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Max Marks: 10
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1. A nations standard of living is measured by itsA. real GDP.B.
real GDP per person.C. nominal GDP.D. nominal GDP per person.2.
Which of the following is human capital?A. a companys cafeteriaB.
employees knowledge of the production processC. the exercise
equipment in a companys gymD. All of the above are correct.3. Which
of the following would increase productivity?A. an increase in the
amount of equipment per-workerB. an increase in the knowledge and
skills of workersC. the discovery of new raw materialsD. All of the
above are correct.
8/12/2019 Macro 2A Quiz
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4. If there are diminishing returns to capital,A. capital
produces fewer goods as it ages.B. increases in the capital stock
eventually decrease output.C. the smaller the capital stock, the
less an increase in the capital stock increases output.D. the
larger the capital stock, the less an increase in the capital stock
increases output.5. The logic behind the catch-up effect is thatA.
workers in countries with low income will work harder than workers
in countries with high incomes.B. new capital adds more to
production in a country that doesnt have much capital than in a
country that already
has much capital.
C. the capital stock in rich countries deteriorates more rapidly
than the capital stock in poor countries.D. None of the above is
correct.6. When a country saves a smaller portion of its GDP, it
will haveA. more investment, and so have more capital and higher
productivity.B. more investment, and so have less capital and lower
productivity.C. less investment, and so have more capital and
higher productivity.D. less investment, and so have less capital
and lower productivity.7. What are the two basic categories of
financial institutions?A. the foreign exchange markets and the
stock marketsB. the financial markets and financial
intermediariesC. the market for loanable funds and the market for
capitalD. the lending market and the deposit market8. A certificate
of indebtedness that specifies the obligations of the borrower to
the holder is called aA. stock.B. mutual fund.C. bond.D. All of the
above are correct.9. A mutual fundA. is a financial market where
small firms sell stocks and bonds to raise funds.B. is money set
aside by local governments to lend to small firms who want to
invest in projects that are mutually
beneficial to the firm and community.
C. sells stocks and bonds on behalf of small and
not-very-well-known firms who would otherwise have to pay
highinterest to obtain credit.
D. sells shares to the public and uses the proceeds to buy a
selection of various types of stocks, bonds, or bothstocks and
bonds.
10.Which of the following equations represents national saving
in a closed economy?A. YIGNXB. YCGC. YICD. G + CY
