DMC COLLEGE FOUNDATION

Sta. Filomena, Dipolog City

2nd Semester 2016 - 2017

SCHOOL OF BUSINESS AND ACCOUNTANCY

HIGHER EDUCATION DEPARTMENT Economics 3

FINAL EXAMINATION (SPECIAL CLASS) Earl Russell S. Paulican,REB

NAME: ___________________________________________ SCORE: _______________________

COURSE/YEAR: ______________________________ DATE : _____________________

Commit to the Lord whatever you do, and your plans will succeed
Proverbs 16:3

Test I. IDENTIFICATION. FILL IN THE BLANKS WITH THE CORRECT ANSWERS. (2 Points Each)
1. The measurement of aggregate economic activity, particularly national income and its
components.
2. The total market value of all final goods and services produced within a nations borders in
a given time period.
3. Total GDP divided by total population or the average GDP.
4. Goods and services purchased for use as input in the production of final goods or services.
5. The value of final output produced in a given time period, measured in the prices of that
period (current price).
6. The value of final output produced in a given period, adjusted for changing prices.
7. An increase in the average level of prices of goods and services.
8. The consumption of capital in the production process; the wearing out of plant and
equipment.
9. GDP less depreciation.
10. Goods and services sold to international buyers.
11. Goods and services purchased from international sources.
12. The value of exports minus the value of imports.
13. Total income earned by current factors of production; GDP less depreciation and indirect
business taxes.
14. Income received by households before payment of personal taxes.
15. After-tax-income of households; personal income less personal taxes.
16. That part of disposable income not spent on current consumption; disposable income less
consumption.
17. All persons over the age of 18 who are either working for pay or actively seeking paid job
employment.
18. The inability of the labor-force participants to find jobs.
19. The proportion of the labor force that is unemployed.
20. 1 percent unemployment is estimated to equal to 2 percent less output.
21. An individual who isnt actively seeking employment but would look for or accept a job if
one were available.
22. People seeking full-time paid employment who work only part time or are employed at
jobs below their capability.
23. Unemployment due to seasonal changes in employment or labor supply.
24. Unemployment caused by a mismatch between the skills or location of job seekers and the
requirements of available jobs.
25. Unemployment attributable to a lack of job vacancies, that is, to an inadequate level of
aggregate demand.
26. The lowest rate of unemployment compatible with price stability; variously estimated at
between 4 percent to 6 percent unemployment.
27. Gap between skills required for emerging jobs and the skills of workers.
28. A decrease in the average level of prices of goods and services.
29. The price of one good in comparison with the price of other goods.
30. The amount of money income received in a given time period, measured in current peso.

Prepared by: Earl Russell S. Paulican , REB GOD Bless

Test II. Problem Solving. (20 points)

Nominal GDP of the Year 2014= 480 M

Nominal GDP of the Year 2015 = 550 M
Change in price level from 2013 to 2014= 7%
Change in price level from 2014 to 2015 = 5%

Compute for:

a.) Real GDP of 2015 using 2014 as the base period.

b.) Real GDP of 2014 using 2013 as the base period.

-Success is a Choice, not a Destiny-

_keep on dreaming_

Prepared by: Earl Russell S. Paulican , REB GOD Bless