ECS1601 EXAM QUESTIONS & ANSWERS

Question 1 A nation’s standard of living will certainly increase when... A. real GDP rises faster than the population growth rate. B. real GDP rises faster than the price level. C. real GDP rises.D. real GDP rises faster than the number of people employed. Answer Key: A Question 2 The term nominal GDP implies that... A. constant prices were used to calculate GDP. B. base year prices were used to calculate GDP. C. current prices were used to calculate GDP. D. domestic prices were used ...

Which of the following is/are correct? a) Households are confronted with unlimited wants, but with limited resources with which to satisfy those wants b) The scarcity of resources necessitate households to make choices - ANS-both a and b are correct Which of the following is/are correct regarding the distinction between macroeconomics and microeconomics? a) The price of apples at the supermarket is an example of a macroeconomic variable. b) An increase in the general price level (inflati...