Economics MCQs

Page No. 380

Two of the major factors contributing to growth are ?


a resources and efficiency

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b money and efficiency

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cmoney and luck

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d. resources and a good climate

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The underground economy consists of ?


alegal transactions

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bpart of the rail network

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c legal transactions not declared for tax and illegal activities

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d the water distribution system

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Equilibrium in the circular flow of income occurs when ?


a Injections = withdrawals

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bThere is a Bank Holiday

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cInjections withdrawals

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dNone of these

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Total withdrawals from the circular flow of income include ?


a consumption savings and taxes

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bsavings government expenditure and imports

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csavings taxes and exports

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d savings taxes and imports

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According to the classical economists, the only gainers from growth would be ?


alandlords

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b peasants

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c. The army

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dpoliticians

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View Answer landlords

Indicate below what is NOT a main macroeconomic goal ?


aIncreasing North Sea oil production

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bReducing unemployment

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cAchieving a sustainable rate of economic growth

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dReducing inflation

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View Answer Reducing unemployment

It has become conventional classify a recession as a period where national output falls for _________ or more?


athree years

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bsix months

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ca year

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dtwo years

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View Answer six months

The index used most often to measure inflation is the?


awholesale price index (WPI)

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b. GDP deflator

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cProducer price index (PPI)

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dconsumer price index

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View Answer consumer price index

The percentage of the labor force that is unemployed is the ?


aunemployment rate

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b labor force rate

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c employment rate

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dunemployment population ratio

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View Answer unemployment rate

The diagram that shows the income received and payments made by each sector of the economy is the ?


a income-expenditures diagram

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b. aggregate demand-aggregate supply diagram

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c circular flow diagram

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d. income-price diagram

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View Answer circular flow diagram

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