Dear ACC1002 students
Attached is the mid-term test question paper. Answers are on the last page o
Week 6 Tutorial: Economic Growth / Monitoring Jobs and Inflation
1. How does increase in savings lead to higher potential real GDP? Use the labour demand-supply
and production function diagram to illustrate your answer.
2. Is full employment ben
Week 5 Tutorial: Measuring GDP and Economic Growth
1. Explain the difference between gross investment and net investment.
[Note: Please read Economics by McConnell and Brue for additional references. You can get a
copy of the text in the library
Week 11 Tutorial: Monetary System
1. Suppose the T-Account for ANZ (a commercial bank in Australia) is as follows:
Currently, the bank does not hold any excess reserves.
a) What is the
Week 2 Tutorial: (Answer)
Production Possibilities Curve of The Country
Bottles of Coke produced per hour
Pizza produced per hour
(ii) (a) The combination of 3 pizzas and
Tutorial 1: (Answer)
1. Yes, scarcity happens to all nations including a developed nation like USA. There is no
exception to any of the countries as long as the resources in the world are limited and the
human wants are unlimited,
296 9%? ‘i‘klEEEE MONEY, BANKING, AND MONETARY POLICY
HOW BANKS CREATE MONEY €§iﬂ$7§2§ 21% 297
Of course, when the securities dealer draws and
clears a check for $50,000 against the Wahoo bank,
the bank loses both reserves and deposits in that
Process of constructing columns
All concrete columns must rest at top of a suitable footing or a foundation which is big
enough to accommodate their weight but never on loose earth. If there have separate columns on
the site, each must have a footing not
IMPORTANCE OF ETHICS AND MORALITY
Ethics and Morality are very important aspects in our world. First of all, I would
like to explain about Ethics. Ethics known as moral philosophy which is a branch of
philosophy that involves systematizing, protecting and
1. Does scarcity happen to a developed nation like USA?
2. What is the difference between capital and financial capital.
3. With reference to Apple company, explain scarcity, choices and opportunity costs.
Week 10 Tutorial: Expenditure Multipliers The Keynesian Model
1. If the country faces high inflation, explain how a fiscal policy can be used to solve the problem.
Use an AE-Output diagram to support your answer.
2. Imagine a 3-sector economy.
Week 9 Tutorial: Expenditure Multipliers The Keynesian Model
1. You are given the following consumption function: Y = $500 + 0.8Yd. If disposable income equals
$5,000, determine the average propensity to consume.
2. Briefly explain how each of t
Note to students:
This exam paper has
six amendments for
2009/10 & later cohorts.
Key answers are
appended at the end of
the question paper.
NATIONAL UNIVERSITY OF SINGAPORE
Semester 1 (2007/2008) Examinations
Week 2 Tutorial:
1. The information in the table below illustrates the production possibilities curve of a
Pizza produced Bottles of Coke produced
P = D1 / (k-g)
D1 = $2 (1+0.06)2 = $2.25
P = 2.25 / (0.13 0.06) = $32.14
The expected price of each share to be: $32.14
The value of the companys common stock = $32.14 x 2 million shares outstanding = $64.28