economic Environment for Business What are the targets of macroeconomic

### PBL: Economic Analysis & Decision Making. Competency: Comparative Economic Systems. Competency: History of Economic Thought

Competency: Comparative Economic Systems 1. Use basic economic concepts (e.g., supply and demand; production, distribution, and consumption; labor, wages, and capital; inflation and deflation; market economy

### 2.5 Monetary policy: Interest rates

2.5 Monetary policy: Interest rates Learning Outcomes Describe the role of central banks as regulators of commercial banks and bankers to governments. Explain that central banks are usually made responsible

### Economics 3422 Sample Final Examination

Economics 3422 Sample Final Examination Instructions: Put your name and PeopleSoft ID on the blue book provided. Put all your answers in the blue book provided. Turn both question sheet and blue book in

### Extra Problems #3. ECON 410.502 Macroeconomic Theory Spring 2010 Instructor: Guangyi Ma. Notice:

ECON 410.502 Macroeconomic Theory Spring 2010 Instructor: Guangyi Ma Extra Problems #3 Notice: (1) There are 25 multiple-choice problems covering Chapter 6, 9, 10, 11. These problems are not homework and

### Economics Macroeconomic Theory

Economics 202.04 Macroeconomic Theory Spring 2003 Mid-Term Exam, 27 February 2003 Please answer FIVE QUESTIONS FROM SECTION A and TWO QUESTIONS FROM SECTION B. SECTION A and B each carry 50% of the marks.

### 6 AGGREGATE SUPPLY AND AGGREGATE DEMAND* Chapter. Key Concepts

Chapter 6 AGGREGATE SUPPLY AND AGGREGATE DEMAND* Key Concepts Aggregate Supply The aggregate production function shows that the quantity of real GDP (Y ) supplied depends on the quantity of labor (L ),

### Exam practice: paper 1 (SL and HL)

Exam practice: paper 1 (SL and HL) Introduction to paper 1 Paper 1 has the same structure for both standard and higher levels. Paper 1: SL and HL Duration of paper 1 Focus and structure of paper 1 1 hour

### AGGREGATE DEMAND AND AGGREGATE SUPPLY The Influence of Monetary and Fiscal Policy on Aggregate Demand

AGGREGATE DEMAND AND AGGREGATE SUPPLY The Influence of Monetary and Fiscal Policy on Aggregate Demand Suppose that the economy is undergoing a recession because of a fall in aggregate demand. a. Using

### Demand Equilibrium price Consumer sovereignty Elasticity Shortage Surplus

Social Studies AP Economics STANDARD SKILLS and CONCEPTS VOCABULARY Standard 1: Scarcity and Economic Reasoning Students will understand that productive resources are limited; therefore, people, institutions

### Name: Date: 3. Variables that a model tries to explain are called: A. endogenous. B. exogenous. C. market clearing. D. fixed.

Name: Date: 1 A measure of how fast prices are rising is called the: A growth rate of real GDP B inflation rate C unemployment rate D market-clearing rate 2 Compared with a recession, real GDP during a

### Coimisiún na Scrúduithe Stáit State Examinations Commission. ECONOMICS - HIGHER LEVEL (400 marks)

WARNING 2008. M59 This Question Paper MUST be returned with your answer book(s) at the end of the Examination, otherwise marks will be lost. Write your Examination Number here Coimisiún na Scrúduithe Stáit

### COST OF PRODUCTION & THEORY OF THE FIRM

MICROECONOMICS: UNIT III COST OF PRODUCTION & THEORY OF THE FIRM (C) positive and \$0 positive. At zero output, variable costs are zero. 2. Based on the information in the table above, the total cost of

### Economics 152 Solution to Sample Midterm 2

Economics 152 Solution to Sample Midterm 2 N. Das PART 1 (84 POINTS): Answer the following 28 multiple choice questions on the scan sheet. Each question is worth 3 points. 1. If Congress passes legislation

### Rutgers University School of Business Aggregate Economics Fall 2010

Rutgers University School of Business Aggregate Economics Fall 2010 Professor: Dr. Davood Taree Email: dtaree@rbs.rutgers.edu Office hours: Thursday: By appointment Course Information: Course Number: 591:41

### THE OPEN AGGREGATE DEMAND AGGREGATE SUPPLY MODEL.

THE OPEN AGGREGATE DEMAND AGGREGATE SUPPLY MODEL. Introduction. This model represents the workings of the economy as the interaction between two curves: - The AD curve, showing the relationship between

### Introduction to Macroeconomics 1012 Final Exam Spring 2013 Instructor: Elsie Sawatzky

Introduction to Macroeconomics 1012 Final Exam Spring 2013 Instructor: Elsie Sawatzky Name Time: 2 hours Marks: 80 Multiple choice questions 1 mark each and a choice of 2 out of 3 short answer question

### Econ 202 Final Exam. Douglas, Spring 2010 May 6, 2010 PLEDGE: I have neither given nor received unauthorized help on this exam.

, Spring 2010 May 6, 2010 PLEDGE: I have neither given nor received unauthorized help on this exam. SIGNED: PRINT NAME: Econ 202 Final Exam Multiple Choice. 2 points each. 1. According to the long-run

### MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Inflation can be started by 1) A) an increase in aggregate supply or a decrease in aggregate

Cambridge International Examinations Cambridge International Advanced Subsidiary and Advanced Level *0123456789* ACCOUNTING 9706/02 Paper 2 Structured Questions For Examination from 2016 SPECIMEN PAPER

### University of Lethbridge Department of Economics ECON 1012 Introduction to Microeconomics Instructor: Michael G. Lanyi. Chapter 29 Fiscal Policy

University of Lethbridge Department of Economics ECON 1012 Introduction to Microeconomics Instructor: Michael G. Lanyi Chapter 29 Fiscal Policy 1) If revenues exceed outlays, the government's budget balance

### . consumption and investment spending.

Chapter 10 1. The aggregate demand curve: A. is upward sloping because a higher price level is necessary to make production profitable as production costs rise. B. is downward sloping because production

### 2012 Economics. Intermediate 2. Finalised Marking Instructions

2012 Economics Intermediate 2 Finalised Marking Instructions Scottish Qualifications Authority 2012 The information in this publication may be reproduced to support SQA qualifications only on a non-commercial

### Use the following to answer question 9: Exhibit: Keynesian Cross

1. Leading economic indicators are: A) the most popular economic statistics. B) data that are used to construct the consumer price index and the unemployment rate. C) variables that tend to fluctuate in

### Wednesday 28 January 2015 Morning Time: 2 hours 30 minutes

Write your name here Surname Other names Pearson Edexcel International GCSE Economics Paper 1 Centre Number Candidate Number Wednesday 28 January 2015 Morning Time: 2 hours 30 minutes You do not need any

### Paper 3 (HL) markschemes

Paper 3 (HL) markschemes Microeconomics Chapter 2 Competitive markets: demand and supply Question 1 (a) See textbook, page 33. (b) See textbook, page 33. (c) We can solve the equation to find any two points,

### Macroeconomics Instructor Miller Fiscal Policy Practice Problems

Macroeconomics Instructor Miller Fiscal Policy Practice Problems 1. Fiscal policy refers to changes in A) state and local taxes and purchases that are intended to achieve macroeconomic policy objectives.

### Review for the Midterm Exam.

Review for the Midterm Exam. 1. Chapter 1 The principles of decision making are: o People face tradeoffs. o The cost of any action is measured in terms of foregone opportunities. o Rational people make

### a) Types of policy: fiscal policy, monetary policy and supplyside

a) Types of policy: fiscal policy, monetary policy and supplyside policy Fiscal policy Fiscal policy uses government spending and revenues from taxation to influence AD. This is conducted by the government.

### MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Econ 111 Summer 2007 Final Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The classical dichotomy allows us to explore economic growth

### ECO 100Y INTRODUCTION TO ECONOMICS Term Test # 3

Department of Economics Prof. Gustavo Indart University of Toronto February 15, 2013 ECO 100Y INTRODUCTION TO ECONOMICS Term Test # 3 LAST NAME FIRST NAME STUDENT NUMBER INSTRUCTIONS: 1. The total time

### Macroeconomics Machine-graded Assessment Items Module: Fiscal Policy

Macroeconomics Machine-graded Assessment Items Module: Fiscal Policy Machine-graded assessment question pools are provided for your reference and are organized by learning outcome. It is your responsibility

### * * * 8 NATIONAL INCOME. Unit 1 : National Income Analysis

8 NATIONAL INCOME Macro / Topic 8-1 / P. 1 Unit 1 : National Income Analysis I Concepts and Meaning ( Definition ) II Approaches and Formulae III Measurement of GNP IV Economic Analysis of GNP National

### A. a change in demand. B. a change in quantity demanded. C. a change in quantity supplied. D. unit elasticity. E. a change in average variable cost.

1. The supply of gasoline changes, causing the price of gasoline to change. The resulting movement from one point to another along the demand curve for gasoline is called A. a change in demand. B. a change

### PBL: MICROECONOMICS. Competency: Capital and Natural Resource Markets

Competency: Capital and Natural Resource Markets 1. Describe how firms determine the quantity of resources to use and what determines resource supply in competitive markets and imperfectly competitive

### Is the Australian economy heading for a severe recession? If so, what (if anything) can policy makers do about it?

Is the Australian economy heading for a severe recession? If so, what (if anything) can policy makers do about it? Christopher M. Fleming Department of Accounting, Finance and Economics GriffithBUSINESS

### Good Luck writing the Mock Exam!!

PASS MOCK EXAM FOR PRACTICE ONLY Course: ECON 1000 B Facilitator: Ben Dates and locations of mock exam take up: FRIDAY DECEMBER 11: 10 12 ME 3380 1 3 ME 3380 It is most beneficial to you to write this

### The Labour Market: Demand and Supply

The Labour Market: Demand and Supply Learning Objectives Understand that the demand for a factor of production such as labour is derived from the demand for the product and that it will be influenced by

### AS Economics. Introductory Macroeconomics. Sixth Form pre-reading

AS Economics Introductory Macroeconomics Sixth Form pre-reading National income National income (Y) = money value of goods and services produced in an economy over a period of time, usually one year. National