A Level Economics Quiz 2015 Part 3

20 Questions

Quiz Description

Economics is the study of how humans make decisions in the face of scarcity (Scarcity means that human wants for goods, services and resources exceed what is available). These can be individual decisions, family decisions, business decisions or societal decisions.

This quiz is aimed to help students get a glimpse of what the GCE multiple choice questions look like. The questions are very challenging and most of the time the choice of answer becomes a problem. We have selected 20 questions from the Advance level Economics June 2015 session for students to attempt. Each student is advised to through the questions thoroughly.

These questions are here to help you understand how you can answer particular questions and the manner of approach to these questions in the examination hall. So, make sure to go all through the question

There are other questions present which are to help you get prepared for the CGCE Advanced Level Economics. After answering these 20 questions, you move on to the next set of questions.

Good luck!!!

1:

Saving in an economy is equal to


Correct
  • 1:
    Saving by firms + saving by households
  • 2:
    GDP - government purchases
  • 3:
    Private saving + public saving
  • 4:
    Total final expenditure - consumption expenditure
2:

The value of the multiplier can fall because of


Correct
  • 1:
    An increase in the marginal propensity to import
  • 2:
    A fall in the marginal propensity to save
  • 3:
    An increase in export
  • 4:
    An increase in government spending on goods and services
3:

This question is based on table below
showing the T-account for a hypothetical commercial bank. The figures are in million FCFA’

What is the maximum amount of deposit this bank can make?


<p>This question is based on table below<br/>showing the T-account for a hypothetical commercial bank. The figures are in million FCFA’ </p><p>What is the maximum amount of deposit this bank can make? </p>
Correct
  • 1:
    800 million FCFA
  • 2:
    1,000 million FCFA
  • 3:
    9,000 million FCFA
  • 4:
    10,000 million FCFA
4:

In choosing a commodity to serve as money, the most important characteristics must be that it is


Correct
  • 1:
    Easily recognized
  • 2:
    Portable
  • 3:
    Durable
  • 4:
    Generally acceptable
5:

The calculation of the weighted price index shows that between 2005 and 2007, the general price level rose by


<p>The calculation of the weighted price index shows that between 2005 and 2007, the general price level rose by </p>
Correct
  • 1:
    50%
  • 2:
    16.6%
  • 3:
    14%
  • 4:
    5%
6:

A regressive tax can best be described as one which


Correct
  • 1:
    Increases with income
  • 2:
    Imposes a greater burden on the poor
  • 3:
    Redistributes income in favour of the poor
  • 4:
    Decreases proportionality with income
7:

The hypothetical figures of a country’s national debt are as follows:

National debt 1,400 million FCFA

External debt 560 million FCFA

Internal debt 840 million FCFA

What percentage of the national debt constitutes a real burden?


Correct
  • 1:
    60%
  • 2:
    40%
  • 3:
    66%
  • 4:
    66.6%
8:

What expression is used to describe a situation where a new loan is contracted to pay off the existing one to reduce interest rate?


Correct
  • 1:
    Refinancing a debt
  • 2:
    Redeeming a debt
  • 3:
    Re-marketing a debt
  • 4:
    Replacing a debt
9:

In year I, a country’s visible imports totaled 1,000 billion FCFA and its balance of trade was 500 billion FCFA. In year 2, itsvisible imports fell in value by 4 per cent. The balance of trade in year 2 was


Correct
  • 1:
    1,500 billion FCFA
  • 2:
    540 billion FCFA
  • 3:
    2,500 billion FCFA
  • 4:
    960 billion FCFA
10:

Which of the following people would be pleased by a devaluation of the FCFA everything being equal?


Correct
  • 1:
    A Cameroonian tourist travelling to europe
  • 2:
    A Cameroonian importer of Japanese cars
  • 3:
    A Spanish exporter of wine to Cameroon
  • 4:
    A German importer of Cameroon wood
11:

The adverse movement in the terms of trade means that


Correct
  • 1:
    The volume of exports has fallen relative to the volume of imports
  • 2:
    The total value of exports has fallen relative to the total value of imports
  • 3:
    The average price of exports has fallen relative to the average price of imports
  • 4:
    The average price of imports has fallen relative to the average price of exports
12:

Arbitrage is the process where


Correct
  • 1:
    Exchange rates throughout the world are in equilibrium
  • 2:
    Bills of exchange are discounted
  • 3:
    The central bank interviews in the exchange market
  • 4:
    Currencies are bought in one centre and immediately sold in another at a profit
13:

The movement from any point inside to a point on the production possibilities curve is termed


Correct
  • 1:
    Actual growth
  • 2:
    Potential growth
  • 3:
    Economic development
  • 4:
    Economic growth
14:

When a country increases the stock of capital per worker, increasing labour productivity, this is called


Correct
  • 1:
    Capital consumption
  • 2:
    Capital accumulation
  • 3:
    Capital deepening
  • 4:
    Capital widening
15:

A recession as a phase of a business cycle is characterised by


Correct
  • 1:
    An increase in investment
  • 2:
    Falling government expenditure on benefits
  • 3:
    Increasing inflationary pressures
  • 4:
    Increasing stocks of unsold goods
16:

When the real source of money, which may be from illegal sources, is hidden this is described as


Correct
  • 1:
    Money laundering
  • 2:
    Hot money
  • 3:
    Capital flight
  • 4:
    Black money market
17:

When production is carried out on the basis of the order placed by the customers, this is known as


Correct
  • 1:
    Hatch production
  • 2:
    Job production
  • 3:
    Flow production
  • 4:
    Flow-line production
18:

The systematic procedure laid down by management concerning ordering, receiving, recording, issuing and accounting for stocks is known as


Correct
  • 1:
    Purchasing control
  • 2:
    Stock control
  • 3:
    Production control
  • 4:
    Quality control
19:

The best channel of distribution of a perishable good is:


Correct
  • 1:
    Wholesalers to consumers
  • 2:
    Wholesalers to retailers then to consumers
  • 3:
    Direct sales to consumers
  • 4:
    Retailers to consumers
20:

A machine which has a life span of 2 years yields an annual income of 121,000 FCFA. If it costs 200,000 FCFA to buy it and the current rate of interest is 10%, what is the net present value?


Correct
  • 1:
    20,000 FCFA
  • 2:
    10,000 FCFA
  • 3:
    79,000 FCFA
  • 4:
    12,000 FCFA

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A Level Economics Quiz 2015 Part 3
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