ECON141
MACROECONOMIC PRINCIPLES
2016 1/3
Multi-choice test
Time allowed: FIFTY MINUTES
Instructions: Answer all 40 questions.
1. Answer ALL questions on the answer sheet provided (worth 1 mark each).
2. Questions that are incorrect, not attempted or with
Entry summary
ECON 140
The incumbent
The key questions the incumbent will ask themselves:
Can I block entry by acting like an unconstrained
monopolist? If so, that is what I will do.
Can I block entry and make a positive profit. This I will
consider.
Can
ECON 140
Lecture 24: Ricardian
Equivalence
The Issue
In recent years, many governments have been forced to
reduce expenditure (and reduce the government deficit),
due to worries about the size of government debt.
The key question is, therefore, does the s
ECON 140
Lecture 23: From the
short run to the long run
A story
The simplest story about moving from the short run to
the long run involves wages today being set by prices
yesterday. This backward-looking process means it takes
a while to get back to near
ECON 140
Lecture 21: The shortrun response to a shock
The Great Recession
We are now in a position to explore a shock to the
economy. I will focus on shocks that shed some light on
the recent global recession. But first, two questions
about the Great Rece
ECON 140
Lecture 22: The long-run
response to a shock
The long-run outcome
We have a permanent fall in investment which causes
the AD curve to shift to the left.
In the long run, we know that the economy will return to
potential output. That is, in the lo
ECON 140
Lecture 19: The AS
curve
Assumptions
Unlike many textbooks and macro models, the current
textbook assumes that firms are price takers (perfect
competition).
For simplicity, suppose firms produce output using labour
(only). Further, the production
ECON 140
Lecture 20: The Phillips
curve
AS to Phillips curve
The aggregate supply curve is closely related to the
Phillips curve and, in some models, they are exactly the
same.
In both curves, people make mistakes in the short run
while, in the long run,
ECON 140
Lecture 17: The AD
curve
IS and LM
A change in government spending (or any form of
autonomous spending) will have a smaller impact on real
GDP when we take into account the LM curve.
Suppose G decreases. The IS curve will shift to the left.
GDP w
ECON 140
Lecture 18: Changes in
the AD curve
The multiplier
I spoke of the multiplier for the Income-Expenditure
model. If we think of the multiplier in a similar way the
change in real GDP divided by the change in
autonomous spending then the inclusion o
ECON 140
Lecture 15: The demand
for money
Definitions
What is money?
Money can be thought of as those objects (things) that
people conventionally use to buy goods and services.
The standard definition of money (M1) is cash (held by
the non-bank public), p
ECON 140
Lecture 11: Macroeconomics
Caveat
Every statement I make is false, in that it should come
with five pages of assumptions and provisos.
If there is one key principal in macro, it is that things are
never as simple as they first appear.
Output
T
ECON 140
Lecture 16: The LM
curve
Issues
Although the LM curve can be made theoretically
coherent, it still has some issues and requires some
assumptions.
The supply of money is fixed, even though most money
is supplied by private banks. This is usually j
ECON 140
Lecture 10: Telecommunications
and Electricity in New Zealand
Telecommunications
The traditional market is voice down copper wires. This
was the dominant market when Telecom was privatised
(in 1990).
New markets include data down (copper) wires
ECON 140
Lecture 12: The IncomeExpenditure Model
Basics
The main driver of current expenditure demand is current
income, which is taken to be current GDP.
Expenditure is broken into a constant, A, autonomous
spending that does not depend on current GDP (t
ECON 140
Lecture 9: Competition and
Regulation
Industries
What should be the rules of the game if a market is
dominated by a small number of firms?
To provide a focus to this question, I will consider the
telecommunication and electricity markets in New
ECON 140
Lecture 8: Imperfect information
(continued)
Summary
Strategies available to sellers (of good products), when
buyers cannot distinguish between good and bad
products before they purchase the product; reputation
and guarantees.
How do customers
ECON 140
Lecture 7: Imperfect information
Summary
Adverse selection. Those customers that sign up to a
contract are those that value the contract the most. This
(self) selection bias needs to be taken into account by
firms.
Moral hazard. Once I am insur
The AS curve: Intuition
The story
I will consider the situation for date/period 1. For
simplicity, I will assume a constant-returns, labour-only
production function. For simplicity, one unit of labour
produces one unit of output.
At date 0, when choosing
Games
Brief summary
Strategies and payoffs
For payoffs, we should really use utility, but we do not
know the utility functions of individuals. Instead, we tend
to think of payoffs in dollars. For simplicity, we then
assume that individuals are risk neutra
ECON141
MACROECONOMIC PRINCIPLES
2016 3/3
Multi-choice test
Time allowed: FIFTY MINUTES
Instructions: Answer all 40 questions.
1. Answer ALL questions on the answer sheet provided (worth 1 mark each).
2. Questions that are incorrect, not attempted or with
ECON141
MACROECONOMIC PRINCIPLES
2015 3/3
Multi-choice test
Time allowed: FIFTY MINUTES
Instructions: Answer all 40 questions.
1. Answer ALL questions on the answer sheet provided (worth 1 mark each).
2. Questions that are incorrect, not attempted or with
GROSS DOMESTIC PRODUCT IN NEW ZEALAND
201314 (March year)
$m
Consumption
Investment (including stock-building)
Government spending
Net exports
Statistical discrepancy
GDP at market prices
126230
42784
41238
1661
3842
208071
Indirect taxes
Subsidies
GDP at
ECON 140
Lecture 7: Imperfect information
Information
In some situations, one person has information that is
costly or impossible for others to acquire.
I know whether I am happy or not. It will be impossible
for you to discover this.
I know all the pr
ECON 140
Lecture 3: Monopoly
Summary
Given the market demand curve and the cost curves of
firms, a monopolist will produce less, and charge more,
than a perfectly competitive market.
The monopolist will choose the point where MC = MR.
However, unlike pe
ECON 140
Lecture 5: Duopoly
Summary
A firms output is their action (in the duopoly game).
Each firm chooses their output to maximise their profit,
given their belief about the output level of the other firm.
Two firms colluding, so as to maximise joint
Management Learning: Past to Present
MGMT 101 Tri One 2014
Learning objectives
Learning Objectives:
s What can be learned from classical management thinking?
s What ideas were introduced by the human resource
approaches?
s What is the role of quantitative
Test 1
TRIMESTER 1, 2015
ACCY 130
ACCOUNTING FOR DECISION MAKING
Time allowed: 50 MINUTES. Multiple choice. Two minutes per question.
1. The business obligations to its creditors are:
a. Liabilities.
b. Expenses.
0 Payments.
(1 Owners equity.
(1 mark)
2
Principles of Macroeconomics, 9e - TB1 (Case/Fair/Oster)
Chapter
11
Money Demand and the Equilibrium Interest Rate
11.1
The Demand for Money
1
Multiple Choice
1)
When you deposit $100 in a bank, the bank
A)
pays you an interest rate and the deposit is a l
Item Analysis Graph Report
ECON 141 exam analysis report T3, 2016
Q1
Response
a
b
c
d
Percent
2.97
1.98
0.99
93.07
Correct: d
Q3
Response
a
b
c
d
Percent
16.83
16.83
65.35
0.99
Q4
Response
a
b
c
d
Percent
13.86
18.81
63.37
3.96
Q6
Correct: b
Q7
Q8
Respons
