Mid Term Test
ECON1102 MACROECONOMICS 1
Session 2, 2012
Tutorial Test (Week 17-21 September)
INSTRUCTIONS
1. Tutorial tests will be constructed from the following pool of short-answer questions. 2. Each Tutorial test will be comprised of a sufficient number of short-answer questions to add-up to a total of 20 marks.
3. The marks for each question provide an indication of how much is required to answer the question.
4. Tutorial tests may contain questions on different topics.
5. The set of short-answer questions used will vary across Tutorial tests.
6. Where questions have numerical parts, the actual numbers used will be changed for the Tutorial tests.
7. You will have 30 minutes to complete your Tutorial test.
8. A non-programmable calculator may be used.
9. Answer sheets will be provided.
10. Since the following questions will be used in an exam; lecturers, tutors and
PASS leaders will not provide help in directly answering the questions.
Pool of Short-Answer Questions for Tutorial Tests
Explain the three different approaches that can be used to calculate GDP. Briefly indicate why all three approaches should give the same estimate for GDP.
(3 marks)
Is GDP a good measure of a country’s economic welfare? Discuss.
(5 marks)
Consider the following National Accounts data for the calendar year 2010.
$Bill
Private Consumption
1200
Imports
600
Government Purchases
600
Gross Taxation Receipts
800
Exports
500
Government Transfer Payments
300
Beginning-of-year Inventories
200
Net Interest Payments on Government Debt 40
End-of-year Inventories
100
Sales of Existing Houses and Flats
600
Business Fixed Investment
500
(a) Use the above data to calculate GDP for 2010. Explain how you arrive at your figure for
GDP
(1 mark)
(b) Use the above data to calculate National Saving in 2010. Explain how you arrive at your figure for National Saving.
(1 mark)
(c) Use the above data to calculate Private Saving in 2010. Explain how you arrive at
Session 2, 2012
Tutorial Test (Week 17-21 September)
INSTRUCTIONS
1. Tutorial tests will be constructed from the following pool of short-answer questions. 2. Each Tutorial test will be comprised of a sufficient number of short-answer questions to add-up to a total of 20 marks.
3. The marks for each question provide an indication of how much is required to answer the question.
4. Tutorial tests may contain questions on different topics.
5. The set of short-answer questions used will vary across Tutorial tests.
6. Where questions have numerical parts, the actual numbers used will be changed for the Tutorial tests.
7. You will have 30 minutes to complete your Tutorial test.
8. A non-programmable calculator may be used.
9. Answer sheets will be provided.
10. Since the following questions will be used in an exam; lecturers, tutors and
PASS leaders will not provide help in directly answering the questions.
Pool of Short-Answer Questions for Tutorial Tests
Explain the three different approaches that can be used to calculate GDP. Briefly indicate why all three approaches should give the same estimate for GDP.
(3 marks)
Is GDP a good measure of a country’s economic welfare? Discuss.
(5 marks)
Consider the following National Accounts data for the calendar year 2010.
$Bill
Private Consumption
1200
Imports
600
Government Purchases
600
Gross Taxation Receipts
800
Exports
500
Government Transfer Payments
300
Beginning-of-year Inventories
200
Net Interest Payments on Government Debt 40
End-of-year Inventories
100
Sales of Existing Houses and Flats
600
Business Fixed Investment
500
(a) Use the above data to calculate GDP for 2010. Explain how you arrive at your figure for
GDP
(1 mark)
(b) Use the above data to calculate National Saving in 2010. Explain how you arrive at your figure for National Saving.
(1 mark)
(c) Use the above data to calculate Private Saving in 2010. Explain how you arrive at