Q:
QUESTION 18
Which of the following might be expected to generate employment?
a) Economic growth that is capital intensive.
b) Higher taxes for small businesses.
c) A fall in the productivity of workers.
d) The promotion of exports and investment.
Q:
QUESTION 17
When the reserve bank prints more money and increases the money supply, this will cause prices
a) Decrease
b) Stabilise
c) Increase
d) Fluctuate
Q:
QUESTION 15
According to Keynesian economists, during a boom in economic activity
a) money supply should be increased.
b) interest rates should be cut.
c) government should increase its spending.
d) tax rates should be raised.
Q:
An economy is at equilibrium output when
a) \( Y=C+I+G+(X-M) \)
b) \( Y=A D+C+G+(X-M) \)
c) \( Y=A D+C+I+G+(X-M) \)
d) \( Y=A D+C+1+G \)
Q:
QUESTION 13
Which of the following is least likely to be associated with market failure, and is consequently least likely to
require any form of state regulation or intervention?
a) Hake fishing off the west coast of South Africa.
b) The provision of education services in government schools.
c) The provision of education services in private schools.
d) The market for fast foods.
Q:
An economy is at equilibrium output when
a) \( Y=C+1+G+(X-M) \)
b) \( Y=A D+C+G+(X-M) \)
c) \( Y=A D+C+I+G+(X-M) \)
d) \( Y=A D+C+I+G \)
Q:
QUESTION 9
With reference to Question 8 above, the measure of money that will not be immediately affected by the above
action by China's central bank is:
a) M1
b) M2
c) M3
d) Quasi money
Q:
QUESTION 8
China's central bank Monday conducted a total of 10 billion yuan (about \( \$ 1.4 \) billion) of reverse repos to
maintain liquidity in the banking system.
The interest rate for the seven-day reverse repos was set at 2 percent, according to the People's Bank of
China.
The move aims to keep stable liquidity in the banking system, the central bank said.
A reverse repo is a process in which the central bank purchases securities from commercial banks through
bidding, with an agreement to sell them back in the future."
The area of responsibility that China's central bank is undertaking with the above decision is that of:
a) Fiscal policy.
b) Service to the government.
c) Provision of economic and statistical services.
d) Maintaining financial stability.
Q:
QUESTION 8
"China's central bank Monday conducted a total of 10 billion yuan (about \( \$ 1.4 \) billion) of reverse repos to
maintain liquidity in the banking system.
The interest rate for the seven-day reverse repos was set at 2 percent, according to the People's Bank of
China.
The move aims to keep stable liquidity in the banking system, the central bank said.
A reverse repo is a process in which the central bank purchases securities from commercial banks through angreement to sell them back in the future."
he area of responsibility that China's central bank is undertaking with the above decision is that of:
Fiscal policy.
Service to the government.
rovision of economic and statistical services.
aintaining financial stability.
Q:
QUESTION 7
Which one of the following is NOT a shoncoming of measuring the economy using gross domestic product
(GDP)?
a) Only goods and services with a market price are Included in the calculations.
b) The gross domestic product (GDP) cannot account for the effect that inflation has on the economy.
c) Activities in the informal sector are often not taken into account.
d) An increase in expenditure from the perspective of the gross domestic product (GDP) often does not
consider the economic welfare of such increases.
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