Quiz Bee Questions (Semis and Finals)

Semi-Final RoundEasy Round

1. What is the decrease in the value of the domestic currency relative to the currencies of other countries when exchange rates are fixed?

a. Appreciationb. Depreciationc. Revaluationd. Devaluation

Reference: Macroeconomics by Dornbusch, Fischer and Startz 10th edition Chapter 12 page 287

2. What is the system in which exchange rates are allowed to fluctuate with the forces of supply and demand?

a. Fixed Exchange Rate systemb. Floating Exchange Rate systemc. Pegged Exchange Rate systemd. Bretton Woods system

Reference: Macroeconomics by Dornbusch, Fischer and Startz 10th edition Chapter 12 page 285

3. Suppose that a spell of bad weather raises the price of wheat, a key ingredient of bread. This shifts the supply curve of bread to the right.

a. Trueb. False

Reference: Economics by Paul A. Samuelson and William Nordhaus 19th ed, p55

4. Which of the following is true about stagflation?a. Low Inflation and Low Unemploymentb. Low Inflation and High Unemploymentc. High Inflation and Low Unemploymentd. High Inflation and High Unemployment

Reference: Macroeconomics 10th edition by Dornbusch, Fischer and Startz Chapter 6 page 125

5. With every additional unit of a particular good you consume, your marginal utility from each additional unit of the good decreases.

a. Trueb. False


Average Round1. Given a marginal propensity to consume (MPC) of 3/4, what will be the multiplier?

a. 1/4 or 0.25b. 4 /3 or 1.33c. 4d. 10

Reference: Economics Principles by N. Gregory Mankiw Chapter 34 page 806

2. What are the three main tools of the monetary policy?a. Open Market Operations, Interest Rate, Reserve Requirementb. Open Market Operations, Discount Rate, Reserve Requirementc. Close Market Operations, Interest Rate, Reserve Requirementd. Close Market Operations, Discount Rate, Reserve Requirement


3. There exists such a good that as its price decreases, its quantity demanded also decreases. What is this good called?

a. Superior Goodb. Inferior Goodc. Giffen Goodd. Normal Good

Reference: Intermediate Microeconomics by Hal Varian 8th ed, p105

4. Without government intervention, positive externalities lead the market to produce less than the socially optimal amount of a particular good?

a. Trueb. False

Reference: Economics Principles by Gregory Mankiw, p228

5. What is the interest rate on the loans that the central bank makes to banks?a. Deposit rateb. Discount ratec. Inflation rated. Reserve rate

References: Economics Principles by N. Gregory Mankiw Chapter 29 page 670Macroeconomics by Dornbusch, Fischer and Startz 10th edition Chapter 16-2 page 400

Difficult Round1. Suppose the demand and supply of apples are given by the following equations:

QD = 110 – 10PQs = 10 +30PWhere QD is quantity demanded for apples, Qs is quantity supplied for apples, and P is price per apple. Compute for the equilibrium quantity of apples. Q* = 85

2. What is the theory of the determination of output and the overall price level holding that prices move proportionately with the money supply? Quantity Theory of Money

Reference: Understanding the Economics of Money, Banking and Financial Markets by Mishkin page 495

3. What is the revenue derived from the government’s ability to print money? Seigniorage

Reference: Understanding the Economics of Money, Banking and Financial Markets by Mishkin Chapter 18 p 486

4. What is the situation in which expansionary fiscal policy, such as increase in government spending, raises the interest rate and thereby reduces investment spending, as well as, aggregate demand?Crowding-out Effect

Reference: Economics Principles by Mankiw Chapter 34 page 807

5. Who is the current Socioeconomic Planning secretary and National Economic Development Authority (NEDA) director general? Arsenio Balisacan

Final RoundFirst Phase (Point-Accumulation Phase)

1. Okun’s law states that 1 extra point of unemployment costs how many percent of GDP?a. 8%b. 4%c. 2%d. 1%


2. What is the increase in the value of the domestic currency relative to the currencies of other countries when exchange rates are flexible?

a. Appreciationb. Revaluationc. Depreciationd. Devaluation

Reference: Economics Principles by N. Gregory Mankiw Chapter 31 page 719Macroeconomics by Dornbusch, Fischer and Startz 10th edition Chapter 12 page 288

3. What is the maximum willingness to pay of an individual?a. Market priceb. Reservation pricec. Discount priced. Interest price


4. What is the theory that the interest rate adjusts to bring money supply and money demand into balance?a. Theory of Liquidity Preferenceb. Quantity Theory of Moneyc. Neoclassical Growth Theoryd. Purchasing-Power Parity


5. A perfectly discriminating monopolist achieves an outcome that is Pareto inefficient.

a. Trueb. False


6. What is the lost value to consumers and producers which are not captured by the levied tax?Deadweight Loss/Excess Burden


7. What do you call a person who receives the benefit of a public good but does not pay for it?Free-rider

Reference: Economics Principles by Gregory Mankiw, p248

8. What is the Net Domestic Product?

Gross Domestic Product (GDP) ₱ 1, 000, 000National Income 500, 000Personal Income 400, 000Net Factor Income from Abroad 300, 000Depreciation 200, 000Personal Taxes 100, 000

NDP = GDP-Depreciation = 800, 000Reference: Economics Principles by Mankiw Chapter 23 page 529Macroeconomics 10th edition by Dornbusch, Fischer and Startz Chapter 2-1 page 23

9. Who is the current governor of the Bangko Sentral ng Pilipinas (BSP)?Amando Tetangco Jr.

10. Suppose that the price of a certain commodity is ₱ 10 and the corresponding quantity demanded is 200 units. For some reasons, the price per unit was increased to ₱ 15. As a result, quantity demanded declined to 100 units. Find the price elasticity of demand using the midpoint method. e=5/3 or 1.67

Reference: Economic Principles by Gregory Mankiw, p116

Second Phase (Betting Phase)1. What is the graph showing the trade-off between unemployment and inflation?

Phillips CurveReference: Macroeconomics 10th edition by Dornbusch, Fischer and Startz Chapter 6 page 120

2. What type of unemployment can result from a fundamental mismatch between the jobs available and the skill level of the unemployed?Structural Unemployment

Reference: Economics Principles by Mankiw Chapter 28 page 638

3. What is the increase in consumption for each unit increase in disposable income? Marginal Propensity to Consumer (MPC)


4. What is a theory of exchange rates whereby a unit of any given currency should be able to buy the same quantity of goods in all countries?Purchasing-Power Parity

Reference: Economics Principles by N. Gregory Mankiw Chapter 31 page 723Macroeconomics by Dornbusch, Fischer and Startz 10th edition Chapter 12 page 289

5. What is the unemployment rate?Population of working age 60 000 000Employed 30 000 000Unemployed 10 000 000Not in labor force 20 000 000

UR = U/LF = 25%Reference: Economics Principles by Mankiw Chapter 28 page 631

6. Given an inflation rate of 3%, unemployment rate of 4%, and real interest rate of 5%, what is the nominal interest rate? 8%


7. Who is the new Federal Reserve system (Fed) chair of the United States? Janet Louise Yelen

8. Who is this 19th century Bristish economist who proposed the Theory of Comparative advantage? David Ricardo

9. The Asian economic crisis of 1997 started with the collapse of what currency? Thai Baht10. What is the annual GDP growth rate of the Philippines for 2013? 7.2%

Clincher Round:

1. What is the opportunity cost of holding money? Interest rate


2. What type of good is used to produce other goods or services? Intermediate Good


3. What is the hypothetical long-run rate of unemployment around which the actual unemployment rate fluctuates? Natural Rate of Unemployment

Reference: Economics Principles by Mankiw Glossary

4. All kinds of taxes are distortionary and move the allocation of resources away from the socially optimum.FalseReference: Economics Principles by Gregory Mankiw, p231

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Quiz Bee Questions (Semis and Finals)