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 71: An example of an expansionary fiscal policy action is
Options:
A) decrease in the corporate profit tax rates
B) decrease in welfare payments
C) purchase of government securities
D) decrease in the bank rate
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The correct answer is A .
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Question 72:
Wholesalers play an important in the distribution of goods and services because they
Options:
A) are located very close to consumers
B) finance both producers and retailers
C) pass information on from retailers to consumers
D) sell in small units to consumers
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The correct answer is B .
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Question 73:
Fiscal policy measures imply a change in
Options:
A) only taxation to control aggregate demand
B) bank rate to infulence lending
C) only government expenditure to regulate an economy
D) government revenue and expenditure to regulate an economy
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The correct answer is D .
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Question 74: The factor of production that has the highest degree of mobility is?
Options:
A) land
B) labour
C) capital
D) enterpreneurship
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The correct answer is B .
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Question 75: Commercial banks can create money in the following ways?
Options:
A) by using coins and paper money
B) by borrowing money from banks abroad
C) by receiving deposit from individuals
D) by printing money on the instruction of the central bank
E) none of the above
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The correct answer is E .
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Question 76:
If the demand for a commodity is perfectly elastic, the incidence of a tax on that commodity will be, other things being equal, entirely on the_______
Options:
A) buyer
B) seller
C) government
D) local authority
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The correct answer is B .
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Question 77: Completely competitive market exist when each member is a —
Options:
A) price maker
B) price taker
C) price seeker
D) a and b
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The correct answer is B .
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Question 78:
Economics problems arise in all societies because
Options:
A) resources are mismanaged by leaders
B) there is no proper planning
C) resource are not in adequate supply
D) the services of economists are not employed
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The correct answer is C .
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Question 79: A downward sloping demand curve intersect a fixed supply curve, A shift of this demand curve to the right implies that?
Options:
A) both price and quantity will increased
B) only price increases
C) only quantity increases
D) the price remains constant
E) the price falls
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The correct answer is A .
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Question 80: As the level of output increases, the average fixed cost of a firm will
Options:
A) continue to decrease
B) remain unchanged
C) continue to increase
D) be equal to the total cost
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The correct answer is A .