Economics MCQs

Page No. 380

Two of the major factors contributing to growth are ?


a resources and efficiency


b money and efficiency


cmoney and luck


d. resources and a good climate



The underground economy consists of ?


alegal transactions


bpart of the rail network


c legal transactions not declared for tax and illegal activities


d the water distribution system



Equilibrium in the circular flow of income occurs when ?


a Injections = withdrawals


bThere is a Bank Holiday


cInjections withdrawals


dNone of these



Total withdrawals from the circular flow of income include ?


a consumption savings and taxes


bsavings government expenditure and imports


csavings taxes and exports


d savings taxes and imports



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


alandlords


b peasants


c. The army


dpoliticians


View Answer landlords

Indicate below what is NOT a main macroeconomic goal ?


aIncreasing North Sea oil production


bReducing unemployment


cAchieving a sustainable rate of economic growth


dReducing inflation


View Answer Reducing unemployment

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


athree years


bsix months


ca year


dtwo years


View Answer six months

The index used most often to measure inflation is the?


awholesale price index (WPI)


b. GDP deflator


cProducer price index (PPI)


dconsumer price index


View Answer consumer price index

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


aunemployment rate


b labor force rate


c employment rate


dunemployment population ratio


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


b. aggregate demand-aggregate supply diagram


c circular flow diagram


d. income-price diagram


View Answer circular flow diagram

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