A Level Economics Quiz 2021 Part 3

A firm uses 5 machines to produce 1,000 units of a good. If 1 machine must be replaced each year, what is the value of gross investment when demand increases to 1,200 units?

Question is based on Figure 4 showing the level of National Income in an economy.

To close the gap ab, the government increases her expenditure by 50M FCFA. The value of the multiplier in this economy is

In a three sector closed economy, the MPC=0.8. The value of the balanced budget
multiplier is

Which of the following will shift the investment demand curve to the right?

Which of the following factors influences the demand for idle balances in an economy?

Question is based on Table below relating to the balance sheet of an imaginary bank.

Determine the bank’s cash ratio

The instrument of monetary policy which involves the buying and selling of
government securities is called

When commercial banks are able to increase the supply of money above the base money they hold in the form of accounts or bank deposits, this is known as

When the government spent on the day to day running of the public service, this category of government spending is described as

Pay As You Earn (PAYE) is a method of income tax collection through which taxes are paid according to people’s

Cameroon’s national debt is the debt of the

The final resting place of the tax burden is termed the

An economy is said to be experiencing a trade gap when

Question is based on Table below showing the domestic opportunity cost ratios for 2 countries producing 3 goods with equal resources.
Which of the following is a mutually beneficial exchange rate for these countries?

The part of the Balance of Payments account which shows how the government covered its deficit or used its surplus is called

An overvalued currency is one with

A country discovers new resources which gives it the potential to produce more of capital and consumer goods. This explains

Which of the following would you consider as an undesirable development strategy to be used by developing countries?

The curve which shows the trade-off between inflation rate and unemployment rate is known as the

The type of unemployment resulting from immobility of labour is known as