The Weekend Quiz – October 27-28, 2018

Welcome to The Weekend Quiz. The quiz tests whether you have been paying attention or not to the blog posts that I post. See how you go with the following questions. Your results are only known to you and no records are retained.

Quiz #501

  • 1. Choose the correct response (all balances expressed as a per cent of GDP): (a) A nation can export less than the sum of imports, net factor income (such as interest and dividends) and net transfer payments (such as foreign aid) and run a government surplus of equal proportion to GDP, while the private domestic sector is spending less than they are earning. (b) A nation can export less than the sum of imports, net factor income (such as interest and dividends) and net transfer payments (such as foreign aid) and run a government sector surplus of equal proportion to GDP, while the private domestic sector is spending more than they are earning. (c) A nation can export less than the sum of imports, net factor income (such as interest and dividends) and net transfer payments (such as foreign aid) and run a government sector surplus that is larger, while the private domestic sector is spending less than they are earning. (d) None of the above are possible as they all defy the sectoral balances accounting identity.
    • Option (c)
    • Option (d)
    • Option (a)
    • Option (b)
  • 2. For workers to regain a larger share of national income, nominal wages have to grow faster than inflation - that is, the real wage has to rise.
    • False
    • True
  • 3. Economists use rules of thumb to make estimates of the future direction of key aggregates based upon assumptions about the movement in related aggregates. Say, we form the view that over the next year: (a) the average working week will be constant in hours; (b) real GDP growth rate will be 3 per cent; (c) output per unit of labour input (persons) grows at 1.5 per cent; and (d) the labour force maintains a growth rate of 1.5 per cent per annum. We would project that the:
    • Unemployment rate will rise in the coming year by 1.5 per cent.
    • Unemployment rate will fall in the coming year by 1.5 per cent.
    • The unemployment rate will be unchanged.

Sorry, quiz 501 is now closed.

You can find the answers and discussion here

This Post Has 9 Comments

  1. I also scored 2 out of 3, getting question 2 wrong. Q2 was, of course, the answer I had the most confidence in as well 🙂

  2. Quizes are nice but a shame only the answers are given but no explanations or links to articles about it. Would be very useful.

  3. Dear Dekin O’Sullivan (at 2018/10/26 at 7:56 pm)

    The quizzes are followed each day with extensive answers and discussion.

    best wishes
    bill

  4. To All

    Please don’t give the answers to the Quiz before I post them on Saturday afternoon. It just spoils it for those who have not yet had a go.

    best wishes
    bill

  5. “bill says:
    Friday, October 26, 2018 at 20:58
    Dear Dekin O’Sullivan (at 2018/10/26 at 7:56 pm)

    The quizzes are followed each day with extensive answers and discussion.”

    Ah great did not know that. Looking forward to it ! And thank you for these blogs, read them every day.

  6. Bill, I’m sorry I didn’t think about giving away the answers.
    And yet, the machine still would not let me correct my answer on question #2.
    Do you have any idea why that might be?
    Thanks. And again, sorry.

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