miscellaneous MCQs – Page 61

Practise focused miscellaneous questions with marked answers for exam preparation and subject revision.

miscellaneous Mcqs
1201. Injections are?
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A. Decrease aggregate demand

B. Decrease the investment into an economy

C. Assumed to be exogenous

D. Assumed to be a function of national income

1202. An increase in national income is likely to ?
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A. causes an increase in injections into the economy

B. Decrease tax receipts

C. Worsen the balance of trade

D. Automatically cause an increase in government spending

1203. Open Market Operations occur when the government ?
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A. Reduces the interest rate

B. Increase the exchange rate

C. Increases taxation

D. Buys and sells bonds and securities

1204. In a free market the combination of products produced will be determined by ?
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A. The law

B. The government

C. Market forces of supply and demand

D. The public Sector

1205. To anticipate what the economy is going to do next the government will look at ?
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A. Lagging indicators

B. Flashing indicator

C. Leading indicators

D. Coincidental indicators

1206. In a recession, GDP ?
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A. Grows negatively

B. Grows rapidly

C. Grows slowly

D. Grows by 0%
1207. Assuming there is no government or foreign sector, if the MPC is 8 the multiplier is ?
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A. 5

B. 8

C. 2

D. 1.25

1208. An increase in the marginal propensity to consume will ?
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A. Increase the marginal propensity to save

B. increase the size of the multiplier

C. Decrease national income

D. Reduce injections into the economy

1209. If marginal product is below average product ?
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A. Average variable cost will fall

B. The total product will fall

C. The average product will fall

D. Total revenue will fall

1210. The marginal propensity to withdraw is ?
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A. MPS + MPT + MPM

B. 1-(1/injections multiplier

C. the proportion of national income that is withdraw from the circular flow of income

D. 1/investment multiplier

1211. Which of the following is FALSE? Scientific observation ?
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A. yields valid date with classification organization or recording

B. must proceed systematically

C. is open to anyone who wants to pursue it

D. must occur under controlled conditions

1212. Human life is acted out within a triangle of_______________?
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A. income safety and deference

B. rules roles and norms

C. society culture and the individual

D. class status and power

1213. A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work save and invest these economists are ?
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A. rational -expectations economists

B. New classical economists

C. supply side economists

D. neo-Keynesian economists

1214. Once a social scientist has formulated the hypothesis what is the next step of the scientific method ?
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A. Data analysis

B. Generalization

C. Developing a research design

D. Replication

1215. The double standard in the behavior of people in society is acknowledged by the existence of a(n)?
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A. overt and covert culture

B. moral and immoral culture

C. legal and illegal culture

D. ethical and unethical culture

1216. A significant increase in the government budget deficit is likely to ?
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A. Move the economy away from full employment

B. Reduce injections into the economy

C. Reduce national income

D. Boost aggregate demand

1217. The socially optimal rate of growth is ?
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A. Where the marginal social benefit = the marginal social cost

B. Zero

C. Negative

D. Total social costs are minimised

1218. An independent assessment of the impact of firms activities on society is called a ?
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A. Social audit

B. Profit and loss account

C. Financial audit

D. Balance sheet

1219. If injections are greater than withdrawals ?
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A. National income will stay in equilibrium

B. National income will increase

C. National income will decrease

D. Price will fall

1220. A deflationary policy could include ?
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A. Reducing government spending

B. Reducing taxation rates

C. Reducing interest rates

D. increasing injections