10.

12.

12.

2 C 81866

. Total costs equal
(a) MC+AC (४) ೫೦ 180.
(2) MC+VC. (6) 70400,
Part 11
Which of the following is GDP measured in actual market prices ?
(a) Actual GDP. (b) Nominal GDP.
(c) Potential GDP. (d) Real GDP.
If we have a Cobb-Douglas aggregate production function, the term “constant returns to scale”

refers to the fact that :
(೩) Share of capital in productioa is always equal to the share of labor.
(b) Marginal product of capital always equals marginal product of labor.
(c) Share of capital and share of labor in production add up to one.
(d) Total factor productivity is equal to one.

GDP =

(a) C+1+G+M. (b) C+G+X.

(c) 140 (d) None of the above.
Which of the following is NOT an issue in macroeconomics ?

(a) Issues relating to the balance of payment.

(b) The determination of prices in the agricultural sector.

(c) The relationship between inflation and unemployment.

(d) The possible effect of budget deficit increases on the level of investment.

In order to avoid —-——————_,, when calculating GDP, one should include only the final goods
and exclude the intermediate goods that are used in the production process.

(a) Inflation. (b) Statistical bias.

(c) Double counting. (d) Value-added.
Transfer payments refer to

(a) Total number of inputs used in production.
(b) Government payments to individuals not for goods or services supplied.
(c) Capital that has been used in a year.

(d) All of the above.
(12 x % = 6 marks)