Smartindia Classroom
CONTENTS
English I
Computer Application
Physics
Chemistry
Biology
Mathematics
History
Geography
Economics(optional)
Commercial Application
Civics
English II
Back to home
Start Practice
Question-1
Open market operations occur when the government
(A)
Reduces spending
(B)
Buys and sells bonds and securities
(C)
Increases taxation
(D)
Increases the exchange rate
Question-2
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-3
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-4
If there is cyclical unemployment in the economy the government might
(A)
Increase interest rates
(B)
Encourage savings
(C)
Cut taxes
(D)
Reduce government spending
Question-5
The precautionary demand for money is
(A)
An idle balance
(B)
An active balance
(C)
Directly related to interest rates
(D)
Inversely related to income
Question-6
In a regressive tax system
(A)
The amount of tax paid increases with income
(B)
The average rate of tax decreases with more income
(C)
The average rate of tax falls as income increases
(D)
The average rate of tax is constant as income increases
Question-7
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-8
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
Question-9
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-10
Supply side policies are most appropriate to cure
(A)
Involuntary unemployment
(B)
Cyclical unemployment
(C)
Voluntary unemployment
(D)
A fall in aggregate demand
Your Score 0/10
Click
here
to see your answersheet and detailed track records.
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
Powered By
