Quiz Bee Questions (Semis and Finals)

Semi-Final Round Easy Round 1. What is the decrease in the value of the domestic currency relative to the currencies of other countries when exchange rates are fixed? a. Appreciation b. Depreciation c. Revaluation d. Devaluation Reference: Macroeconomics by Dornbusch, Fischer and Startz 10 th edition Chapter 12 page 287 2.

What is the system in which exchange rates are allowed to fluctuate with the forces of supply and demand? a. Fixed Exchange Rate system b. Floating Exchange Rate system c. Pegged Exchange Rate system d. Bretton Woods system Reference: Macroeconomics by Dornbusch, Fischer and Startz 10 th edition Chapter 12 page 285 3.

Suppose that a spell of bad weather raises the price of wheat, a key ingredient of bread. This shifts the supply curve of bread to the right. a. True b. False Reference: Economics by Paul A. Samuelson and William Nordhaus 19 th ed, p55 4.

Which of the following is true about stagflation? a. Low Inflation and Low Unemployment b. Low Inflation and High Unemployment c. High Inflation and Low Unemployment d. High Inflation and High Unemployment Reference: Macroeconomics 10th edition by Dornbusch, Fischer and Startz Chapter 6 page 125 5.

With every additional unit of a particular good you consume, your marginal utility from each additional unit of the good decreases. a. True b. False Reference: Economics by Paul A. Samuelson and William Nordhaus 19 th ed, p85 Average Round 1. Given a marginal propensity to consume (MPC) of 3/4, what will be the multiplier? a. 1/4 or 0.25 b.

4 /3

or 1.33

c. 4 d. 10 Reference: Economics Principles by N. Gregory Mankiw Chapter 34 page 806 2.

What are the three main tools of the monetary policy? a. Open Market Operations, Interest Rate, Reserve Requirement b. Open Market Operations, Discount Rate, Reserve Requirement c. Close Market Operations, Interest Rate, Reserve Requirement d. Close Market Operations, Discount Rate, Reserve Requirement Reference: Economics Principles by N. Gregory Mankiw Chapter 29 page 669 3.

There exists such a good that as its price decreases, its quantity demanded also decreases. What is this good called? a. Superior Good b. Inferior Good c. Giffen Good d. Normal Good Reference: Intermediate Microeconomics by Hal Varian 8 th ed, p105

4.

Without government intervention, positive externalities lead the market to produce less than the socially optimal amount of a particular good? a. True b. False Reference: Economics Principles by Gregory Mankiw, p228 5.

What is the interest rate on the loans that the central bank makes to banks? a. Deposit rate b. Discount rate c. Inflation rate d. Reserve rate References: Economics Principles by N. Gregory Mankiw Chapter 29 page 670 Macroeconomics by Dornbusch, Fischer and Startz 10th edition Chapter 16-2 page 400 Difficult Round 1. Suppose the demand and supply of apples are given by the following equations: QD = 110 – 10P Qs = 10 +30P Where QD is quantity demanded for apples, Qs is quantity supplied for apples, and P is price per apple. Compute for the equilibrium quantity of apples. Q* = 85 2.

What is the theory of the determination of output and the overall price level holding that prices move proportionately with the money supply? Quantity Theory of Money Reference: Understanding the Economics of Money, Banking and Financial Markets by Mishkin page 495 3.

What is the revenue derived from the government’s ability to print money? Seigniorage Reference: Understanding the Economics of Money, Banking and Financial Markets by Mishkin Chapter 18 p 486 4.

What is the situation in which expansionary fiscal policy, such as increase in government spending, raises the interest rate and thereby reduces investment spending, as well as, aggregate demand? Crowding-out Effect Reference: Economics Principles by Mankiw Chapter 34 page 807 5.

Who is the current Socioeconomic Planning secretary and National Economic Development Authority (NEDA) director general? Arsenio Balisacan

Final Round First Phase (Point-Accumulation Phase) 1. Okun’s law states that 1 extra point of unemployment costs how many percent of GDP? a. 8% b. 4% c. 2% d. 1% Reference: Macroeconomics 10th edition by Dornbusch, Fischer and Startz Chapter 7 page 148 2.

What is the increase in the value of the domestic currency relative to the currencies of other countries when exchange rates are flexible? a. Appreciation b. Revaluation c. Depreciation d. Devaluation Reference: Economics Principles by N. Gregory Mankiw Chapter 31 page 719 Macroeconomics by Dornbusch, Fischer and Startz 10th edition Chapter 12 page 288 3.

What is the maximum willingness to pay of an individual? a. Market price b. Reservation price c. Discount price d. Interest price Reference: Intermediate Microeconomics by Hal Varian 8 th ed, p4

4.

What is the theory that the interest rate adjusts to bring money supply and money demand into balance? a. Theory of Liquidity Preference b. Quantity Theory of Money c. Neoclassical Growth Theory d. Purchasing-Power Parity Reference: Economics Principles by N. Gregory Mankiw Chapter 34 page 795 5.

A perfectly discriminating monopolist achieves an outcome that is Pareto inefficient. a. True b. False Reference: Economics by Paul A. Samuelson and William Nordhaus 19 th ed, p160 6.

What is the lost value to consumers and producers which are not captured by the levied tax? Deadweight Loss/Excess Burden Reference: Intermediate Microeconomics by Hal Varian 8 th ed, p306 7.

What do you call a person who receives the benefit of a public good but does not pay for it? Free-rider Reference: Economics Principles by Gregory Mankiw, p248 8.

What is the Net Domestic Product?

Gross Domestic Product (GDP) National Income Personal Income Net Factor Income from Abroad Depreciation Personal Taxes

₱ 1, 000, 000 500, 000 400, 000 300, 000 200, 000 100, 000

NDP = GDP-Depreciation = 800, 000 Reference: Economics Principles by Mankiw Chapter 23 page 529 Macroeconomics 10th edition by Dornbusch, Fischer and Startz Chapter 2-1 page 23 9.

Who is the current governor of the Bangko Sentral ng Pilipinas (BSP)? Amando Tetangco Jr.

10. Suppose that the price of a certain commodity is ₱ 10 and the corresponding quantity demanded is 200 units. For some reasons, the price per unit was increased to ₱ 15. As a result, quantity demanded declined to 100 units. Find the price elasticity of demand using the midpoint method. e=5/3 or 1.67 Reference: Economic Principles by Gregory Mankiw, p116 Second Phase (Betting Phase) 1. What is the graph showing the trade-off between unemployment and inflation? Phillips Curve Reference: Macroeconomics 10th edition by Dornbusch, Fischer and Startz Chapter 6 page 120 2.

What type of unemployment can result from a fundamental mismatch between the jobs available and the skill level of the unemployed? Structural Unemployment Reference: Economics Principles by Mankiw Chapter 28 page 638 3.

What is the increase in consumption for each unit increase in disposable income? Marginal Propensity to Consumer (MPC) Reference: Macroeconomics 10th edition by Dornbusch, Fischer and Startz Chapter 9 page 196 4.

What is a theory of exchange rates whereby a unit of any given currency should be able to buy the same quantity of goods in all countries? Purchasing-Power Parity Reference: Economics Principles by N. Gregory Mankiw Chapter 31 page 723 Macroeconomics by Dornbusch, Fischer and Startz 10th edition Chapter 12 page 289 5. What is the unemployment rate? Population of working age

60 000 000

Employed 30 000 000 Unemployed 10 000 000 Not in labor force 20 000 000 UR = U/LF = 25% Reference: Economics Principles by Mankiw Chapter 28 page 631 6.

Given an inflation rate of 3%, unemployment rate of 4%, and real interest rate of 5%, what is the nominal interest rate? 8% Reference: Economics Principles by N. Gregory Mankiw Chapter 24 page 556 7. 8.

Who is the new Federal Reserve system (Fed) chair of the United States? Janet Louise Yelen Who is this 19th century Bristish economist who proposed the Theory of Comparative advantage? David Ricardo 9. The Asian economic crisis of 1997 started with the collapse of what currency? Thai Baht 10. What is the annual GDP growth rate of the Philippines for 2013? 7.2%

Clincher Round: 1.

What is the opportunity cost of holding money? Interest rate Reference: Economics Principles by N. Gregory Mankiw Chapter 34 page 797 2.

What type of good is used to produce other goods or services? Intermediate Good Reference: Macroeconomics 10th edition by Dornbusch, Fischer and Startz Chapter 2 page 36 3.

What is the hypothetical long-run rate of unemployment around which the actual unemployment rate fluctuates? Natural Rate of Unemployment Reference: Economics Principles by Mankiw Glossary 4.

All kinds of taxes are distortionary and move the allocation of resources away from the socially optimum. False Reference: Economics Principles by Gregory Mankiw, p231