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2007 HSC
The Marginal Propensity to Consume (MPC) for an economy is 0.8. An increase in investment leads to an increase in national income of $250m. Other things being equal, what is the value of the increase in investment?
(A) $50m (B) $150m(C) $200m(D) $312.5m
2006 HSC
Other things being equal, if an increase of $90m in investment expenditure resulted in an increase in national income of $225m, what is the value of the Marginal Propensity to Consume (MPC)?
(A) 0.25 (B) 0.4 (C) 0.6 (D) 2.5
The table shows selected data for an economy. Year Money GDP ($bn) CPI
1 600.0 100
2 750.0 110
3 820.0 125
4 900.0 130
According to the information in the table, what is the real GDP ($bn) in Year 3 compared to the base year?
(A) $656.0 (B) $721.6 (C) $931.8 (D) $1025.0
HSC 2005The table shows selected data for an economy over a one-year period.
Initial changein investmentexpenditure($m)Marginalpropensityto consume(MPC)
Marginalpropensityto save(MPS)Change inequilibriumnational income($m)
400??2000
According to the information in the table, what are the values of MPC and MPS?(A) MPC is 5.0 and MPS is 5.0(B) MPC is 0.5 and MPS is 0.5(C) MPC is 8.0 and MPS is 2.0(D) MPC is 0.8 and MPS is 0.2
HSC 2004An increase in investment expenditure of $100m changes the equilibrium level ofnational income by $250m. What is the size of the Marginal Propensity to Consume?(A) 0.4(B) 0.6(C) 1.25(D) 2.50The table shows selected data for an economy.
National incomecomponents
($ million)
Savings
50
Investment30
Taxation
40
Exports
50
Government spending
20
Imports30
Using the information in the table, which statement is correct for this economy?
(A) There is a budget deficit.(B) The economy is in equilibrium.(C) There is a current account deficit.(D) Withdrawals are greater than injections.
2003 HSC
Which of the following could be a consequence of an increase in real Gross DomesticProduct?
(A) An increase in consumption and an increase in taxation revenue(B) A decrease in consumption and a decrease in taxation revenue(C) An increase in consumption and a decrease in taxation revenue(D) A decrease in consumption and an increase in taxation revenue
Which of the following is regarded as a measure of a nations external stability?
(A) Net income as a percentage of Gross Domestic Product(B) Net foreign debt as a percentage of Gross Domestic Product(C) Net services as a percentage of Gross Domestic Product(D) Net transfers as a percentage of Gross Domestic ProductWhat is the equilibrium level of income if C = 100 + 0.8Y and I = 40?
(A) 100(B) 140(C) 500(D) 700
The table shows the marginal propensity to consume for an economy.What does the table indicate about the size of the simple multiplier for this economy?
YearMarginal Propensity to Consume (MPC)
10.2
20.3
30.6
(A) It was highest in Year 1.(B) It was lowest in Year 3.(C) It increased between Years 1 and 3.(D) It doubled between Years 2 and 3.