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Viewing questions 31-40 out of questions
Questions # 31:

All of the following could cause the onset of a recession except which one?

Options:

A.

A significant appreciation of the exchange rate

B.

A decline in business investment

C.

A significant fall in personal savings rates

D.

An increase in the government budget deficit

Questions # 32:

All of the following items would appear as a credit on the current account of a country's balance of payments accounts except which one?

Options:

A.

Interest payments on financial assets held overseas.

B.

Exports of manufactured goods.

C.

Outflows of capital.

D.

Expenditure by visiting foreign tourists.

Questions # 33:

In the aggregate supply and demand model, a significant rise in the cost of energy for industry would lead to the

Options:

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

Questions # 34:

Which of the following statements best describes a private firm?

Options:

A.

An organization that does not seek profit

B.

An organization that is owned by shareholders

C.

An organization that is outside the state's influence

D.

An organization that is not directly owned by the state

Questions # 35:

All of the following are objectives of not-for-profit organizations except one. Which ONE is the exception?

Options:

A.

Value for money

B.

Maximization of financial surpluses

C.

Serving the public interest effectively

D.

Efficient use of physical and human resources

Questions # 36:

Which of the following statements about supply-side economics is correct?

Options:

A.

Supply-side policies are part of aggregate demand management policies.

B.

Fiscal policy cannot be used as a part of supply-side policy

C.

Supply-side economists always reject the use of policy to expand demand

D.

Supply-side policies are used to improve the economy's efficiency and competitiveness

Questions # 37:

Which of the following is not taken into account by the discount factor applied to future earnings when calculating shareholder value?

Options:

A.

Shareholders rate of time preference for money

B.

The amount of earnings that will be lost as taxation

C.

The amount of risk the investment is subject to

D.

The rate of inflation

Questions # 38:

Which of the following would result from a depreciation in the exchange rate for a country's currency?

i. A fall in the foreign exchange price of that country's exports.

ii. A rise in the foreign exchange price of that country's imports.

iii. A rise in production costs for businesses using imported inputs.

iv. A worsening in that country's terms of trade.

v. A fall in the domestic prices of that country's imports.

vi. A rise in the domestic price of that country's exports.

Options:

A.

(i), (ii) and (iv) only

B.

(i), (iii) and (iv) only

C.

(ii), (v) and (vi) only

D.

(iv), (v) and (vi) only

Questions # 39:

Which one of the following would raise both national income and disposable income ?

Options:

A.

An increase in transfer payments

B.

A reduction in rates of personal income tax

C.

An increase in business profits

D.

A rise in the rates of personal income tax

Questions # 40:

Which of the following assertions would not be consistent with supply side economics?

Options:

A.

Lower taxation increases national income by reducing disincentives to work and invest

B.

High interest rates may reduce investment expenditure and so harm national income growth

C.

Increasing aggregate demand will not affect national income or the price level

D.

Aggregate supply creates its own demand

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