Economics MCQs

Page No. 397

A budgetary deficit means ?


aTotal expenditure is more than total revenue


bCurrent expenditure is more than current revenue


cCapital expenditure is more than capital revenue


dTotal expenditure is more than current revenue



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


a An increase in indirect taxes


bAn increase in managers salaries


cAn increase in progressive taxation


d An increase in the rate of inflation



Economic development ?


a Is the same as economic growth


bMeans improvement in lifestyle


cExists when there is equal distribution of income


dAll of the above



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


aInvestment


bSubsidies


c Taxation


d Consumption


View Answer Taxation

Consumption spending does not include ?


a Household’s purchases of food


b Households’ purchase of a car


c Household’s payment of rent for an apartment


dHousehold’s purchase of stock in any XYZ corporation



Net investment is___________________?


aGross investment minus household investment


bGross investment minus govt. Investment


cGross investment minus capital consumption allowance


d None of the above



GNP is_______________?


aTotal sales in the economy


bTotal monetary transactions in an economy


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


dTotal spending in an economy



We measure national income by this method ?


aExpenditure method


b Income method


cProduct method


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


bFall in employment due to declining production


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



What does price elasticity of demand measure ?


aChanges in price caused by changes in demand


bThe rate of change of sales


c The responsiveness of demand to price changes


dThe value of sales at a given price



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