DMC COLLEGE FOUNDATION

Sta. Filomena, Dipolog City

1st Semester 2017- 2018

SCHOOL OF BUSINESS AND ACCOUNTANCY

HIGHER EDUCATION DEPARTMENT Econ 3. (Macroeconomics)

SEMI FINAL EXAMINATION Earl Russell S. Paulican

NAME: ___________________________________________ SCORE: _______________________

COURSE/YEAR: ______________________________ DATE : _____________________

“Commit to the Lord whatever you do, and your plans will succeed”
Proverbs 16:3
Test I. IDENTIFICATION. FILL IN THE BLANKS WITH THE CORRECT ANSWERS. (2 Points Each)
1. The fact that available resources are insufficient to satisfy all desired uses thereof.
2. An increase in the average level of prices of goods and services.
3. A price index that refers to all goods and services included in GDP.
4. The absence of significant changes in the average price level; officially defined as the rate of
inflation of less than 3 percent.
5. Automatic adjustments of nominal income to the rate of inflation.
6. The nominal interest rate minus the anticipated rate of inflation.
7. The use of money and credit controls to influence macroeconomic outcomes.
8. The doctrine of “leave it alone”, or the nonintervention by the government in the market
mechanism.
9. An imperfection in the market mechanism that prevents optimal outcomes.
10. Government intervention that fails to improve economic outcomes.
11. The study of the aggregate economic behavior of the economy as a whole.
12. The annual percentage rate of increase in the average price level.
13. Payments to individuals for which no current goods or services are exchanged.
14. Goods and services sold to foreign buyers.
15. A measure (index) of changes in the average price of consumer goods and services.
16. Inflation rate in excess of 200 percent, lasting at least 1 year.
17. The movement of taxpayers into higher tax brackets as nominal income grows.
18. The use of nominal peso rather than real peso to gauge changes in one’s income or wealth.
19. A decline in total output (real GDP) for two or more consecutive quarters.
20. Nominal income adjusted for inflation.
21. The ability and willingness to buy specific quantities of a good at alternative prices in a
given time period, ceteris paribus.
22. The alternating periods of economic growth and contraction.
23. Goods frequently consumed in combination; when the price of good x rises, the demand
for good y falls, ceteris paribus.
24. The amount of money income received in a given time period measured in current peso.
25. The use of government taxes and spending to alter macroeconomic outcomes.
26. Supply creates its own demand.
27. The price of one good in comparison with the price of other goods.
28. A social science that deals on the study of how society allocates its scarce resources to
satisfy the unlimited needs and wants of the society.
29. A decrease in the average level of prices of goods and services.
30. The inability of labor-force participants to find jobs.

Test II. Essay. At least 10 sentences. Utilize the back page. (10 p0ints; 7- content, 3- structure)

1.) Who would be harm by a falling price level (deflation)? Explain.

2.) If the government guaranteed some income to unemployed persons, how might the unemployment rate be
affected?

-Success is a Choice, not a Destiny-

_keep on dreaming_

GOD Bless 