Question 1 of 20 4,545 total questions
In the national income and product accounts, double counting is avoided if?
A only final goods counted
B only intermediate goods are counted
C only intermediate and final goods are counted
D the value of all goods and services are added together
The Gross Domestic Product is defined as the total value of?
A all final goods and services produced in a country during the year
B all assets of a country in a particular year
C exports net of total value of imports
D all receipts
It is important to measure the National Income of a country because?
A it is a major determinant of the standard of living
B it reveals hazards of development like pollution and congestion
C it reveals the distribution of the citizen's savings in foreign banks
D its size determines the extent of political stability
The age distribution of a country's population is of economic importance because it affects the?
A pattern of expenditure
B size of the army
C optimum size of firms
D location of industries
The higher the the dependency ratio the?
A larger the proportion of the employed relative to the unemployed
B smaller the proportion of the active labour force relative to the inactive
C smaller the number of the non-working age groups relative to the active labour force
D lower the birth rate
Under flexible exchange rates, a deficit could be corrected by?
A freezing the gold point
B appreciation of other currencies
C removing export subsidies
D removing tariffs
there is an improvement in the terms of trade of a country if?
A a large quantity of exports is given up to obtain a unit of imports
B the volume of exports is greater than the volume of imports
C a smaller quantity of exports is given up to obtain a unit of imports
D the value of exports is greater than the value of imports
One of the advantages of international trade is that it?
A increases world output
B encourages economic independence among nations
C restricts spread of technical knowledge
D promotes self-reliance and satisfaction with only what can be produced internally
Personal distribution of income implies?
A the way in which income is distributed among specific households or spending units
B the distribution of income according to basic resources
C dividing income according to industries
D dividing income between personal taxes, consumption expenditures and savings
The average tax rate is defined as
A total tax rate less the marginal tax rate
B the tax rate which applies to additional value income
C the ratio of total taxes paid to total income
D marginal tax rate for being progressive
Budget deficit is the amount by which?
A total expenditure exceeds revenue
B recurrent expenditure exceeds revenue
C capital expenditure exceeds revenue
D recurrent expenditure exceeds capital expenditure
A tax that takes an increasing fraction of income as income goes down is called?
A conditional
B regressive
C progressive
D proportional
The term 'Stock of Capital 'means?
A amount of money necessary to start a business
B total amount receivable by all factors of production
C amount of equipment plant and inventory existing at a time
D total amount available for economic development
Banks aid economic expansion and development by?
A being very strict in lending policies
B mobilizing savings for investment lending
C paying interest on deposit accounts
D charging high interest on loans
An effect of inflation is that it?
A discourages trade by barter
B favours debtors at the expense of creditors
C increases the real income of salary earners
D increases the value of a country's exports
Fiduciary issue is that part of?
A the issue of notes backed entirely by gold
B a country's currency which is not negotiable
C the issue of notes not backed by gold
D a country's currency officially issued
To perform its function as a store of wealth and standard for deferred payment, money must be
A portable
B in attractive form
C stable in value
D spent more on capital goods than on consumer goods
One of the functions of Development Banks is to
A mint money for the development of the economy
B provide short-term loans to commercial banks
C provide medium and long-term finance for the development of the banking system
D provide medium and long-term finance for the development of the economy
One disadvantage of trade by barter is that?
A people are happier when they exchange the same quantities of goods through the medium of money rather than by barter
B the person wishing to buy good X may not have good Y which is what the other wants
C one person must always be cheated when trade takes place by barter
D it increases the intial cost of producing goods
Industries tend to be located closer to market centers than to the sources of major raw materials if the?
A products are relatively cheap to transport to market centers
B products are relatively more expensive to transport than the major raw materials
C raw marterials are bulky
D raw marterials can also be imported
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