A Level Economics Quiz 2019 Part 3

20 Questions

Quiz Description

According to Allen (1997), economics is a social science that analyzes and describes the consequences of choices made concerning scarce productive resources. To gain skills that allows you to apply knowledge of economics in real life. Some of these skills might include analytical and problem solving. But before gaining such skills, you must have a background knowledge in economics

To give you a glimpse of the knowledge you need, we have designed a quiz of 20 questions based on A-level Economics 2019. The questions entail everything you have done in economics in High School. Some of the questions are under the topics “the tax system, economic growth, etc.

We advised all students to go through each question carefully, understanding the questions, what is asked of you and now how to attempt the question.

Our main aim is to help you better prepare for the upcoming exam. So that each student will now have a better view of how Paper questions are set. Remember the key to success is hard work and consistency. So, answer as many quizzes as possible. Upon completion of this quiz, you can move on to the next session or visit our website to have more of such materials

Good luck!!!

1:

If the MPS in a particular economy is 0.2 and the government increases investment by 2,000 million FCFA, the national income will increase by:


Correct
  • 1:
    10,000 million FCFA
  • 2:
    16,000 million FCFA
  • 3:
    8,000 million FCFA
  • 4:
    1,600 million FCFA
2:

An increase in investment of 400 million FCFA leads to the following chain of increases in total spending 400 million FCFA + 320 million FCFA + 256 million FCFA + …What is the value of the MPS?


Correct
  • 1:
    0.8
  • 2:
    0.2
  • 3:
    0.2%
  • 4:
    0.8%
3:

The Net Present Value (NPV) method used in taking investment decisions allows for investment to take place when:


Correct
  • 1:
    NPV is falling
  • 2:
    NPV is equal to 0
  • 3:
    NPV is less than 0
  • 4:
    NPV is greater than 0
4:

If 200 machines can produce 1,000 units of output, what is the value of the accelerator?


Correct
  • 1:
    5
  • 2:
    2
  • 3:
    0.2
  • 4:
    0.5
5:

Which of the following will the central bank use to encourage credit creation in an economy?


Correct
  • 1:
    Buy securities in the Open Market
  • 2:
    Funding
  • 3:
    Moral Suasion
  • 4:
    Increase Special Deposits
6:

The function of money which solve the problem of trade by barter is:


Correct
  • 1:
    Standard of deferred payment
  • 2:
    Unit of account
  • 3:
    Store of value
  • 4:
    Medium of exchange
7:

Table below shows changes in the rate of inflation in a country over three years

From the table we can deduce that:


<p>Table below shows changes in the rate of inflation in a country over three years</p><p> From the table we can deduce that: </p>
Correct
  • 1:
    Cost of living is falling
  • 2:
    Standard of living is falling
  • 3:
    The value of money is falling
  • 4:
    Purchasing power is falling
8:

Following the Quantity Theory of Money, if M=30,000 FCFA, V=5, T=25,000 FCFA, the value of P and total expenditure will respectively be:


Correct
  • 1:
    5,000 FCFA and 50,000 FCFA
  • 2:
    6 and 125,000 FCFA
  • 3:
    6 and 150,000 FCFA
  • 4:
    6 and 150,000 FCFA 5,000 FCFA and 125,000 FCFA
9:

The principle that taxes should be designed to achieve its objectives but with minimal effect on people’s behaviour towards work is:


Correct
  • 1:
    Efficiency
  • 2:
    Economy
  • 3:
    Convenience
  • 4:
    Flexibility
10:

The government of Cameroon contracts a loan of 50 million FCFA to finance the following activities:

20 million FCFA to finance provision of electricity.

10 million FCFA to repair transport infrastructure

20 million FCFA to provide war armaments.

Which of the following is correct?


Correct
  • 1:
    20% is reproductive debt and 60% deadweight debt
  • 2:
    60% is reproductive debt and 40% is deadweight debt
  • 3:
    100% is deadweight debt
  • 4:
    100% is reproductive debt
11:

If income increases from 20,000 FCFA to 40,000 FCFA and income tax increases from 1,000 FCFA to 1,400 FCFA, the tax system would be termed.


Correct
  • 1:
    Pay as you earn
  • 2:
    Proportionate
  • 3:
    Progressive
  • 4:
    Regressive
12:

What term is used to describe a situation where money incomes rise and tax payers enter higher tax brackets?


Correct
  • 1:
    Indexation
  • 2:
    Crowding
  • 3:
    Fiscal drag
  • 4:
    Fiscal boost
13:

Which of the following is a form of expenditure switching measure?


Correct
  • 1:
    Increasing tariffs
  • 2:
    Increasing government spending
  • 3:
    Reducing direct taxes
  • 4:
    Devaluing the domestic currency
14:

If Cameroon specializes completely in the good for which if has a comparative advantage, what is the maximum output it will produce?


<p> If Cameroon specializes completely in the good for which if has a comparative advantage, what is the maximum output it will produce? </p>
Correct
  • 1:
    200 tons of rice
  • 2:
    100 tons of rice
  • 3:
    500 cars
  • 4:
    100 cars
15:

Which of the following international organization aims at reducing barriers against world trade?


Correct
  • 1:
    IBRD
  • 2:
    WTO
  • 3:
    IMF
  • 4:
    GATT
16:

To operate a managed exchange rate, government:


Correct
  • 1:
    Buys and sells its currency
  • 2:
    Sets the exchange rate directly
  • 3:
    Backs its currency with gold
  • 4:
    Does not intervene in the free market
17:

An increase in real GDP accompanied by structural changes in an economy is:


Correct
  • 1:
    Economic growth
  • 2:
    Economic development
  • 3:
    Economic expansion
  • 4:
    Economic transformation
18:

The short-run opportunity cost of economic growth will most likely be a reduction


Correct
  • 1:
    In the quantity of consumer goods produced
  • 2:
    In the quantity of capital goods produced
  • 3:
    In future production of consumer good
  • 4:
    In future production of capital goods
19:

The fluctuations in economic activities in an economy overtime is referred to as:


Correct
  • 1:
    Growth cycle
  • 2:
    Product cycle
  • 3:
    Business cycle
  • 4:
    Development cycle
20:

If the number of people declared unemployed is 40,000, the number employed is 460,000 and those in the dependent age group is 100,000. What is the unemployment rate?


Correct
  • 1:
    6.67%
  • 2:
    8%
  • 3:
    83.3%
  • 4:
    16.6%

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A Level Economics Quiz 2019 Part 3
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