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Applied Economics (FDNECON)

FDNECON 05 · Mixed Quiz 2 Mock

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A hard 24-question mock across the four confirmed Quiz #2 areas: 12 true/false causal claims and 12 numerical/application questions. Original practice with worked explanations; not a prediction or copy of the upcoming paper.

Jade Laurence EmpleoPublic24 questionsApplied Economics (FDNECON)Updated
Editorial policy
14concepts
10calculations
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Original source-based practice for FDNECON Quiz #2. Questions are independent: use only each item’s complete givens. Amounts and units are stated in every numerical case. Numeric written answers omit currency symbols and units; rates are entered as numerical percentages (5 means 5%). Round only the final result to two decimals unless instructed otherwise. The course money-market diagram treats supply as vertical and policy-determined, with downward-sloping demand and other determinants fixed. Numerical money-demand equations, finite/infinite spending chains, gap percentages and multiplier/tax formulas are fully stated hypothetical practice extensions, not claims about measured Philippine outcomes or guaranteed policy effects. Expenditure and income approaches remain separate; foreign-income boundary inconsistencies in the source are explained in the reviewer. No question requires an unprovided graphic or another item’s answer. Try this mock after all four units. For an exam-like run, select final feedback; review each explanation after finishing.

Questions

01True or false: a lower unemployment rate proves more people obtained jobs, even when labor-force participation changes.
  1. True
  2. False
05. Introduction to Macroeconomics.pdf, pp. 12–13
02True or false: CPI rising from 140 to 144.2 after having risen from 133.33 to 140 indicates falling prices in the later period.
  1. True
  2. False
05. Introduction to Macroeconomics.pdf, pp. 17–18
03True or false: if all of nominal GDP growth comes from higher prices and quantities stay fixed, the course fixed-price real GDP calculation shows no output growth.
  1. True
  2. False
06. Macroeconomic Equilibrium.pdf, p. 21
04True or false: a government transfer must be counted once in G when paid and again in C when its recipient purchases a meal.
  1. True
  2. False
06. Macroeconomic Equilibrium.pdf, pp. 8–10
05True or false: the sum of value added along a complete domestic production chain can equal the final sale even though the sum of every intermediate sale is larger.
  1. True
  2. False
06. Macroeconomic Equilibrium.pdf, p. 23
06True or false: government spending and central-bank securities purchases are the same policy category because both may aim to increase employment.
  1. True
  2. False
07. Money, The Central Bank, and Monetary Policies.pdf, pp. 3, 9–10
07True or false: with money demand fixed, expanding money supply lowers the equilibrium interest rate in the lecture’s diagram; it does not guarantee a particular output increase.
  1. True
  2. False
07. Money, The Central Bank, and Monetary Policies.pdf, pp. 7, 10
08True or false: a rise in real GDP is merely movement along an unchanged money-demand curve because all money-demand changes are caused by interest rates.
  1. True
  2. False
07. Money, The Central Bank, and Monetary Policies.pdf, p. 7
09True or false: actual output above potential is an inflationary gap in the course framework, so reducing government purchases can restrain demand.
  1. True
  2. False
08. Fiscal Policies, International Market & Foreign Exchange Market.pdf, pp. 4–7
10True or false: the total multiplier effect includes the initial injection, so adding that injection a second time overstates the model total.
  1. True
  2. False
08. Fiscal Policies, International Market & Foreign Exchange Market.pdf, p. 8; stated simple-model interpretation
11True or false: crowding out requires private investment to rise by the same amount as government purchases.
  1. True
  2. False
08. Fiscal Policies, International Market & Foreign Exchange Market.pdf, p. 9
12True or false: money can serve as a store of value even when rising prices reduce its real purchasing power.
  1. True
  2. False
07. Money, The Central Bank, and Monetary Policies.pdf, pp. 4–5
13Which pair gives the new unemployment and participation rates?

Problem

Initially 12,000 people in a stated working-age population comprise 7,250 employed, 900 unemployed and 3,850 outside the labor force. Then 250 unemployed people leave the labor force. No jobs or other statuses change. Round both rates to two decimals.

  1. 5.42% and 65.83%
  2. 8.23% and 60.42%
  3. 7.50% and 67.92%
  4. 8.23% and 65.83%
05. Introduction to Macroeconomics.pdf, pp. 12–13
14What is inflation between these two CPI periods?

Problem

A fixed consumer basket cost ₱600 in the base year and ₱744 in the current year. Its previous-year CPI was 120. Calculate inflation from the previous year to the current year.

  1. 24%
  2. 3.33%
  3. 4%
  4. 20%
05. Introduction to Macroeconomics.pdf, pp. 16–18
15What is GDP by expenditure?

Problem

Annual values in ₱bn: C=950, I=240, G=370, exports=190, imports=270, cash transfers=60, wages=800. C/I/G already include their imported content. Use the expenditure approach only.

  1. ₱1,560 billion
  2. ₱1,940 billion
  3. ₱1,480 billion
  4. ₱1,390 billion
06. Macroeconomic Equilibrium.pdf, pp. 6–11
16What is current real output growth?

Problem

Only two final products exist. Base quantities: 100 meals and 20 notebooks. Current quantities: 120 meals and 25 notebooks. Base prices: ₱50 and ₱100. Current prices: ₱60 and ₱120. Use fixed base-price real GDP; round growth to two decimals.

  1. 20%
  2. 45.71%
  3. 21.43%
  4. 15%
06. Macroeconomic Equilibrium.pdf, p. 21
17Which unemployment classification and policy link fit best?

Problem

Retail firms dismiss otherwise qualified staff because an economy-wide downturn sharply reduces sales. No permanent technology change or seasonal hiring pattern is stated.

  1. Cyclical; supporting demand addresses the stated downturn mechanism.
  2. Frictional; a fall in economy-wide sales is only ordinary matching time.
  3. Structural; all recessions automatically eliminate every existing skill.
  4. Seasonal; every dismissal is seasonal.
05. Introduction to Macroeconomics.pdf, p. 14; 08. Fiscal Policies, International Market & Foreign Exchange Market.pdf, pp. 4–7
18What is total GDP from value added?

Problem

One-period domestic chain: grower sells output for ₱250 and has zero purchased inputs; processor sells for ₱580 using only the grower’s output; retailer sells final output for ₱1,080 using only processor output. No imports.

  1. ₱1,080
  2. ₱830
  3. ₱580
  4. ₱1,910
06. Macroeconomic Equilibrium.pdf, p. 23
19What is the equilibrium rate after the supply reduction?

Problem

Money demand Md=1,400−40r, with Md and Ms in ₱bn and r as a numerical percentage (5 means 5%). Supply falls from 1,200 to 1,120; demand remains fixed.

  1. 7%
  2. 5%
  3. 9%
  4. 3%
07. Money, The Central Bank, and Monetary Policies.pdf, pp. 7, 10; hypothetical model
20Which policy combination reinforces demand restraint in both channels?
  1. Central bank holds supply fixed; all private spending is assumed zero.
  2. Central bank reduces supply; government reduces purchases.
  3. Central bank reduces supply; government increases purchases by an unspecified amount.
  4. Central bank increases supply; government reduces taxes.
07. Money, The Central Bank, and Monetary Policies.pdf, pp. 7–10; 08. Fiscal Policies, International Market & Foreign Exchange Market.pdf, pp. 5–7
21What is the signed gap and the initial ΔG required in the supplied model?

Problem

Actual GDP=₱5,700bn and potential=₱6,000bn. Use signed gap=actual−potential. Supplied spending multiplier k=4; no price changes, imports, taxes, crowding out or other offsets. Potential remains fixed.

  1. Gap=−₱300bn; ΔG=+₱75bn.
  2. Gap=−₱300bn; ΔG=+₱1,200bn.
  3. Gap=−₱300bn; ΔG=+₱300bn.
  4. Gap=+₱300bn; ΔG=−₱75bn.
08. Fiscal Policies, International Market & Foreign Exchange Market.pdf, pp. 4, 7–8; supplied model
22What is the direct net expenditure change before induced rounds?

Problem

Changes in annual expenditure, ₱bn: ΔC=+10; ΔI=−30; ΔG=+100; ΔNX=−10. Calculate the direct sum only, before later behavioral rounds.

  1. +₱130 billion
  2. +₱100 billion
  3. +₱70 billion
  4. −₱70 billion
06. Macroeconomic Equilibrium.pdf, pp. 6–11; 08. Fiscal Policies, International Market & Foreign Exchange Market.pdf, p. 9
23What are the full chain total and induced part beyond the injection?

Problem

An additional government purchase is ₱900. Each recipient spends 75% of each extra receipt on additional domestic output indefinitely. Assume unchanged prices, available capacity and no other leakages or offsets.

  1. ₱3,600 total; ₱2,700 induced.
  2. ₱2,700 total; ₱1,800 induced.
  3. ₱900 total; ₱3,600 induced.
  4. ₱4,500 total; ₱3,600 induced.
08. Fiscal Policies, International Market & Foreign Exchange Market.pdf, p. 8; supplied infinite-chain extension
24Which national total follows from the stated bridge?

Problem

Domestic GDP=₱1,500bn. Factor/primary income receipts from abroad=₱70bn and income payments abroad=₱25bn. Use GNI/GNP=GDP+receipts−payments.

  1. ₱1,545 billion
  2. ₱45 billion
  3. ₱1,500 billion
  4. ₱1,455 billion
06. Macroeconomic Equilibrium.pdf, pp. 16, 20, 24; reviewer standard-boundary clarification
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