Free Fundamentals of Business Economics Practice Questions

A.  

A tax which rises proportionately with income

B.  

A tax which rises more than proportionately with income

C.  

A tax which rises less than proportionately with income

D.  

A tax on expenditure

A.  

The IMF

B.  

The World Bank

C.  

The World Trade Organization

D.  

The G20

A.  

The government's budget deficit will increase

B.  

The aggregate demand curve will shift to the right

C.  

The initial change in government spending may lead to a larger impact upon the economy

D.  

An expansionary monetary policy is being pursued

A.  

Governments always regard control of inflation as the most important policy objective

B.  

Conflicts between objectives mean that macroeconomic policy can never be regarded as successful

C.  

Expanding demand to reduce unemployment may mean that the balance of payments worsens

D.  

The pursuit of economic growth inevitably increases unemployment

A.  

Aggregate supply curve moving to the right

B.  

Aggregate supply curve moving to the left

C.  

Aggregate demand curve moving to the right

D.  

Aggregate demand curve moving to the left

A.  

Interest rates will tend to fall, thus reducing business costs.

B.  

Inflation will fall and thus demand in the economy will expand.

C.  

Consumer credit will contract thus reducing consumer demand.

D.  

The exchange rate will fall thus making business more internationally competitive.

A.  

injections are greater than withdrawals

B.  

injections are equal to withdrawals

C.  

injections are equal to savings

D.  

injections plus withdrawals are equal to savings plus investment

A.  

Depend more and more on their domestic markets.

B.  

Have to raise more capital from internal sources.

C.  

Have less need to increase their international competitiveness.

D.  

Be more and more affected by changes in exchange rates.

A.  

cut public expenditure, reduce taxes, and lower interest rates

B.  

raise public expenditure, reduce taxes and lower interest rates

C.  

raise public expenditure, raise taxes and lower interest rates

D.  

cut public expenditure, raise taxes and raise interest rates

A.  

A fall in consumer incomes in the country.

B.  

An improvement in the country's terms of trade.

C.  

A depreciation in the exchange rate for the country's currency.

D.  

A rise in the rate of inflation in its trading partners' economies.