What decisions are taken in monetary policy?
Rate of interest and supply of money
Exploitation of natural resources
Exchange rate fixation
Monetary norms of a country
Name the type of unemployment resulting from low demand for goods and services in the economy during periods of recession.
Cyclical unemployment
Seasonal unemployment
Disguised unemployment
Frictional unemployment
Match the following.Higher real GDP in case of high GDPHigher level of employment if growth is substantial and benefits are equally distributedAbsolute poverty can be reduced increase the living standardMore resources will be available to government increases consumer income
1 2 3 4
i ii iv iii
1 2 3 4 iii ii iv i
1 2 3 4 iv ii iii i
1 2 3 4 iii iv ii i
Name the account which records the value of trade in goods and services between one country and the rest of the world.
Capital account
Balance sheet
Unilateral account
Balance of payments
How will high interest rates affect business activities?
Encourage borrowing and investment.
Encourage business to invest more in venture capital.
Discourage business from borrowing and investment.
Cost of borrowing becomes cheaper.
Exchange rates are determined by which factors?
Technology used in production
Comparative cost advantage of each country
Forces of demand and supply of currencies
The government plays a leading role in fixing exchange rates.
From the following options, which is not an economic objective of government?
High inflationary pressures should be ignored
Low rate of unemployment
Balance between imports and exports
Attaining exchange rate stability
When there is a depreciation of currency who are considered as the winners?
Home based exporters
Importers of materials, components etc.
Retailers that purchase foreign supplies
Firms operating in Special Economic Zones.
Inferior goods' income-elasticity vary differently, how?
It is positive and between 0 and 1.
It is negative
It is positive and greater than 1
It is having zero elasticity.
What do you call a situation when taxation revenue exceeds the value of government spending?
Government excess revenue
Government Budget Deficit
Government Budget Revenue
Government Budget Surplus
