Economics Test 7
Total Questions: 51
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A ) Government pensioners
B ) Creditors
C ) Savings Bank Account holders
D ) Debtors ✅
A ) Debtors
B ) Creditors ✅
C ) Business class
D ) Holders of real assets
A ) Rise in budget deficit
B ) Rise in money supply
C ) Rise in general price index ✅
D ) Rise in prices of consumer goods
A ) Hyperinflation
B ) Galloping inflation
C ) Stagflation ✅
D ) Reflection
A ) 15% fall in production of industrial goods
B ) 15% increase in prices of agricultural products
C ) 15% increase in supply of money in the market? ✅
D ) None of these
A ) Increased in wages
B ) Decrease in money supply
C ) Decrease in tax ✅
D ) None of these
A ) Fall in production
B ) Increase in prices ✅
C ) Absence of black market
D ) Presence of black market
A ) Money ✅
B ) Government Bonds
C ) Equity
D ) Time deposits with Banks
A ) Stagnation
B ) Take-off stage in economy
C ) Stagflation ✅
D ) None of these
A ) Galloping inflation
B ) Recession plus inflation ✅
C ) Adverse balance of trade
D ) Rising wages and employment
A ) Inflation ✅
B ) Devaluation
C ) Deflation
D ) Demonetisation
A ) Demand-pull inflation ✅
B ) Cost-push inflation
C ) Stagflation
D ) Structural inflation
A ) Better capacity utilization
B ) Lowering bank rate ✅
C ) Reducing budgetary deficit
D ) An efficient public distribution system
A ) Inflation
B ) Hyper-inflation ✅
C ) Deflation
D ) Disinflation
A ) Exceed of Aggregate Demand over Aggregative Supply at the full employment level ✅
B ) Gap between galloping Inflation and Runaway Inflation
C ) Inflation coupled with recession
D ) Inflation that usually prevails in a developing country
A ) Increase in money supply
B ) Fall in production
C ) Increase in money supply without a corresponding increase in production ✅
D ) Decrease in money supply without a corresponding decrease in production
A ) Increase in money supply
B ) Increase in indirect taxation ✅
C ) Increase in population
D ) Increase in non-plan expenditure
A ) Converting rupee into gold
B ) Lowering of the value of one currency in comparison of some foreign currency ✅
C ) Making rupee dearer in comparison to some foreign currency
D ) None of these
A ) Money lenders
B ) Central Bank ✅
C ) Private entrepreneurs
D ) Government policy
A ) Counterfeit currency
B ) Illegally earned money
C ) Money earned through underhand deals
D ) Income on which payment of tax is usually evaded ✅
A ) Which can hardly be used for international transactions
B ) Which is used in times of war
C ) Which loses its value very fast
D ) Traded in foreign exchange market for which demand is persistently relative to the supply ✅
A ) Educating public opinion in member countries
B ) Introduction of the idea of sustainable development in relation to the optimal use of world's resource
C ) Securing a better share of growth in international trade for developing countries ✅
D ) The political will of the member nations
A ) Certificate issued by a Company promising the payment of a specified amount at a fixed rate of interest after a specified period promising the ✅
B ) Certificate for the investment in shares
C ) Certificate for the preference share
D ) Dividend warrant
A ) Capital ✅
B ) Interest
C ) Profit
D ) Rent
A ) A bank loan
B ) A bank overdraft
C ) An issue of shares on the Stick Exchange ✅
D ) Retained profits
A ) It will fall by 20%
B ) It will fall to zero.
C ) It will remain unchanged
D ) It will rise by 20%. ✅
A ) After tax
B ) Allowing for change in prices. ✅
C ) Plus benefits in kind.
D ) Plus overtime payments.
A ) Interest
B ) Profit ✅
C ) Rent
D ) Wages
A ) A fall in income
B ) A rise in interest rates ✅
C ) Fewer tax-free saving schemes
D ) Greater availability of consumer goods
A ) A decrease in the cost of production
B ) A decrease in total expenditure
C ) An increase in productivity
D ) An increase in the average wage level ✅
A ) Average fixed costs will fall. ✅
B ) Average total costs will fall.
C ) Average variable costs will fall.
D ) Total costs will fall.
A ) It is paid by a higher proportion of high income earners.
B ) It is paid by a higher proportion of low income earners.
C ) It takes a higher proportion from high incomes.
D ) It takes a higher proportion from low incomes. ✅
A ) The balance of visible trade
B ) The balance of invisible trade
C ) The balance on the current account
D ) The balance of payments ✅
A ) Taiwan's invisible earnings will increase ✅
B ) Taiwan's visible imports will decrease
C ) The Czech invisible trade balance will improve
D ) The Czech terms of trade will improve.
A ) An increase in imports
B ) A rise in the national debt
C ) A rise in the rate of interest
D ) A rise in retail prices ✅
A ) Population structure will remain the same
B ) Population will increase ✅
C ) The standard of living will increase
D ) There will be Change in the proportion of men to women.
A ) Embargoes
B ) Foreign exchange controls
C ) Quotas
D ) Tariffs ✅
A ) Acting as bankers to the government
B ) Advising the government on monetary policy
C ) Dealing in foreign exchange ✅
D ) Fixing the main interest rate
A ) Consumers demand
B ) Labour productivity
C ) Profit
D ) Unemployment ✅
A ) A fall in living standards
B ) A more youthful population
C ) An ageing population ✅
D ) An increase in population
A ) Birth rate ✅
B ) GDP per head
C ) Life expectancy
D ) Net investment per head
A ) It has a high level of savings.
B ) It has a highly developed infrastructure
C ) It has exports which are low in value. ✅
D ) It has highly levels of capital investment.
A ) To encourage self-sufficiency
B ) To protect a growing domestic industry
C ) To raise government revenue
D ) To raise the general price level within the economy ✅
A ) External
B ) Fixed costs ✅
C ) Marginal costs
D ) Variable costs
A ) Increasing government spending
B ) Increasing public ownership of firms
C ) Increasing the role of markets ✅
D ) Removing the profit motive
A ) Budget for a surplus
B ) Cut taxes ✅
C ) Encourage savings
D ) Reduce its expenditure
A ) Changes in Price caused by changes in demand
B ) The rate of change of sales
C ) The responsiveness of demand to price changes ✅
D ) The value of sales at a giv n price
A ) Diversification
B ) Horizontal integration ✅
C ) Monopoly
D ) Vertical integration
A ) Increasing bank lending
B ) Increasing import duties
C ) Reducing government expenditures ✅
D ) Reducing direct taxation
A ) An increased inflow of foreign investment
B ) Increased government spending
C ) Lower income tax
D ) Lower interest rates
A ) The currency exchange rate
B ) The difference between the value of visible exports and visible imports
C ) The government policies to increase exports
D ) The rate at which exports are exchanged for imports ✅