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1. "Economist McKenzie attacks both American political parties' attraction to what he calls 'jobilism' - trying to create jobs mostly by protecting current jobs, thence reducing churn." Protecting current jobs is

a) good because it avoids inflation b) good because it promotes efficiency

c) bad because it creates unemployment d) bad because it inhibits productivity growth

2. "Lipsey points to evidence that when demand is held too long below capacity output, capacity itself may shrink, at least relative to the potential labor force." Capacity would shrink because of low levels of

a) investment b) consumption c) unemployment d) government spending

3. "It seems that Americans prefer to cut down on their saving to maintain living standards; the catch is that a low saving rate makes it harder to increase living standards." Low saving makes it harder to increase living standards because it causes

a) high taxes b) low investment c) low consumption d) low government spending

4. "He believes that the nation's core economic problem remains slow growth in productivity - a condition that is worsened, if not caused, by Americans' historically low rate of .... sentence.

a) saving b) unemployment c) consumer spending d) government spending

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"On those rare occasions when the economic benefits of accelerated infrastructure spending are discussed, it is usually in the context of the countercyclical role assigned to such spending by John Maynard Keynes, leading to charges of make-work projects with little economic value. Precious little is said about the critical links that exist between quality infrastructure and ....... "

5. Countercyclical government spending is

a) offset by appropriate tax policy b) higher in booms and lower in recessions

c) lower in booms and higher in recessions

d) steady during all parts of the business cycle

6.clipping.

a) taxation b) inflation c) unemployment d) aggregate supply

7. "Given the low level of savings and investment, some economists now fear that the United States will be lucky during the 1990s to match the record of the 1980s when the amount of goods and services produced by each worker rose a scant 0.8 percent a year." What technical term do economists use to talk about the phenomenon being discussed here?

a) inflation b) productivity c) unemployment d) national saving

8. "Over the longer term business may be shooting itself in the foot by taking a hard line against government taxing and spending policies if this hard line causes a decline in public spending on the economy's infrastructure - roads, sewers, bridges, and other public works." The essence of this argument is that a decline in infrastructure leads to

a) higher taxation b) lower inflation c) lower productivity d) lower national saving

9. "The case for tax breaks for investment rests on the claim that because of big spillover effects, the return on investment in machinery and equipment to the economy as a whole is far greater than ........" clipping.

a) the inflatiion created by this policy b) the return to consumers from saving

c) the return to the businesses doing the investing

d) the incentives to avoid the tax

10. "A popular view is that the best way for governments to stimulate growth is to improve the functioning of markets and adopt stable and credible macroeconomic policies which encourage firms to take a long-term view. The trouble with this view is that governments, like voters, are more interested in ............" clipping.

a) the short run b) inflation and unemployment

c) smoothing the business cycle d) all of the above

11. "Countries with a high level of education tend to absorb new technology more quickly and therefore grow more quickly. But one problem is that firms and workers cannot capture the external benefits from investing in education, which means that they ................" clipping.

a) cause higher unemployment b) invest too much in education

c) do not invest enough in education d) demand unrealistic wages and prices

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12. "Although the Americans talked boldly about boosting investment, they mainly ducked the question of how to boost America's low rate of ______. To finance higher investment America would have to increase _______ or slash _______." Fill in the blanks.

a) saving; taxes; government spending b) saving; government spending; taxes

c) taxation; saving; government spending d) taxation; government spending; saving

13. "They don't seem to be getting the underlying message in the country's failures in domestic and international markets: America has been destroying too few jobs." By destroying too few jobs America has been

a) creating inflation b) creating unemployment

c) inhibiting productivity increases d) wasting government tax revenues

14. "He claims that we must view the loss of hundreds of thousands of jobs in the U.S. textile industry over the past two decades as a positive measure of the success of the industry in dramatically improving ............." clipping.

a) inflation b) import sales c) productivity d) unemployment

15. "Yet Mr. Stein himself estimates that the growth of budget deficits during the 1980s cut 3 percent from the decade's GDP." The logic of this is that the deficits

a) caused crowding out which lowered GDP

b) caused higher taxation which lowered aggregate demand and so decreased GDP

c) diverted saving from investment and so caused a smaller productive capacity

d) diverted saving from consumption and so caused a smaller aggregate demand and thus a smaller GDP

16. "Domestic investment did not fall as sharply as did national saving because ......." clipping.

a) private saving increased b) the government deficit shrank

c) businesses borrowed at higher cost d) businesses borrowed from foreigners

17. Suppose income is $700b, consumption is $500b, taxes are $60b, and government spending is $80b. National saving is

a) $100b or less b) more than $100b but not more than $130b

c) more than $130b but not more than $180b d) more than $180b

18. Suppose national saving is $150b, the government deficit is $30b and gross investment is $170b. Foreign financing is

a) $20b or less b) more than $20b but not more than $30b

c) more than $30b but not more than $50b d) more than $50b

19. Suppose the multiplier is 3, the marginal tax rate is 20%, and the marginal propensity to consume out of disposable income is 0.9. If government spending increases by $10b, then national saving

a) increases b) decreases by $1b or less

c) decreases by more than $1b but not more than $2b d) decreases by more than $2b

20. Over the long run the most important determinant of our standard of living is

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a) judicious use of fiscal policy to prevent recessions

b) increases in productivity due to technological change

c) avoiding the unemployment caused by technological change

d) keeping money supply growth approximately equal to the real rate of growth

21. In the long run, the rate of growth of real wages is approximately equal to the rate of

a) inflation b) growth of labor productivity

c) growth of labor productivity plus inflation

d) growth of labor productivity minus inflation

22. An expansionary monetary policy and contractionary fiscal policy mix would increase future economic growth if it promoted

a) low interest rates, which encourage business investment

b) high interest rates, which encourage people to save and invest

c) low levels of personal savings to finance present consumption

d) high levels of personal savings to finance future consumption

23. The limit of an economy's total productive capacity at any given time is set by

a) the amount of money in circulation b) business demand for goods and services

c) the level of government spending and taxation

d) the quantity and quality of its productive resources

24. National saving is

a) the same as private saving b) private saving plus foreign financing

c) private saving less the government deficit

d) private saving plus foreign financing less the government deficit

25. "Some economists believe the economy is able to grow without ________ because of strong improvements in ________brought about by huge investments in new technology by business." The blanks are best filled in with

a) inflation; productivity b) inflation; aggregate demand

c) unemployment; productivity d) unemployment; aggregate demand

26. "One of the professors' more controversial findings is that public investment in physical capital (as opposed to human capital) in the last forty years has had a negative effect on economic growth. The researchers speculate that this is because public investment has "crowded out" ......" This is best completed with

a) imports b) exports c) consumption d) private investment

27. "The Opposition said that while it welcomed the high levels of growth, 'it is low-quality growth because investment is a missing ingredient. This is simply recovery brought about by government pump-priming. This growth cannot be sustained.' " A counterargument to this claim is that

a) investment is not an important ingredient in sustained growth

b) higher consumption spending, not investment spending, is the ultimate goal

c) as the recovery pushes the economy to capacity investment will be forthcoming

d) government pump-priming is an acknowledged means of stimulating an economy

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28. "Jorgenson said that the high cost of imported energy will cause business in general to substitute labor for energy in the production process and that this would likely have a number of harmful effects on the economy: reduced growth, lower productivity and higher inflation." This phenomenon causes reduced productivity because

a) it decreases the number of jobs b) labor has less energy to work with

c) businesses no longer try to minimize costs

d) businesses no longer try to adopt the most efficient production techniques

29. "The case for tax breaks for investment is based on the claim that, because of big spillover effects, the return on investment in machinery and equipment to the economy as a whole is ......" This is best completed with

a) practically zero b) less than the current rate of interest

c) less than the return to an individual firm

d) greater than the return to an individual firm

30. "Since 1991 business-sector productivity has increased at a 1.3 percent annual rate, while the adult population has increased at a 1 percent annual rate. Meantime, business output has risen 3.3 percent per year. The 1-percentage-point gap between output growth and productivity-adjusted population growth has been filled by ....... " This is best completed with

a) increases in the capital stock b) increases in the unemployment rate

c) decreases in hours worked per employee

d) increases in the labor-force participation rate

31. "The fact that economic performance strengthened as inflation subsided should not have been surprising, given that risk premiums and economic disincentives to ______ diminish as product prices become more stable." The blank is best filled with

a) employ more people b) purchase consumer durables

c) invest in productive capital d) undertake fiscal fine-tuning

32. "We should expect that after a couple of years of very robust gains in productivity (1.7% last year and 1.9% the year before, a substantial improvement on the 1% annual average over the 1974-95 period), productivity gains would be more moderate." We would expect more modest productivity gains because

a) capacity constraints have been reached b) consumption demand should accelerate

c) unemployment will likely be above the natural rate

d) it takes time for investment to augment the capital stock

33. "A couple of years ago, economists would have considered such low unemployment a sure sign that prices were about to rise. Today they point to productivity as the reason why that might not happen." Productivity could avoid price rises by

a) discouraging workers b) stimulating the demand for labor

c) increasing the natural rate of unemployment

d) allowing wage increases without requiring price increases to maintain profitability

34. "The Labor Department reported that output rose at a 3.9% annual rate, while hours worked were up 1.2%. The higher output, analysts said, was largely a result of businesses

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working their employees longer rather than adding to payrolls." During the third quarter productivity rose at an annual rate of

a) 2.7% if no new workers were hired b) 3.9% if no new workers were hired

c) 2.7% regardless of how many new workers were hired

d) slightly below 3.9% depending on how many new workers were hired

35. "Fed chairman Allan Greenspan worries that new Treasury borrowings could cause some crowding out and keep long rates _______ and economic growth _______ than normal." Fill in the blanks.

a) high; higher b) high; lower c) low; higher d) low; lower

36. "One question is whether the government can steel itself to bring its fiscal policy into line with the central bank's monetary policy. Will the government be able to borrow the funds it will need to cover this year's deficit out of the existing money supply, which the Fed is trying to restrict?" If the government tries to borrow more funds than are available there will be a rise in

a) exports b) inflation c) interest rates d) unemployment

37. "Fears had been expressed that financing of the federal deficit might squeeze private borrowers out of the market." Private borrowers are squeezed out of the market by

a) inflation b) higher taxes c) federal regulations d) higher interest rates

38. "Economists at the seminar agreed that the U.S. deficit of about $180 billion is severely straining domestic capital markets because private-sector capital demand is proving to be exceptionally buoyant." 'Severely straining' means producing

a) inflation b) higher taxes c) unemployment d) higher interest rates

39. "In a closed economy, government borrowing "crowds out" household and business investment by pricing them out of available savings, i.e., by ___________. So fiscal stimulus has no net impact on the economy. But in an open economy, excess demand for capital is met from ........" Fill in the blank and clipping.

a) higher taxes: higher exports b) higher taxes; foreign financing

c) higher interest rates: higher exports d) higher interest rates; foreign financing

40. "In general, the Treasury is doing less to "crowd out" private debtors, a phenomenon long considered to be one of the economy's weak points. Savings that would previously have gone into sterile government paper is instead available to ......."

This is best completed with

a) pay higher taxes b) finance exports

c) finance private investment d) increase consumption spending

41. "Another criticism of deficit budgets is that they hamper the private sector's ability to raise capital." This hampering is caused by

a) high taxes b) high bond prices c) high interest rates d) central bank bond purchases

42. "Ordinarily, an increase in the budget deficit raises interest rates, but this does not always happen." This may not happen because

a) the deficit may have been caused by a recession

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b) the deficit may have been caused by a tax rate decrease

c) the deficit may have been caused by a government spending increase

d) the deficit may have been financed by buying rather than selling bonds

43. "U.S. Federal Reserve Board chairman Paul Volcker told senators Thursday the huge federal budget deficit is causing disturbing pressures on interest rates." This is disturbing because

a) interest rates are being pushed too low, creating inflation

b) interest rates are being pushed too low, lowering saving

c) interest rates are being pushed too high, creating inflation

d) interest rates are being pushed too high, crowding out private investment

44. "The debt buildup is worrisome because it is not financing ......." s sentence.

a) budget deficits b) bond purchases c) capital investment d) consumption spending

45. "For future generations, much more important than the size of the deficit is whether government resources are being used to ........" clipping.

a) battle inflation b) build infrastructure c) reduce interest rates d) battle unemployment

46. "Budget deficits are sometimes useful to spur consumption and thus encourage investment in business plant and equipment, but more generally they discourage rather than encourage investment because they ....." This clipping is best completed with

a) create inflation b) raise interest rates

c) lower interest rates d) decrease aggregate demand

47. High savings rates have been a hallmark of Asia's economic development, helping the region's economies _______. Now they have come to be seen as a handicap because _______." The best way to fill these blanks is

a)

finance investment; the fall in aggregate demand worsens the recession

b)

finance investment; this creates inflation

c)

avoid inflation; the fall in aggregate demand worsens the recession

d)

avoid inflation; this creates inflation

48. "One theory as to why productivity in Canada and Europe does not adjust to recessions as robustly as the United States is that the U.S. market is inherently more flexible. Its labor laws and work force practices ......" This statement is best completed with

a)

protect workers from being laid off

b)

allow workers to be laid off easily

c)

fix wages for workers

d)

force workers to belong to unions

49. "As profits increase, there's going to be a need for a capital rationing process." The capital rationing process in the U.S. economy operates through

a)

interest rates b) government spending c) taxes d) unemployment changes

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50. "The survey of global labour market trends from the Geneva-based International Labour Organisation (ILO) found that Americans worked longer hours than Europeans, clocking up an average of 1,825 hours last year, compared with 1,300-1,800 hours in leading European economies. While unemployment in the EU as a whole was higher than in the US, one key indicator, the employment-to-population ratio, rose from 56.1 to 56.7 per cent between 1999 and 2002. The same measure fell from 64.3 to 62.7 per cent in the US during the same period." From these numbers it is likely that per capita income in the U.S. is

a)

higher than in Europe and the participation rate is lower

b)

higher than in Europe and the participation rate is higher

c)

lower than in Europe and the participation rate is lower

d)

lower than in Europe and the participation rate is higher

51. "India, however, is strong in ways that are not always apparent. Although its savings rate is lower than China's, it uses investment more efficiently to produce economic growth." "Uses investment more efficiently" means that investment projects are chosen by

a)

the government

b)

the capital market

c)

the central bank

d)

foreigners

52. "A key economic adviser to President George W. Bush said yesterday he believed that national saving was too low in the US. But he agreed that encouraging consumers to save at a time when their spending was largely responsible for keeping the US economic recovery on track could be risky. But in the longer term, he said, the rationale for increasing savings in the US was clear." The logic behind this statement is that in the short run higher saving

a)

decreases demand and so increases unemployment, but in the long term it increases the capital stock

b)

increases demand and so decreases unemployment, but in the long term it increases the capital stock

c)

decreases demand and so increases unemployment, but in the long term it decreases the capital stock

d)

increases demand and so decreases unemployment, but in the long term it increases the capital stock

53. "One way corporations justify growing debt is that it enables the expansion of markets and capital assets. But that isn't the case with the federal government. It produces nothing. Money tied up in the debt may go partially for necessities or entitlements that large segments of the population want to continue, but the debt itself is not an example of productive debt." What is an example of government "productive debt"? Borrowing to

a)

feed the poor

b)

subsidize medical care

c)

build roads

d)

pay pensions

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54. "Identifying bubbles is a thorny problem. Sharp price rises that appear irrational might in fact turn out to be justified. Policy makers need to be careful of trusting their judgment over the collective judgment of the market because efforts to restrain prices could interfere with the crucial role markets play in ........." The best way to statement is

a)

determining unemployment

b)

balancing the budget

c)

controlling inflation

d)

allocating capital

55. "Three quarters of all Americans worked on farms in 1800. Only 40 per cent did in 1900. And in 2000 only 3 per cent. This change was the best thing that could have happened to Americans." Explain why this change was so desirable.

a)

the unemployment rate fell dramatically

b)

inflation was prevented

c)

the business cycle disappeared

d)

creative destruction operated

56. "The argument is simple and convincing: Driven by an inexorable urge to cut costs and boost profits, business buys the latest labor-saving technology and fires workers, leading to higher unemployment across the economy. The government needs to do something about this greedy behavior." Evaluate this argument.

a)

good argument because unemployment is bad

b)

good argument because market failures need government fixups

c)

bad argument because government is just as greedy

d)

bad argument because it would inhibit growth in the standard of living

57. "Australia has passed the fruits of economic growth to working people through tax cuts, which encourages growth because ...." This clip is best completed with

a)

of supply side effects

b)

aggregate demand is increased

c)

the multiplier operates

d)

unemployment falls

58. "Inequalities often lead to calls for government intervention to redistribute wealth. But history has shown the result is often not only less inequScreenshot_20201128-170647_WhatsApp.jpgality, but also less ......." This clip is best completed with

a)

overall standard of living b) unemployment c) inflation d) taxes

59. 'Every time you say that you want to "stimulate" the economy, or get it going again, or whatever words you use, what you are actually doing is urging more expenditure without regard to what that expenditure is and what it might accomplish, and without regard to what it might crowd out or displace in the process." What is the main point being made here?

a)

the multiplier is smaller than we think

b)

"crowding out" is bigger than is believed

c)

more attention should be paid to the long-run supply side of the economy

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d)

more attention should be paid to the impact of expenditure increases on unemployment

60. "Economic policy these days is very risky because of a basic contradiction between near-term efforts to mitigate the recession and the long-term goal of growth." This contradiction is that

a) taxes need to be increased for short term but increased for long term

b) saving needs fall for short term but increase for long term

c) interest rates need to fall for short term but increase for long term

d) government spending needs to rise for short term but fall for long term

61. "A rapid, global, private sector shift to thrift is exactly what the world economy does not need, but it ought to be good news in the long term." The logic here is that higher thrift

a)

decreases current aggregate demand, but by financing investment increases long term growth

b)

finances current deficit spending, but reduces the deficit in the long run

c)

means higher taxes which decreases current aggregate demand, but finances long term government spending

d)

decreases aggregate demand, but stimulates the economy through supply-side effects

Image transcriptions

W l2. Describe the working of :1 Carry Look Ahead Adder using the example of 4 - hit numbers. Clearly show the derivations of the equations. Show the implementation in Hardware. (IO) l3. (s) Realize the following fimction using 4XI multiplexer. F(A,B,C)=zm(l,3,s,6) (5) (b) Design a BCD to Decimal decoder. Write down the Truth Table, Boolean expressions and show the Hardware implementation. (5) l4. (3) Draw a 4 - bit Asynchronous up counter and discuss its characteristics. Draw the waveforms. (5) (1:) Draw a 4 - bit Serial-In-Parallel-Out shift register and explain its working. (5) PART D Answer any two questions. Each question carries 10 marks. l5. Design a Mod 6 Synchronous counter. Enumerate all the steps in the design. (l0) l6. (a) Design a two bit flash type analog to digital converter. I its working. (6) (b) Compare and contrast between ROM mail (4) l7. Describe the structure WfifiE. site a simple example and explain. '1 T ('0)

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