The word count for this work is 1200 words, 300 words for each question.
Also, could you please answer to the multiple-choice questions please, by just highlighting the correct answer.
- What are the implications to the government being in long term debt?
- What is the impact of high levels of unemployment and what is the best way for a government to reduce unemployment?
- Discuss the implications of a government trying to promote “faster growth” within the economy.
- Detail the benefits of free trade to A) a country; B) a business within that country.
1 – In relation to economic indicators GDP stands for:
A – Gross Domestic Price
B – Gross Dimensional Product
C – Gross Domestic Product
D – Grand Domestic Price
2 – ___________ demand is the name for the total planned demand in a given period for all goods and services within an economy?
A – Total
B – Aggregate
C – Average
D – Annual
3 – ‘The consumption function’ suggests that consumption of goods increases when disposable income rises, what 3 other factors can lead to an increase in consumption?
A – Interest rates
B – Buyer confidence
C – The price of assets
D – Unemployment
4 – Aggregate Supply is defined as:
A – The quantity of goods & services an economy can produce at different price levels
B – The quantity of goods & services a business can produce at different price levels
C – The quantity of materials an economy can produce at different price levels
D – The quantity of good will an economy can produce at different price levels
5- Which of the following is not typically a government objective?
A – Low unemployment
B – Fast economic growth
C – Stable prices
D – Greater regional income inequality
6 – Which of the following would NOT be affected by a change in interest rates?
A – The cost of borrowing
B – The return on savings
C – The attractiveness of financial assets
D – Unemployment figures
7 – Which of the following is not an example of fiscal policy?
A – Higher interest rates
B – Lower income tax
C – Higher corporation tax
D – Greater government spending
8 – The government’s budget position measures the difference between:
A – Export spending and import spending
B – Government spending and income
C – Government consumption and investment
D – Consumption and savings
9 – Monetary policy does not include:
A – Changes to the interest rate
B – Changes to bank lending
C – Changes to bank borrowing
D – Changes to taxation rates
10 – If the economy grows the government’s budget position will automatically:
A – Improve due to increased spending
B – Worsen
C – Improve due to greater tax revenues
D – Stay the same
Unemployment and Inflation
11 – What is meant by inflation?
A – A sustained increase in the exchange rate
B – A sustained increase in the general price level
C – A sustained increase in firms’ costs
D – A one off increase in prices
12 – What might be an appropriate supply side policy to reduce unemployment?
A – Increasing unemployment benefits
B – Increasing the tax rate on earnings
C – Reducing the training budget for back to work schemes
D – Reducing the power of trade unions to push up wages
13 – Inflation is measured by
A – DTI
B – EMU
C – WTO
D – CPI
14 – Unemployment may lead to
A – An outward shift of the production possibility frontier
B – A movement along the production possibility frontier
C – Production outside of the production possibility frontier
D – Production within the production possibility frontier
15 – Which of the following is likely to be true with high, unanticipated inflation?
A – A country will become more internationally competitive
B – It will become easier for businesses to plan
C – Individuals with constant nominal income will be worse off in real terms
D – Costs will fall
16 – If prices are falling this is known as?
A – Deflation
B – Reflation
C – Inflation
D – Hyperinflation
17 – Which of the following is NOT a cause for unemployment
A – Structural changes to the economy
B – Seasonal demand
C – Lack of skilled workforce
D – New business and enterprise
18 – Supply side policies increase the _________________ which in turn reduces the natural rate of unemployment
A – Job acceptance rate
B – Jobs available
C – Taxation levels
D – Inflation levels
19 – Which of the following would NOT help control inflation……
A – Decrease the value of the currency
B – Control growth of the money supply
C – Try to control wages
D – Reduce aggregate demand
20 – Which of the following is NOT a consequence of unemployment:
A – Waste of resources (producing within the PPF)
B – Reduction in tax income
C – Increase in benefit payments
D – Increase in GDP
Growth and balance of payments
21 – Which of the following is NOT a stage of the economic cycle?
A – Boom
B – Recession
C – Slump
D – Decline
22 – Balance of payments records the value of transactions between one country and ______________________ over a given period of time?
A – Another country
B – The rest of the world
C – The rest continent
D – The rest of the EU
23 – Supply side policies help grow the economy, which of the following is NOT an example of a supply side policy?
A – Providing incentives for investment
B – Encouraging competition
C – Remove regulations for new ‘start ups’
D – Economies of scale
24 – Economic growth can be best shown by:
A – An outward shift of the production possibility frontier
B – An inward shift in the production possibility frontier
C – A fall in GNP
D – A lower GDP per person
25 – A recession occurs when?
A – GDP grows slowly
B – GDP grows quickly
C – There is negative economic growth for two successive quarters
D – There is zero growth for two successive quarters
26 – What does the J curve represent?
A – How the government’s budget position changes over time
B – How the exchange rate changes over time
C – How the current account position changes following a depreciation of the currency
D – How the current account position changes following an appreciation of the currency
27 – A current account trade deficit means that:
A – Spending on imported goods and services equals the export earnings over a given period
B – Spending on imported goods and services is greater than the export earnings over a given period
C –Spending on imported goods and services is less than the export earnings over a given period
D – Government spending on imported goods and services equals the export earnings over a given period
28 – “A fast growth of consumption helped by rising real incomes, strong confidence and surge in house prices and share prices”
This best describes which stage of the economic cycle?
A – Boom
B – Recession
C – Slump
D – Recovery
29 – Which of the following is NOT an example of a ‘Balance of payments’ entry:
A – Exports and imports of goods such as oil, agriculture, raw materials, machinery, transport etc
B – Exports and imports of services such as travel, financial and business services
C – Income/financial flows including investments and interest earned
D – Current GDP
30 – Which of the following is NOT a typical symptom of a recession?
A – Rising unemployment
B – A decline in consumer and business confidence
C – A contraction in consumer spending
D – Rising levels of purchasing
International business and trade
31 – Complete the sentence. A country is likely to export products if it has……?
A – A comparative advantage
B – A comparative disadvantage
C – A higher opportunity cost than other countries
D – High rates of inflation
32 – Complete the sentence. International trade……?
A – Moves production within a country’s production possibility frontier
B – Shifts a country’s production possibility frontier outwards
C – Enables a country to consume outside of its production possibility frontier
D – Shifts a country’s production possibility frontier inwards
33 – What is a tariff?
A – A tax on foreign products imported into a country
B – A limit on the number of foreign products that can be imported
C – A legal restriction on the volume of imports
D – A form of subsidy to domestic producers
34 – Which of the following is NOT an example of how to enter an overseas market?
A – Forming a partnership or venture with a local business in another country
B – Setting up your own business operations abroad
C – Taking over an existing business in that country
D – Selling imported goods in the UK
35 – What is the European Union?
A – A collection of countries with the same currency
B – A collection of countries which allow freedom of movement of people, goods and money between members
C – A union of countries which agree to trade only with each other
D – A union of countries which have the same tax rates
36 – Which of the following is NOT a benefit of protectionism?
A – Protect strategic industries that may be thought of as essential to the safety of the economy
B – Protects jobs in a particular industry that is suffering
C – Retaliation against actions taken by the other government to limit trade.
D – Keeping ALL domestic prices low
37 – The level of exports can be influenced by many factors, which of the following is NOT a factor?
A – The exchange rate
B – Barriers to trade being evident
C – Income levels abroad
D – Transportation
38 – What is protectionism?
A – Shielding a country’s domestic industries from foreign competition by taxing imports.
B – Shielding a country’s domestic industries from foreign competition by banning imports.
C – Looking after local labour over foreign labour
D – Providing additional support for home-grown organisations
39 – What is the term for when a government gives a business some capital allowing them to reduce their costs and undercut overseas producers?
A – Quotas
B – Tariffs
C – Subsidies
D – Administrative regulations
40 – Free trade exists where there are no barriers to trade; this means that businesses can easily export or import products, without limits being placed on the nature or level of trade between countries.
True or false
Type of service-Academic paper writing
Type of assignment-Essay
Pages / words-4/1100
Academic level-Freshman (College 1st year)
Language style-AU English