Masaryk University - Brno
Department of Economics – Faculty of Economics and Administration
Lipová 507/41a, Pisárky, Brno
BPE_MAC1 Macroeconomics 1 – Spring Semester 2011
1
Tutorial Session 2 - 04.03.2011, 10:15-11:00 a.m.
Multiple Choice
Identify the choice that best completes the statement or answers the question.
____ 1. If one wants to know how the material well-being of the average person has changed over time the
appropriate measure to look at is the growth
a. rate of real GDP.
b. rate of nominal GDP.
c. rate of per capita real GDP.
d. in the percentage of the labour force that is employed.
____ 2. Per capita real GDP differs from per capita nominal GDP in that real GDP
a. measures the opportunity cost of growth.
b. has been adjusted for the time value of money.
c. has been adjusted for inflation.
d. has been discounted to the present.
____ 3. Poor countries are poor for all of the following reasons except
a. their technology is less than modern.
b. their labour productivity is low.
c. foreign investment funds are difficult to attract.
d. their labour force is too small.
____ 4. Which of the following represents a productivity-enhancing investment in human capital?
a. a new labour-saving technology
b. a new health clinic
c. a new factory that will employ 1,000 workers
d. an increase in fringe benefits, such as paid vacations and overtime pay
____ 5. An increase in the capital stock causes labour productivity to
a. decrease and the standard of living to increase.
b. increase and the standard of living to increase.
c. decrease and the standard of living to decrease.
d. increase while the standard of living remains constant.
____ 6. Labour productivity, measuring the output per worker,
a. increases with increases in technology.
b. decreases with increases in technology.
c. increases with increases in capital stock.
d. is impossible to measure since so many workers are involved in the service sector.
____ 7. Which of the following statements about technological knowledge is NOT correct.
a. Technological knowledge is a key determinant of productivity.
b. Technological knowledge is the understanding of the best ways to produce goods and
services.
c. Technological knowledge may be common knowledge, available to all, or proprietary
knowledge, known only to certain people or firms.
d. Technological knowledge is an element of human capital.
Masaryk University - Brno, Department of Economics - Faculty of Economics and Administration
Lipová 507/41a, Pisárky, Brno
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____ 8. Inward-oriented policies hold back economic growth because
a. international trade leads to lower domestic employment.
b. they encourage the brain drain.
c. infant industries are unable to compete with the rest of the world.
d. they do not allow a country to take advantage of the gains from trade.
____ 9. An important link between politics and economics is that
a. democracies are more productive than non-democracies.
b. democracies must constantly make difficult budgetary choices.
c. political instability is incompatible with long-term private investment.
d. conservative governments tend to focus development on military industries.
____ 10. A key benefit of foreign direct investment to poorer countries is
a. they gain all the returns on such investment.
b. that such investment is very reliable.
c. they avoid the need to have their own stock market.
d. they gain state-of-the-art technological knowledge.
ID: A
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Tutorial Session 2 - 04.03.2011, 10:15-11:00 a.m.
Answer Section
MULTIPLE CHOICE
1. ANS: C
rate of per capita real GDP.
PTS: 1
2. ANS: C
has been adjusted for inflation.
PTS: 1
3. ANS: D
their labour force is too small.
PTS: 1
4. ANS: B
a new health clinic
PTS: 1
5. ANS: B
increase and the standard of living to increase.
PTS: 1
6. ANS: A
increases with increases in technology.
PTS: 1
7. ANS: D
Technological knowledge is an element of human capital.
PTS: 1
8. ANS: D
they do not allow a country to take advantage of the gains from trade.
PTS: 1
9. ANS: C
political instability is incompatible with long-term private investment.
PTS: 1
10. ANS: D
they gain state-of-the-art technological knowledge.
PTS: 1