Economics MCQs

Page No. 397

A budgetary deficit means ?


aTotal expenditure is more than total revenue

✓


bCurrent expenditure is more than current revenue

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cCapital expenditure is more than capital revenue

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dTotal expenditure is more than current revenue

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Which is most likely to cause a more even distribution of income ?


a An increase in indirect taxes

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bAn increase in managers salaries

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cAn increase in progressive taxation

✓


d An increase in the rate of inflation

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Economic development ?


a Is the same as economic growth

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bMeans improvement in lifestyle

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cExists when there is equal distribution of income

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dAll of the above

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Which of the following is a withdraw from the circular flow income stream ?


aInvestment

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bSubsidies

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c Taxation

✓


d Consumption

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View Answer Taxation

Consumption spending does not include ?


a Household’s purchases of food

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b Households’ purchase of a car

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c Household’s payment of rent for an apartment

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dHousehold’s purchase of stock in any XYZ corporation

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Net investment is___________________?


aGross investment minus household investment

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bGross investment minus govt. Investment

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cGross investment minus capital consumption allowance

✓


d None of the above

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GNP is_______________?


aTotal sales in the economy

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bTotal monetary transactions in an economy

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cThe market value of all goods and services produced in an economy

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dTotal spending in an economy

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We measure national income by this method ?


aExpenditure method

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b Income method

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cProduct method

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dAll of the above

✓


View Answer All of the above

What is the meaning of the term stagflation ?


aFall in prices due to less circulation of currency

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bFall in employment due to declining production

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c High inflation rate combined with high unemployment and unchanged consume demand High inflation rate combined with high unemployment and unchanged consume demand

✓


d None of these

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What does price elasticity of demand measure ?


aChanges in price caused by changes in demand

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bThe rate of change of sales

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c The responsiveness of demand to price changes

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dThe value of sales at a given price

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