BnT/F1 Group 1

Which THREE of the following are the goals of macroeconomic policy?

• Encouraging economic growth

• Low unemployment

• Achieving zero inflation

• Achievement of a balance between exports and imports

• Maximising a currency's foreign exchange value

Macroeconomics is the branch of economics that studies

• prices of individual goods.

• important, as opposed to trivial, issues.

• the way individual markets work.

• the economy as a whole

Which of the following is not true about determinants of the level of business activity

• When consumers are confident, they tend to demand more.

• Higher business confidence results in higher investment

• If firms raise their finance it will result in higher levels of investment.

• Advancements in technology do not result in efficient work practices.

What is the economic growth?

• The increase of amount of money per head of population

• Economic growth is the increase in the production of goods and services per head of population over a stated period of time

• The increase of total amount of products over a stated period of time

• A and B

What most popular factors are used to be used as measurement of economic growth

• GDP

• GNI

• GNP

• All of the above

• None of the above

Which of the following is a macroeconomic issue?

• how federal government budget deficits affect interest rates

• the cause of a decline in the price of peanut butter

• what determines the amount a firm will produce

• how a rise in the price of sugar affects the market for sodas

Which is not an disadvantage of economic growth

• Inflation

• Whealth gap

• Employment rates

• Environmental problems

How many factors that affect economic growth?

• 7

• 4

• 5

• 8

How many types of economic growth

• 3

• 4

• 2

• 5

Which one of the following is consistent with a government's policy objective to expand the level of economic activity?

• an increase in taxation

• an increase in interest rates

• an increase in personal savings

• an increase in public expenditure