Economics MCQs

Page No. 282

A deflationary policy could include ?


aincreasing injections


bReducing taxation rates


cReducing interest rates


dReducing government spending



Injections are?


aAssumed to be exogenous


bAssumed to be a function of national income


cDecrease aggregate demand


dDecrease the investment into an economy



A significant increase in the government budget deficit is likely to ?


aReduce injections into the economy


bReduce national income


cMove the economy away from full employment


dBoost aggregate demand



Injections ?


a Decrease aggregate demand


bAlways equal savings


cAlways equal national income


dinclude investment and export spending



An independent assessment of the impact of firm’s activities on society is called a ?


a Financial audit


b Balance sheet


cProfit and loss account


dSocial audit


View Answer Financial audit

If the marginal revenue is Positive ?


aSelling another unit will increase total revenue


bSelling another unit will increase profits


cSelling another unit will increase costs


dSelling another unit will increase average revenue



To be Productively efficient a firm must produce where ?


aMarginal costs are maximized


bMarginal costs are Minimized


cAverage costs are minimized


dAverage costs are maximized



When marginal revenue equals marginal cost ?


aTotal revenue equals total cost


bThere is the biggest positive difference between total revenue and total cost


cThere is the biggest negative difference between total revenue and total cost


dProfits are Zero



To maximise growth without making a loss a firm should produce the highest output where ?


aAverage revenue equals marginal cost


bAverage revenue equals average cost


cMarginal revenue equals marginal cost


dAverage cost equals marginal cost



If the price elasticity is -0.3 this means ?


a Demand is upward sloping


bDemand is price elastic


cA price fall would increase revenue


dDemand is price inelastic



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