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English I
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English II
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Question-1
A government might use tax to
(A)
Discourage consumption of goods with positive externalities
(B)
Discourage consumption of merit goods
(C)
Discourage consumption of public goods
(D)
Discourage consumption of goods with negative externalities
Question-2
A outside shift in the demand for money other things being equal should lead to
(A)
A lower interest rate but the same quantity of money
(B)
A higher interest rate but the same quantity of money
(C)
A higher quantity of money but lower interest rates
(D)
A higher quantity of money but the same interest rate
Question-3
Fiscal drag occurs when
(A)
Tax bands do not increase with inflation
(B)
Tax rates move inversely with inflation
(C)
Government spending falls to reduce aggregate demand
(D)
Tax bands increase with inflation
Question-4
The liquidity trap occurs when the demand for money
(A)
Is perfectly interest elastic
(B)
Is perfectly interest inelastic
(C)
Means that an increase in money supply leads to a fall in the interest rate
(D)
Means that an increase in the money supply leads to an increase in the interest rate
Question-5
A fall in interest rates is likely to
(A)
Increase aggregate demand
(B)
Increase savings
(C)
Decrease consumption
(D)
Decrease exports
Question-6
A budget deficit is likely to
(A)
Boost aggregate demand
(B)
Lead to less import spending
(C)
Lead to falling prices
(D)
Leads to more unemployment
Question-7
Occupational immobility of labour occurs if
(A)
People lack information
(B)
People do not want to work
(C)
People do not have the right skills to accept a new job
(D)
People cannot afford to move location
Question-8
A reflationary fiscal policy could include
(A)
Lower interest rate
(B)
Increased lending by the banks
(C)
An increase in corporation tax
(D)
An increase in discretionary government spending
Question-9
Supply side policies are most appropriate to cure
(A)
Involuntary unemployment
(B)
Cyclical unemployment
(C)
Voluntary unemployment
(D)
A fall in aggregate demand
Question-10
The marginal rate of tax paid is
(A)
The total tax paid/ total income
(B)
Total income/ total tax paid
(C)
Change in the tax paid/ change in income
(D)
Change in income/ change in tax paid
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Std 10
ICSE/ISC
Practice in Related Chapters
Alternative Market Structure: Basic Concepts
Demand and Supply: Basic Concepts
The Productive Mechanism
State and Economic Development
Money and Banking: Basic Concept
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