# A Level Economics Quiz 2016 Part 3

#### Quiz Description

Economics can be defined in so many ways. One of its major definitions is “a subject that deals with the scientific study of the ownership, use, and exchange of scarce resources – often shortened to the science of scarcity”.

The hardest part of learning A-level Economics is that you have to use what you know to apply to the test, which requires you to be fluent in both English and Math because there are so many topics related to it.

Examinations are always a problem for all students. You can dream about an “easy” exam, but can A-level Economics deliver it? The answer will be yes, because as long as you have a good grasp of the exam structure, you will only wish to see it.

The quiz you’re about to take are questions summarized from the June session of 2016. The quiz is made of 20 questions. Each question has four possible answers and only one is correct among the four.

After this set of questions, you can then move on to the next set of questions. To keep on challenging yourself, visit our website.

Good luck!!!

In an economy the following values are given 1 = 100, G = 150, X = 50, S = 0.2Y, T = 0.2Y and M = 0.1Y. The value of M is

Correct
• 600
• 60
• 300
• 30

In an economy the capital-output ratio is constant at 50 machines for in output of 100 units. The accelerator in this 'economy is

Correct
• 0.5
• 2
• 5
• 10

Required reserves of banks are a fixed percentage of their

Correct
• loans
• assets
• deposits
• cash at the central bank

Certificates of deposit are considered as near money because they are

Correct
• Certificates of deposit are considered as near money because they are
• standard for deferred payments.
• held by the private sector
• a store of value

Which of the following is a limitation of the retail price index? When:

Correct
• goods and services change in quality.
• more households are surveyed
• weights are altered to reflect changes in consumer spending.
• a detailed record of expenditure is used to derive that of an average family.

When a tax system is based on the idea that those who earn more should pay proportionately more, this is in conformity with which canon of taxation?

Correct
• Convenience
• Effectiveness
• Equity
• Efficiency

Crowding out occurs when the government

Correct
• borrows money to finance the national debt causing private investment to increase
• reduces the level of national debt forcing up interest rate
• borrows to finance the national debt causing private investment to fall
• balances the budget causing consumption to fall.

The final burden of a tax is referred as

Correct
• impact of tax
• tax acceptance
• tax base
• incidence of tax

A country is said to have a comparative advantage in the production of a good when

Correct
• it accounts for a greater percentage of world output
• it can product it at a lower opportunity cost than its trading partners
• it can produce more of it than any other country
• it can produce at a higher opportunity cost than its trading partners

This question is based on the information below are in million FCFA.

Net transactions -200 Services 90

Visible imports 2,620

Transfers 50

Interest, Profit 70

Visible exports 2,560

The value of the balance of trade is

Correct
• 210 million FCFA
• 50 million FCFA
• 60 million FCFA
• 150 million FCFA.

Which of the following conditions is NOT favourable to a country carrying out a devaluation?

Correct
• Supply of exports is inelastic
• The demand for exports is elastic
• The demand for imports is elastic
• The supply of imports is elastic

If a country has an inelastic demand and supply of its exports, and has a persistent balance of payments surplus, what should the country do as the last resort?

Correct
• Lower the value of her currency
• Raise the value of its currency
• Sell her foreign investment
• Borrow from international organizations

Which of the following is the most likely hinderance to economic development?

Correct
• Level of technology
• Corruption
• Low birth rate
• Increase in saving and investment.

Which of the following is an immediate opportunity cost of economic growth?

Correct
• Technological unemployment.
• Sacrifice of present consumption.
• A reduction in government’s ability to reduce poverty.
• Exhaustion of resources.

The level of unemployment associated with a constant rate of inflation is known as

Correct
• natural rate of unemployment
• disequilibrium rate of unemployment
• voluntary unemployment
• \equilibrium rate of unemployment

Which of the following government policies will most likely stimulate economic growth?

Correct
• An increase in income tax
• An increase in the rate of interest
• An increase in the exchange rate
• An increase in education and training

When a manager anticipates change and makes adequate preparations to accommodate it, this is known as

Correct
• proactive change
• positive change
• speculative change
• reactive change

The function of management which requires motivating, directing and influencing people to give a high work performance is called

Correct
• planning
• co-ordinating
• controlling

a business segment that incurs cost but does not generate revenue or profit is known as

Correct
• losses centre
• unprofitable centre
• cost centre
• negative income centre

A set controllable variable that a firm must put together to satisfy a target is known as

Correct
• product mix
• marketing mix
• market research
• marketing research