Economics MCQs

Page No. 282

A deflationary policy could include ?


aincreasing injections

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bReducing taxation rates

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cReducing interest rates

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dReducing government spending

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Injections are?


aAssumed to be exogenous

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bAssumed to be a function of national income

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cDecrease aggregate demand

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dDecrease the investment into an economy

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


aReduce injections into the economy

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bReduce national income

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cMove the economy away from full employment

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dBoost aggregate demand

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Injections ?


a Decrease aggregate demand

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bAlways equal savings

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cAlways equal national income

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dinclude investment and export spending

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


a Financial audit

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b Balance sheet

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cProfit and loss account

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dSocial audit

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View Answer Financial audit

If the marginal revenue is Positive ?


aSelling another unit will increase total revenue

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bSelling another unit will increase profits

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cSelling another unit will increase costs

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dSelling another unit will increase average revenue

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To be Productively efficient a firm must produce where ?


aMarginal costs are maximized

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bMarginal costs are Minimized

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cAverage costs are minimized

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dAverage costs are maximized

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When marginal revenue equals marginal cost ?


aTotal revenue equals total cost

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

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

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dProfits are Zero

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


aAverage revenue equals marginal cost

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bAverage revenue equals average cost

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cMarginal revenue equals marginal cost

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dAverage cost equals marginal cost

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If the price elasticity is -0.3 this means ?


a Demand is upward sloping

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bDemand is price elastic

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cA price fall would increase revenue

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dDemand is price inelastic

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