Macroeconomics studies the behavior of the individual economic market. True or False? ___________ *False* ________ was the economist who developed a general theory of income, output and employment. *Keynes* The term “macro” was first used in economics by Ragner Frisch in the year ___________ *1933* Full employment means the absence of __________ unemployment. *Involuntary* One of the goals of macroeconomics policy is to stabilize the price level. True or False? ___________ *True* Macroeconomics is the study of ___________ of an economy as a whole *Aggregates* ___________ is the summation of all the values of goods and services produced in a country by the nationals and non-nationals. *GDP* Goods and services produced in the previous years are included in the GDP calculation. True or False? _______________ *False* Final good or service is the end product of the ___________ process. *Production* A special type of good that is difficult to class as intermediate or final is a ___________ good *Capital* Social security such as unemployment insurance, scholarships are called ___________ payment *Transferred* Problem of ___________ counting is one of the problems of computation of GDP *Double* The income of citizens of a country living abroad is termed ___________ income from the rest of the world *Factor* Net National Product is Gross National Product minus ___________ *Depreciation* Domestic income is ___________ income minus net income earned from abroad *National* __________ income is personal income minus direct taxes. *Disposable* Real gross domestic product is nominal gross domestic product that has been adjusted for _____________ *Inflation* ________ GDP is the GDP measured in the current market prices of the goods and services. *Nominal* Real GDP is called GDP at ___________ prices *Constant* A particular year when prices are normal or stable is called the _______________ year *Base* National income account provides a basis for national economic policies. True or False ___________________ *True* National income is GDP less net factor income from ___________ *Abroad* When import is subtracted from export, we have ___________ exports *Net* When consumer expenditure is subtracted from the amount of disposable income, it is referred to as ___________ *Savings* The current governor of Central Bank of Nigeria is ___________ *Godwin Emefiele* ___________ is the use of goods and services by households *Consumption* The lender of last resort and financial adviser to the government is ___________ bank *Central* In the consumption function, C = b0 + b1Y ; b0 is referred to as ___________ consumption *Autonomous* b1 in the consumption function is known as ___________ propensity to consume *Marginal* Autonomous consumption represents consumption when income is ___________ *Zero* ___________ propensity to consume refers to the percentage of income that is spent on goods and services rather than on savings *Average* Government policy is not a determinant of savings. True or False ___________ *False* Level of national income is a determinant of investment. True or False ______________ *True* ___________ coincidence of want is a problem associated with trade by barter *Double* The ease with which money can be carried is referred to as ___________ *Portability* Money as a ___________ of exchange is the most important function of money *Medium* Money as a unit of ___________ makes it possible to measure the prices of goods and services *Account* The demand for liquidity for day to day transactions is known as ___________ motive for liquidity. *Transactionary* ___________ motive is the demand for liquidity for unforeseen circumstances *Precautionary* A financial institution which accepts deposits, makes business loans, and offers related services is a ___________ bank *Commercial* Non-residential investment is not part of gross private domestic investment. Agree or Disagree ___________________ *Disagree* ___________ investment is the value of investment in buildings, machinery, before taking away depreciation *Gross* National defence, provision of social amenities , policing, internal and external securities are all part of ___________ spending *Government* Value added tax is an example of ___________ tax *Indirect* Personal income tax, capital gains tax are examples of ___________ tax *Direct* Government consumption and investment are part of government spending but excludes ___________ payments. *Transfer* Government ___________ is money received by a government *Revenue* ___________ is a compulsory levy imposed by the government on individuals and business firms *Tax* A situation where tax rate reduces as the size of income increases is ___________ tax *Regressive* Budget ___________ is a status of financial health in which expenditures exceed revenue *Deficit* Macroeconomics studies the behavior of which economic systems whole (aggregate) Macroeconomics examines All of the options Objectives of macroeconomics does not include Individual economic market When the real per capita income of a country increases over a long period of time is known as economic growth One of the Keynesian concept of full employment involves Reduction in the real wage rate ___ is the study of individual economic units of an economy Microeconomics The major determinant of macroeconomic problems is Income Who developed macroeconomics as a distinct method in economic theory? John Keynes The summation of all the values of goods and services produced in a country by the nationals and non-nationals is Gross domestic product (GDP) Which of the following is not a problem of national income determination? None of the options The followings is not included in the calculation of GDP except current year production Domestic income does not include: Income earned abroad The ratio of a country’s income to its population is known as ___ Per capita income Personal income minus direct tax is known as Disposable income The importance of national income accounting does not include For poverty alleviation There are ___ basic approaches to the measurement of GDP Three (3) After subtracting depreciation from GNP, what we get is called Net national product (NNP). Aggregate consumption in any economy depends on a number of factors except Capital accumulation The determinants of savings does not include Social cost Saving is income Not spent With disposable income of N20,000 and spending of N8,000. What is APC? 0.4 Components of investment includes All of the options Which of the following is not a determinant of investment None of the options The exchange of good for goods and services for services is called Barter system One of these is not a stage in the evolution of money Standard money Who formulated the equation of exchange? Irvin Fisher The following are functions of money except Unit of Measurement The first money deposit bank in Nigeria was established in the year 1891 One of these is not a function of the central bank Acceptance of deposits Precautionary demand for money will be directly influenced by A person’s level of income One of the following is not a problem associated with the barter system None of the options Holding cash for the purchase of bond and securities is referred to as Speculative demand for money The first bank in Nigeria was known as African Banking Corporation The primary function of commercial bank is to Accept deposits from every class Banks that were licensed before Nigeria’s independence in 1960 First generation banks The expenditure of households on goods and services is referred to as Personal consumption expenditure Gross private domestic investment includes All of the options Reasons for the downward sloping of the Aggregate Demand Curve All of the options The components of aggregate expenditure does not include Capital accumulation Factors that lead to increase in government spending excludes. Political stability Reasons why government levy taxes exclude To punish the citizens One of these is not a disadvantage of international trade Technical knowledge Trade between two countries is known as Bilateral trade Three approaches of measuring national income account are Income, output, expenditure Reasons for increased government expenditure in Nigeria does not include Good governance Compulsory levy by government to the citizens is known as Taxation The proponent of the theory of Comparative Cost Advantage David Ricardo Comparative advantage doctrine is based on the assumptions except Unequal cost of production Which arm of the government implements the budget The Executive Roles of government budgets exclude Advisory