Economics is the study of how societies allocate limited resources to meet the unlimited needs and wants of individuals. It focuses on the production of goods and services, economic growth, and various complex issues that are important to society.
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Question 521: Indirect taxes are taxes?
Options:
A) which are levied on the incomes and profits of individuals and firms
B) whose incidence always falls on the consumer
C) which are based on the progressive principle
D) on casinos, airports and capitals gains
E) which are levied on people and economic units through the goods and services they purchase
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The correct answer is E .
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Question 522: The meaning of ‘wage-price spiral’ is?
Options:
A) demand pull and cost push inflation pulling each other in different director
B) demand pull and cost push inflation intensifying each other
C) both of them bringing about a reduction in the price level
D) that demand pull and cost push inflation increases employment
E) that wages and prices are rising at a proportional rate
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The correct answer is B .
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Question 523: The value of the multiplier depends on?
Options:
A) MPC and level of income
B) level of personal income
C) level of personal savings
D) government policy and MPC
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The correct answer is D .
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Question 524: Given that demand and price remain unchanged an outward shift of the supply curve will lead to
Options:
A) hoarding
B) excess supply
C) excess demand
D) a blank market
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The correct answer is B .
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Question 525: A decrease in aggregate spending in an economy will ultimately lead to
Options:
A) boom
B) inflation
C) deflation
D) recession
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The correct answer is C .
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Question 526: If y represents the income earned by workers in a factory, find the range of their income which satisfies the following inequality: 4Y - 300 > 500.
Options:
A) y > 300
B) y > 250
C) y > 200
D) y > 150
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The correct answer is C .
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Question 527:
In the diagram equilibrium price is:
Options:
A) P2
B) Po
C) P1
D) indeterminate
E) between Po and P1 Diagram P.2
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The correct answer is B .
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Question 528: A huge national debt is an indication that the gold reserves of a nation has
Options:
A) appreciated
B) decreased
C) depreciated
D) stagnated
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The correct answer is D .
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Question 529: An increase in the price of a commodity will result in
Options:
A) a decrease in the quantity demanded
B) an increase in demand
C) an increase in quantity demanded
D) a decrease in demand
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The correct answer is A .
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Question 530: In which of the following economic systems do we have the means of production and exchange controlled by private individuals
Options:
A) socialist system
B) mixed system
C) capitalist system
D) traditional system
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The correct answer is C .