A Level Economics Quiz 2016 Part 2

15 Questions

Quiz Description

Economics is often defined as the study of how people make choices, while considering how these choices are constrained because of limited resources such as money, time, and information.

Economics is often perceived as a hard subject, especially at the advanced level because it requires the students to connect to a larger world that they may not be aware of.

When preparing for any exam, it is integral that you do past papers. It’s simply the best way to prepare for an exam. In this sense, we have selectively chosen the June session of 2016 for you to evaluate yourself. These questions are based on the CGCE Economics syllabus. This quiz covers a wide range of topics such as “Economic growth, inflation and so on”.

This quiz is made up of 15 questions, with each question having four possible answers. Only one of the answers is correct among the four given choices.

When you are done with this set of questions, you can then move on to the next set of questions which are also based on the June session of 2016. For more such quizzes, click on more

Good luck!!

1:

Profit maximizing output and optimum output are the same in the long run under


Correct
  • 1:
    monopoly only
  • 2:
    monopolistic competition
  • 3:
    perfect competition only
  • 4:
    perfect competition and monopoly
2:

Effective product differentiation will tend to make


Correct
  • 1:
    demand more income elastic
  • 2:
    supply more price inelastic
  • 3:
    demand more price inelastic
  • 4:
    supply more income inelastic 18. If a firm has prospective sales of 10 million FCFA, fixed costs of 12 million FCFA and variable costs of 8 million FCFA, in the short run it should A. continue to produce. B. shutdown. C. raise more capital. D. plough back its profit. 19. If a nationalised industry is to operate with financial autonomy, which of the following pricing policies should it adopt? A. Marginal cost pricing policy. B. Average cost pricing policy. C. Skimming pricing policy. D. Market penetration pricing policy 20. A firm’s total fixed cost = 100,000 FCFA; Average fixed cost = 100 FCFA; and Average variable cost = 600.FCFA. The output produced by this firm is A. 1,00 units B. 600 units C. 1,200 units D. 250 units 21. The reservation of particular tasks to workers with specialised skills is termed A. working-to-rule. B. demarcation rules. C. closed shop. D. open shop 22. If the government finds that it has to make an interest payment of 36,000 FCFA on a loan of 1 ,000,000 FCFA for three months, what is the rate of interest per annum? A. 10% B. 3.6% C. 10.8% D. 14.4% 23. When a factor of production is in temporarily fixed supply, enabling economic rent to be earned only in the short run, this is referred to as A. rent of ability. B. quasi rent.
3:

If a firm has prospective sales of 10 million FCFA, fixed costs of 12 million FCFA and variable costs of 8 million FCFA, in the short run it should


Correct
  • 1:
    continue to produce.
  • 2:
    shutdown
  • 3:
    raise more capital
  • 4:
    plough back its profit
4:

If a nationalized industry is to operate with financial autonomy, which of the following pricing policies should it adopt?


Correct
  • 1:
    Marginal cost pricing policy
  • 2:
    Average cost pricing policy
  • 3:
    Skimming pricing policy
  • 4:
    Market penetration pricing policy
5:

A firm’s total fixed cost = 100,000 FCFA; Average fixed cost = 100 FCFA; and Average variable cost = 600.FCFA. The output produced by this firm is


Correct
  • 1:
    1,000 units
  • 2:
    600 units
  • 3:
    1,200 units
  • 4:
    250 units
6:

The reservation of particular tasks to workers with specialized skills is termed


Correct
  • 1:
    A. working-to-rule
  • 2:
    demarcation rules
  • 3:
    closed shop
  • 4:
    open shop
7:

If the government finds that it has to make an interest payment of 36,000 FCFA on a loan of 1,000,000 FCFA for three months, what is the rate of interest per annum?


Correct
  • 1:
    10%
  • 2:
    3.6%
  • 3:
    10.8%
  • 4:
    14.4%
8:

When a factor of production is in temporarily fixed supply, enabling economic rent to be earned only in the short run, this is referred to as


Correct
  • 1:
    rent of ability
  • 2:
    quasi rent
  • 3:
    transfer earnings
  • 4:
    transfer payments
9:

Gross National Product at market price minus Gross Domestic Product at market price is equal to


Correct
  • 1:
    Property income paid abroad.
  • 2:
    property income received from abroad
  • 3:
    net property income from abroad.
  • 4:
    capital consumption.
10:

Given that the National Income of a given country is 6,000 million FCFA, determine its personal disposable income assuming that households pay taxes for 500 million FCFA, contribute 600 million FCFA for National Social Insurance and receive transfer payments worth 200 million FCFA.


Correct
  • 1:
    5,900 million FCFA
  • 2:
    8,300 million FCFA
  • 3:
    6,300 million FCFA
  • 4:
    5,100 million FCFA
11:

The increase in the value of inventories brought about by inflation is known as


Correct
  • 1:
    stock appreciation
  • 2:
    physical increase in stock
  • 3:
    stock depreciation
  • 4:
    Unplanned inventory
12:

In an economy, total final expenditure is always equal to


Correct
  • 1:
    C + I + G
  • 2:
    C + I + G + X
  • 3:
    C + I + G + X - M
  • 4:
    C + I + G – X + M
13:

In an open economy, an increase in imports everything being equal


Correct
  • 1:
    lowers both aggregate demand and equilibrium income
  • 2:
    lowers aggregate demand and raises equilibrium income
  • 3:
    raises both , aggregate demand and equilibrium income
  • 4:
    raises aggregate demand and lowers equilibrium income
14:

In an economy, equilibrium income stands at 1,000 million FCFA while full employment income is 1,500 million. What gap is created in this economy?


Correct
  • 1:
    Inflationary gap
  • 2:
    Full employment gap.
  • 3:
    Deflationary gap.
  • 4:
    Income gap.
15:

In a closed economy with no government intervention, C = 50 + 0.85Y, where Y is income. Autonomous investment is constant at 60. Induced investment is I = 0,05Y for all levels of income. At what level of income will savings equal investment?


Correct
  • 1:
    90
  • 2:
    110
  • 3:
    990
  • 4:
    1,100

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A Level Economics Quiz 2016 Part 2
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