Question QUESTION 1 Various possible answers are provided for each question. C

QUESTION 1

Various possible answers are provided for each question. Choose the correct answer and only write down the letter next to the question Ex 1 A.

1.1 Which ONE of the following is not a method of calculating national income?

A expenditure method

B output method C income method D taxation method

1.2 Technological development is essential for future economic growth because it

A accelerates the economic growth rate

B increases the competitiveness of industries

C leads to further inventions, innovations and scientific discoveries

D all the above-mentioned

1.3 An increase in the following would likely lead to a decrease in national income: A consumption expenditure

B plant and equipment investment

C imports

D residential construction

1.4 Which ONE of the following is not a wage system?

A incentive

B piece

C olace

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D Time

1.5 Which of the following would be considered a transfer payment?

A payment for a train journey

B monthly instalments on a car

C social security payments

D payment for a room in a hotel

1.6 GOP is the market value of all final goods and services produced in a …

A given period of time

B given period of time after deduction of indirect business taxes

C given period of time after deduction of depreciation

D given period of time excluding exports

1 .7 The most general scale used to measure inflation is the … index.

A consumer’s

B consumer’s price C production price D selling price

1.8 Stagflation occurs where prices

A drop in an economic recession

B rise in an economic revival

C rise ion an economic recession

D drop in an economic revival

1.9 Macro-economics …

A studies the functioning of the economy in its entirety

B offers explanations for variations in economic processes over time

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C measures economic processes over time

0 involves all of these

1.10 The national income is a measure of ::

A income earned in producing the GOP

B earned and unearned incomes received in a given period of time

C income earned in producing the GOP less transfer payments

0 income earned in producing the GOP minus indirect business taxes

1.11 Consumers will tend to buy more of the product when: A its price is reduced

B their income rise

C the prices of competing products rise

0 all the above-mentioned

1.12 The following factors influence the supply of labour: (i) labour force

(ii) pension age

(iii) risk factor involved in various occupations

(iv) MIP of labour

A (i), (ii) and (iv) B (i) and (ii)

C (i) , (ii) and (iii)

0 (iii and (iv)

1.13 Which of the following is not a method to combat unemployment?

A economic growth

B unemployment insurance

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