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MCQs

Total Questions : 434 | Page 4 of 44 pages
Question 31. Net investment is___________________?
  1.    Gross investment minus household investment
  2.    Gross investment minus govt. Investment
  3.    Gross investment minus capital consumption allowance
  4.    None of the above
 Discuss Question
Answer: Option C. -> Gross investment minus capital consumption allowance
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 32. Consumption spending does not include ?
  1.    Household’s purchases of food
  2.    Households’ purchase of a car
  3.    Household’s payment of rent for an apartment
  4.    Household’s purchase of stock in any XYZ corporation
 Discuss Question
Answer: Option D. -> Household’s purchase of stock in any XYZ corporation
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 33. What would reduce the role of central planning in a economy ?
  1.    Increasing government spending
  2.    Increasing public ownership of firms
  3.    Increasing the role of markets
  4.    Removing the profit motive
 Discuss Question
Answer: Option C. -> Increasing the role of markets
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 34. GNP is_______________?
  1.    Total sales in the economy
  2.    Total monetary transactions in an economy
  3.    The market value of all goods and services produced in an economy
  4.    Total spending in an economy
 Discuss Question
Answer: Option C. -> The market value of all goods and services produced in an economy
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 35. What does price elasticity of demand measure ?
  1.    Changes in price caused by changes in demand
  2.    The rate of change of sales
  3.    The responsiveness of demand to price changes
  4.    The value of sales at a given price
 Discuss Question
Answer: Option C. -> The responsiveness of demand to price changes
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 36. What is the meaning of the term stagflation ?
  1.    Fall in prices due to less circulation of currency
  2.    Fall in employment due to declining production
  3.    High inflation rate combined with high unemployment and unchanged consume demand
  4.    None of these
 Discuss Question
Answer: Option C. -> High inflation rate combined with high unemployment and unchanged consume demand
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 37. Transfer payments means ?
  1.    Bank loans
  2.    The payment without work
  3.    Tax payments
  4.    Payments made to all factors of production
 Discuss Question
Answer: Option B. -> The payment without work
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 38. We measure national income by this method ?
  1.    Expenditure method
  2.    Income method
  3.    Product method
  4.    All of the above
 Discuss Question
Answer: Option D. -> All of the above
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 39. The standard of living in a country is represented by its ?
  1.    National income
  2.    Per capita income
  3.    Poverty ratio
  4.    None of these
 Discuss Question
Answer: Option B. -> Per capita income
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 40. A tax which is paid by the person on whom the tax is incident is called a ?
  1.    Local tax
  2.    Indirect tax
  3.    Direct tax
  4.    Rate
 Discuss Question
Answer: Option C. -> Direct tax
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

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