A Level Economics Quiz 2017 Part 3

20 Questions

Quiz Description

Economics as a whole is a social science subject concerned chiefly with description and analysis of the production and distribution of goods and services. This subject also deals with the studies of how individuals, governments and nations make decisions about how to allocate resources.

Economics paper 1 examination is always a problem for most students. The distinction between answers is so small, which then becomes a problem for most students. In Order to help out with this problem, a quiz of 20 questions has been set based on the CGCE A-level Economics syllabus. Some of these topics include “Economic growth, trade, unemployment”.

These questions are here to give you a guide. Practice how you can answer and reason out these questions. After this set of questions, you can then move on to the next set of questions. To gain more materials click on more

Good luck!!!

1:

This Question is based on figure 4, showing the savings and investment situations in an economy.

The value of the multiplier is


<p> This Question is based on figure 4, showing the savings and investment situations in an economy. </p><p>The value of the multiplier is </p>
Correct
  • 1:
    1.7
  • 2:
    2.
  • 3:
    4
  • 4:
    6
2:

The speculative demand for money is


Correct
  • 1:
    An inverse function of the price of goods
  • 2:
    An inverse function of the interest rate
  • 3:
    A positive function of the price of gods
  • 4:
    A positive function of the interest rate
3:

Demand-pull inflation most likely


Correct
  • 1:
    Simulate production
  • 2:
    Force down the rate of interest on loans
  • 3:
    Change of distribution of income in favour of people with fixed incomes
  • 4:
    Improve performance in foreign markets
4:

The question is mased on the table below, which shows a country’s consumption schedule

The savings function is represented by


<p></p><p> The question is mased on the table below, which shows a country’s consumption schedule </p><p></p><p>The savings function is represented by </p>
Correct
  • 1:
    S=600FCFA + 0.7Y
  • 2:
    S=600FCFA – 0.3Y
  • 3:
    S=-600FCFA + 0.3Y
  • 4:
    S=-600FCFA -0.7Y
5:

If a bank receives a new demand deposit of 100,000 million FCFA and the liquidityratio of the bank is 20%, then the bank can lend out


Correct
  • 1:
    20,000 million FCFA
  • 2:
    400,000 million FCFA
  • 3:
    80,000 million FCFA
  • 4:
    500,000 million FCFA
6:

If government spending exceeds tax collection


Correct
  • 1:
    Private savings is positive
  • 2:
    Public saving is positive
  • 3:
    There is a budget deficit
  • 4:
    There is a budget surplus
7:

The part of the government debt which consists of treasure bills is often referred to as floating debt because


Correct
  • 1:
    The cost of servicing the debt is high
  • 2:
    The cost of servicing the debt is high
  • 3:
    The government borrowed the money and used in capital project
  • 4:
    The data was to finance current spending
8:

A country has a progressive income tax. The first 6,000FCFA earned in tax-free. Thereafter, the next 20000 FCFA of income earned is taxed at 25% and all taxable income above that is taxed 50%, if a person earns 50,000FCFA, how much tax will he pay?


Correct
  • 1:
    5,000 FCFA
  • 2:
    12,000 FCFA
  • 3:
    17,000 FCFA
  • 4:
    25,000 FCFA
9:

The process by which a country attempts to reduce the purchase of foreign goods by encouraging local firms to produce those goods at home is known as


Correct
  • 1:
    Export promotion
  • 2:
    Export substitution
  • 3:
    Import stabilization
  • 4:
    Import substitution
10:

In which trade bloc do members states trade freely amongst themselves, but each member state has the latitude to impose individual tariff rates against non-members?


Correct
  • 1:
    Custom Union
  • 2:
    Free Trade Area
  • 3:
    Common Market
  • 4:
    Economic Community
11:

Under which of the following situations may a nation experience favourable terms of trade?


Correct
  • 1:
    Import price fall
  • 2:
    Export prices fall
  • 3:
    Export prices faster than import price
  • 4:
    Export prices fall equal to import prices
12:

For which economic bloc does Cameroon belong?


Correct
  • 1:
    ECOWAS
  • 2:
    CEMAC
  • 3:
    E.M.F
  • 4:
    BEAC
13:

Economic growth is depicted by


Correct
  • 1:
    A movement along the production possibilities frontier towards capital goods
  • 2:
    A shift of the production possibilities frontier outwards
  • 3:
    A movement along the production possibilities frontier toward consumer goods
  • 4:
    A shift of the production possibilities frontier inwards
14:

In a trade cycle, a downturn occurs when real Gross Domestic Production


Correct
  • 1:
    is high
  • 2:
    declines
  • 3:
    fluctuates
  • 4:
    does not change
15:

The type of unemployment that cannot be avoided in an economy is known as


Correct
  • 1:
    mass unemployment
  • 2:
    residual unemployment
  • 3:
    cyclical unemployment
  • 4:
    frictional unemployment
16:

A situation when an unemployed person receiving social security benefits is not encourages to look for work is termed


Correct
  • 1:
    unemployment trap
  • 2:
    poverty trap
  • 3:
    poverty string
  • 4:
    unemployment string
17:

The largest source of tax revenue to the government is:


Correct
  • 1:
    the social security tax
  • 2:
    the property tax
  • 3:
    the personal income tax
  • 4:
    value added tax
18:

An increase in the supply of money will cause interest rates to:


Correct
  • 1:
    rise and later fall
  • 2:
    remain unchanged
  • 3:
    rise
  • 4:
    fall
19:

The law of demand states that:


Correct
  • 1:
    as the price rises, the quantity demanded falls
  • 2:
    as the price rises, the quantity demanded rises
  • 3:
    as the quantity demanded rises, the price rises
  • 4:
    as the quantity demanded falls, the price rises
20:

Which of the document in the formation of a limited company listed below regulates the external affairs of the company?


Correct
  • 1:
    A. Certificate of incorporation
  • 2:
    B. Articles of association
  • 3:
    C. prospectus
  • 4:
    D. memorandum of Association

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A Level Economics Quiz 2017 Part 3
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