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
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
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-3
A reduction in the money supply is likely to
(A)
Reduce the interest rate
(B)
Increase the interest rate
(C)
Increase inflation
(D)
Decrease deflation
Question-4
If people are made unemployed because of a fall in aggregate demand this is known as
(A)
Frictional unemployment
(B)
Seasonal unemployment
(C)
Cyclical unemployment
(D)
Structural unemployment
Question-5
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-6
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-7
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-8
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-9
If the economy grows the governments budget position should automatically
(A)
Worsen
(B)
Improve
(C)
Stay the same
(D)
Decrease with inflation
Question-10
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
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