BMC COMPREHENSIVE QUESTIONS AND
CORRECT ANSWERS
◉ How accurately do GDP portray the economy and why?
Answer: Inaccurately because the scope of GDP measurements can
change.
◉ Consider the formula GDP = C+I+G+(X-M). A country is
undergoing a boom in consumption of domestic and foreign luxury
goods. In one year, the dollar growth in imports is greater than the
dollar growth in domestic consumption. Assuming nothing else has
changed, what happened to GDP?
Answer: It went down
◉ Here is the most important economic data for Australia and
Sweden. which economy did better year-over-year (YOY) in the
fourth quarter of 2013 compared to the fourth quarter of 2012? Use
the two charts to investigate.
Answer: Sweden performed better
◉ In the United States, why is there a strong correlation between
unemployment and GDP?
,Answer: Consumer spending accounts for two-thirds of the U.S.
economy when the number of unemployed consumers rises, there is
less consumer spending.
◉ Here is a chart showing both nominal GDP growth and real GDP
growth for a country. Which of the following can be a true statement
at the time the chart was captured?
Answer: The country has deflation. The bottom line is nominal
growth and the top line is real growth.
◉ Which of the following lines is the best leading economic
indicator?
Answer: PMI
◉ The "misery index" is often cited in the media as a way to measure
consumer pain. It is defined as the inflation rate plus the
unemployment rate.....
Answer: Argentina
◉ What typically happens to nonfarm payrolls, the PMI indicator,
and housing starts at the onset of a recession in the United States?
Answer: Nonfarm payrolls go down, the PMI indicator goes DOWN,
the housing starts goes down.
, ◉ Which of the following qualities of economic indicators do
investors prize the most?
Answer: Timeliness of release
◉ Why is the release of GDP statistics less interesting to investors
than the release of other economic indicators?
Answer: Because GDP statistics are released well after other
economic indicators.
◉ Which of the following important U.S. economic indicators is only
available on a quarterly basis?
Answer: GDP
◉ Which economic indicator is most directly linked to
unemployment?
Answer: nonfarm payrolls
◉ Here is the economic calendar for the UK for august 2013.
Examine indicators like PMI,......
Answer: Above expectations
◉ This chart was captured in mid-2014. At that point in time, which
of the following terms.....
Answer: Deceleration
CORRECT ANSWERS
◉ How accurately do GDP portray the economy and why?
Answer: Inaccurately because the scope of GDP measurements can
change.
◉ Consider the formula GDP = C+I+G+(X-M). A country is
undergoing a boom in consumption of domestic and foreign luxury
goods. In one year, the dollar growth in imports is greater than the
dollar growth in domestic consumption. Assuming nothing else has
changed, what happened to GDP?
Answer: It went down
◉ Here is the most important economic data for Australia and
Sweden. which economy did better year-over-year (YOY) in the
fourth quarter of 2013 compared to the fourth quarter of 2012? Use
the two charts to investigate.
Answer: Sweden performed better
◉ In the United States, why is there a strong correlation between
unemployment and GDP?
,Answer: Consumer spending accounts for two-thirds of the U.S.
economy when the number of unemployed consumers rises, there is
less consumer spending.
◉ Here is a chart showing both nominal GDP growth and real GDP
growth for a country. Which of the following can be a true statement
at the time the chart was captured?
Answer: The country has deflation. The bottom line is nominal
growth and the top line is real growth.
◉ Which of the following lines is the best leading economic
indicator?
Answer: PMI
◉ The "misery index" is often cited in the media as a way to measure
consumer pain. It is defined as the inflation rate plus the
unemployment rate.....
Answer: Argentina
◉ What typically happens to nonfarm payrolls, the PMI indicator,
and housing starts at the onset of a recession in the United States?
Answer: Nonfarm payrolls go down, the PMI indicator goes DOWN,
the housing starts goes down.
, ◉ Which of the following qualities of economic indicators do
investors prize the most?
Answer: Timeliness of release
◉ Why is the release of GDP statistics less interesting to investors
than the release of other economic indicators?
Answer: Because GDP statistics are released well after other
economic indicators.
◉ Which of the following important U.S. economic indicators is only
available on a quarterly basis?
Answer: GDP
◉ Which economic indicator is most directly linked to
unemployment?
Answer: nonfarm payrolls
◉ Here is the economic calendar for the UK for august 2013.
Examine indicators like PMI,......
Answer: Above expectations
◉ This chart was captured in mid-2014. At that point in time, which
of the following terms.....
Answer: Deceleration
