REVISION 1 - PUBLIC ECONOMY MANAGEMENT

The term PPC refers to

• Purchasing Power Curve

• Production Plan Cost

• Production Power Club

• Production Possibilities Curve

All else being equal, the Law of Supply and Demand indicates that the following are true, except for:

• Price decreases, demand increases.

• Price increases, demand increases

• Price increases, supply increases.

What is the function of a central bank?

• Taking deposits from the people

• Implementing monetary policy

• Lending to businesses

• Determining inflation and tax rates

Fiscal policy consists of government’s

• Revenue and taxation

• Taxation and credit control

• Expenditure and investment

• Expenditure and taxation

GDP is an important economic measurement because it

• Provides valuable data on employment rate

• Measures the combined total of all intermediate and final goods produced.

• Measures all final goods and services produced by a country

• Includes all economic activity, including financial transactions and purchases of used goods

Which of the following would not cause as shift in demand?

• Lower supply

• Decrease in income

• Raining season

• Increase in prices

Which of the following would cause a change in supply?

• A change in market price

• Government introduced a new tax

• A change of number of sellers

• All of above

What does this graph show?

• Shortage

• Surplus

• Supply table

• Equilibrium