PARTI: MULTIPLE CHOICE
1 . The CPI index:
A. Is usually highly correlated with the GROSS DOMESTIC PRODUCT deflator
B. Procedures the price of a consumption container; the GDP deflator, instead, measures the price tag on a bag of regionally produced merchandise C. Is sensitive towards the high volatility of the cost of food and energy D. All of the above
2 . Looking at the composition of GDP within the last 50 years, we can claim that: A. Both in India and the US the intake share has been converging to about 70 percent B. The investment share has a confident trend in India and negative craze in the US C. Both US and India are net exporters, and the exports signify a large share of GROSS DOMESTIC PRODUCT D. The us government expenditure talk about has decreased both in India and the US
3. The desired investment level:
A. increases when possibly the real rate in the economy or maybe the price of equipment increase M. decreases if expected output increases
C. increases in case the Effective Tax Rate increases
D. none of the previously mentioned.
4. The latest negative Net-Exports (NX) in India:
At the. Implies that the rest of the world (taken together) has adverse NX Farrenheit. Is traditionally the largest element of GDP
G. Helps international countries to boost their monetary investment in India L. non-e from the above
5. Offered the following survey for america economy:
A. US financial growth stunted during the initially quarter of 2011 compared to previous quarter. B. Initially quarter growth came in below the median projection for 2 . 0 percent. C. Realized pumpiing was below expectations
M. All of the over
6. Assume country X has a saving account surplus, which usually of the subsequent is true? A. Net foreign wealth (i. e., prosperity held by citizens of country X) will usually increase. W. Imports will be greater than exports.
C. Countrywide savings will be lower than in the event the country provides a current account shortfall.
G. All of the previously mentioned.
7. If a Brazilian business opens a brand new factory in Peru, this makes A.
another direct investment. The factory could make a bigger impact on Peru's GDP than about its GNP. B.
a foreign direct expense. The factory could make a bigger effect on Peru's GNP than on its GROSS DOMESTIC PRODUCT. C.
a foreign portfolio investment. The factory could make a bigger influence on Peru's GDP than in its GNP. D.
another portfolio expense. The factory will make a bigger influence on Peru's GNP than upon its GROSS DOMESTIC PRODUCT.
8. Which will of the next is a problem with how actual GDP is typically measured: A. Measurements tend not to account for inflation.
B. It is hard or extremely hard to evaluate black marketplace (illegal) activity. C. GDP overstates the consequence of pollution and other externalities. Deb. All of the over.
E. non-e of the over.
9. When considering international trade, economic increases from trading item A for item B A. are feasible if 1 country is much better at generating item A and an additional country is way better at making item M.
B. will be possible in the event one region is better for producing both equally item A and item B. C. are easy for goods although not services (such as software and entertainment). D. A and M
10. Guess that a Canadian citizen passes across the border each day to work in the usa. Her cash flow from this job would be measured in A. U. S. GNP and Canadian GNP.
N. U. S i9000. GNP and Canadian GDP.
C. U. S. GROSS DOMESTIC PRODUCT and Canadian GNP.
D. U. S. GDP and Canadian GROSS DOMESTIC PRODUCT.
Question you: Suppose that the Indian federal government increases taxation on foreign investments as well as for political causes stops pushing economic reconstructs aimed at facilitating financial the usage. Suppose that international investors start to be more concerned with growth and political risk in India. Using graphs, explain how this will impact investment, genuine GDP progress, and the saving account (savings without investment).
Buyers will require an increased premium in investment in India. Presented the higher interest, there will be fewer project...