A Level Economics Quiz 2021 Part 3

20 Questions

Quiz Description

Economics, economics, economics

We must have read/heard so many definitions about the social science subject about economics. One of its definitions being “the science that deals with the production, distribution and consumption of wealth, and with the various related problems of labor, finance, taxation etc.

With its vast application in society, economics requires you to be fluent in both English and Math. And what better way to hone your knowledge than to attempt quizzes. Selectively chosen, this quiz comprises 20 questions only. Some of the topics you are going to face off are; employment, trade, employment, etcConsistency brings success. With this in mind, at the end of this session we have prepared other quizzes in economics and the other advanced level related subjects. Do well to play with the quizzes.

1:

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?


Correct
  • 1:
    1
  • 2:
    2
  • 3:
    3
  • 4:
    4
2:

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


<p> Question is based on Figure 4 showing the level of National Income in an economy.</p><p> To close the gap ab, the government increases her expenditure by 50M FCFA. The value of the multiplier in this economy is </p>
Correct
  • 1:
    Improvement in technology
  • 2:
    An increase in the aggregate demand for goods
  • 3:
    Increase in taxes
  • 4:
    Business expectations
3:

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


Correct
  • 1:
    1
  • 2:
    1.25
  • 3:
    4
  • 4:
    5
4:

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


Correct
  • 1:
    Improvement in technology
  • 2:
    An increase in the aggregate demand for goods
  • 3:
    Increase in taxes
  • 4:
    Business expectations
5:

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


Correct
  • 1:
    Real incomeReal income
  • 2:
    Price level
  • 3:
    Price of bonds
  • 4:
    Spending habits
6:

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

Determine the bank’s cash ratio


<p>Question is based on Table below relating to the balance sheet of an imaginary bank. </p><p> Determine the bank’s cash ratio </p>
Correct
  • 1:
    10%
  • 2:
    15%
  • 3:
    20%
  • 4:
    80%
7:

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


Correct
  • 1:
    Minimum lending rate
  • 2:
    Cash ratio
  • 3:
    Open market operations
  • 4:
    Special deposits
8:

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


Correct
  • 1:
    Money laundering
  • 2:
    Credit creation
  • 3:
    Hot money
  • 4:
    Money illusion
9:

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


Correct
  • 1:
    Recurrent expenditure
  • 2:
    Investment expenditure
  • 3:
    Current expenditure
  • 4:
    Social expenditure
10:

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


Correct
  • 1:
    Incomes
  • 2:
    Taxes are deducted at source
  • 3:
    The tax system is progressive in nature
  • 4:
    The tax system favours the poor
11:

Cameroon’s national debt is the debt of the


Correct
  • 1:
    Public sector in Cameroon
  • 2:
    Central government of Cameroon
  • 3:
    Local governments in Cameroon
  • 4:
    Private sector in Cameroon
12:

The final resting place of the tax burden is termed the


Correct
  • 1:
    Tax base
  • 2:
    Tax burden
  • 3:
    Tax incidence
  • 4:
    Tax impact
13:

An economy is said to be experiencing a trade gap when


Correct
  • 1:
    Imports exceed exports in value
  • 2:
    Exports exceed imports in value
  • 3:
    Imports equal exports in value
  • 4:
    Imports are taxed
14:

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?


<p>Question is based on Table below showing the domestic opportunity cost ratios for 2 countries producing 3 goods with equal resources. <br/> Which of the following is a mutually beneficial exchange rate for these countries? </p>
Correct
  • 1:
    1 bale for 10 tons
  • 2:
    1 bale for 20 tons
  • 3:
    1 bale for 4 tons
  • 4:
    1 bale for 3 tons
15:

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


Correct
  • 1:
    Current account
  • 2:
    Capital account
  • 3:
    Official financing
  • 4:
    Balancing item
16:

An overvalued currency is one with


Correct
  • 1:
    Low exchange rate
  • 2:
    High exchange rate
  • 3:
    Fixed exchange rate
  • 4:
    Floating exchange rate
17:

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


Correct
  • 1:
    Actual economic growth
  • 2:
    Potential economic growth
  • 3:
    Real economic growth
  • 4:
    Economic development
18:

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


Correct
  • 1:
    Increasing primary production
  • 2:
    Industrialisation through import substitution
  • 3:
    Exporting tourism potentials
  • 4:
    Reliance of foreign aid
19:

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


Correct
  • 1:
    Philips curve
  • 2:
    J-curve
  • 3:
    Laffer curve
  • 4:
    Keynesian curve
20:

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


Correct
  • 1:
    Structural unemployment
  • 2:
    Seasonal unemployment
  • 3:
    Technological unemployment
  • 4:
    Frictional unemployment

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A Level Economics Quiz 2021 Part 3
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