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Worksheetsdefinitionals
Total questions: 60
Worksheet time: 33mins
Name
Class
Date
1.
The part of a nation's balance of payments that deals with merchandise (or visible) imports or exports
a)
balance of payments
b)
current account
c)
capital account
d)
balance of trade
2.
A fall in the value of a country's currency on the exchange market, relative either to a particular other currency or to a weighted average of other currencies.
a)
decrease in value of er
b)
depreciation
c)
devaluation
d)
pegged adjustment
3.
A legal limit on the quantity of a particular product that can be imported or exported
a)
embargo
b)
quota
c)
voluntary export restraint
d)
excise tax
4.
The acquisition of capital through shares. Usually refers to such transactions across national borders and/or across currencies.
a)
investment
b)
profit
c)
portfolio investment
d)
direct investment
5.
the ratio of export prices to import prices. It can be interpreted as the amount of import goods an economy can purchase per unit of export goods.
a)
balance of trade
b)
trade weighted index
c)
trade deficit
d)
terms of trade
6.
The dynamic path followed by the balance of trade in response to a devaluation, which typically causes the trade balance to worsen before it improves,
a)
deterioration in current account deficit
b)
deterioration in terms of trade
c)
j curve
d)
laffer curve
7.
A fall in the value of a currency that has been pegged, either because of an announced reduction in the par value of the currency with the peg continuing, or because the pegged rate is abandoned and the floating rate declines
a)
pegged exchange rate
b)
devaulation
c)
depreciation
d)
decrease in price of exchange rate
8.
An increase in the price level caused by a sustained increase in firms’ costs of production
a)
cost push inflation
b)
creeping inflation
c)
hyperinflation
d)
exported inflation
9.
Unemployment that results from the decline in a particular industry, leaves people unemployed do not have the skills needed by the industries that are growing
a)
stagflation
b)
structural unemployment
c)
systemic unemployment
d)
cyclical unemployment
10.
policy to boost aggregate demand, output and jobs – includes lower interest rates and increasing money supply
a)
expanionary fiscal policy
b)
Expansionary monetary policy
c)
Multiplier
d)
supply side policy
11.
If there is an initial injection (e.g. a rise in exports) into the economy then the final increase in aggregate demand and real GDP will be greater.
a)
economic growth
b)
multiplier
c)
keynesian economic policy
d)
accelerator
12.
If people save more in a recession, it will reduce consumption and thus AD will fall, impeding economic growth and, eventually, lowering the general level of savings
a)
contractionary monetary policy
b)
savings cycle
c)
disinflation
d)
paradox of thrift
13.
A persistent fall in the general price level of goods and services
a)
inflation
b)
recession
c)
deflation
d)
disinflation
14.
fiscal changes as the economy moves through stages of the business cycle – e.g. a fall in tax revenues from the circular flow in a recession.
a)
Automatic stabilizers
b)
expansionary foscal policy
c)
multiplier
d)
downturn
15.
decisions by a government to reduce the amount of government borrowing (i.e. cut the size of a fiscal deficit) over a period of years despite poor economic conditions
a)
depression
b)
negative multiplier
c)
fiscal austerity
d)
budget deficit
16.
A measure of the extent to which groups of households, from the bottom of the income distribution upwards, receive less than an equal share of income.
a)
gini coeffiecient
b)
lorenz curve
c)
laffer curve
d)
poverty line
17.
The introduction of new money into the national supply by a central bank. The idea is to add more money into the system to lower the risk of depression and deflation and encourage banks/people to borrow and spend
a)
expansionary monetary policy
b)
quantatative easing
c)
hyperinflation
d)
credit creation
18.
These consist of materials and supplies which are stored for use in production, work-in progress, finished goods and goods for re-sale
a)
output disequilibrium
b)
surplus
c)
inventory
d)
disinvestment
19.
Where workers bid for higher wages because they have seen their real income eroded by rising prices. This can lead to a further burst of cost-push inflation
a)
hyperinflation
b)
decrease in AS
c)
wage price spiral
d)
enterprise bargaining
20.
A statistical relationship between unemployment and inflation
a)
phillips curve
b)
J curve
c)
laffer curve
d)
delawaugh curve
21.
The proportion of any change in income that is spent rather than saved
a)
income elasticity
b)
income determinants
c)
marginal propensity of consumption
d)
leakages
22.
more than three quarters of negative economic growth and very high unemployment
a)
deflation
b)
recession
c)
depression
d)
downturn
23.
The process whereby the economic gains from economic growth pass down throughout the entire society eventually giving rise to development
a)
Trickle
down development strategy
b)
export oriented growth strategy
c)
economic growth
d)
harrod domar model
24.
Official development assistance that takes place between a donor country and a recipient country
a)
bilateral aid
b)
multilateral aid
c)
tied aid
d)
Foreign direct investnment
25.
a rate of inflation so high that the value of money becomes close to worthless.
a)
hyperinflation
b)
imported inflation
c)
quantitative easing
d)
stagflation
26.
an expansion of world trade in goods and services , movement of people, ideas, and money leading to greater international Independence
a)
international trade
b)
trade liberalisation
c)
globalisation
d)
protectionism
27.
A composite index based on real GDP per capita (PPP), life expectancy at birth and educational achievement that measures socio-economic development
a)
HDI
b)
CPI
c)
GNI
d)
ISEW
28.
where resources are inefficiently allocated due to imperfections in the working of the market mechanism.
a)
boom and bust
b)
shortages
c)
social inequity
d)
market failure
29.
when a country is able to produce a good more cheaply relative to other goods produced domestically than another country.
a)
comparative advantage
b)
absolute advantage
c)
economies of scale
d)
specialisation
30.
A maximum limit for a price above which it is prevented from moving
a)
floor price
b)
price ceiling
c)
minimum price
d)
a subsidised price
31.
A group of producers who act together to fix price, output or conditions of sale
a)
monopoly
b)
oligopoly
c)
cartel
d)
collusive monopolistic competition
32.
demand curve for a non-collusive oligopolist based on the assumption that rivals will match price decreases and ignore price increases.
a)
inelastic
b)
elastic
c)
kinked
d)
price matched
33.
the forces that reduce the average cost of producing a product as the firm expands the size of its output in the long run.
a)
economies of scale
b)
technical efficiency
c)
allocative efficiency
d)
dynamic efficiency
34.
commodities whose demand varies inversely with money income.
a)
primary commodities
b)
inferior goods
c)
veblen goods
d)
giffen goods
35.
specific taxes imposed on imported products to improve the competitive position of domestic producers of the same or similar products.
a)
quota
b)
subsidy
c)
import quota
d)
tariff
36.
the amount of other products that must be forgone or sacrificed to obtain a unit of any product.
a)
diseconomies of scale
b)
fallacy of composition
c)
opportunity cost
d)
marshall lerner condition
37.
the measure of how responsive consumers’ demand quantity is to a change in the price of a product.
a)
proce elasticity of supply
b)
cross price elasticity of demand
c)
price elasticity of demand
d)
income elasticity of demand
38.
the combining of two or more competing firms, with a resulting increase in size, market share and economic power.
a)
economies fo scale
b)
allocative efficiency
c)
technical efficiency
d)
merger
39.
costs or benefits associated with the production or consumption of a good or service that flow on to parties external to the market transaction.
a)
pollution
b)
merit or demerit goods
c)
positive or negative externalities
d)
market failure
40.
is concerned with specific economic units and a detailed consideration of the behaviour of these individual units.
a)
business economics
b)
microeconomics
c)
cost benefit analysis
d)
macroeconomics
41.
a market in which there is only one buyer of the product**
a)
monopoly
b)
monopsony
c)
monopolistic competition
d)
job embargo
42.
occurs when all available resources are devoted to the combination of goods most wanted by society.
a)
Allocative
efficiency:
b)
Natural
monopoly:
c)
Deadweight
loss:
d)
technical efficiency
43.
as successive units of a variable resource are added to a fixed resource, eventually the marginal product attributable to each additional unit of the variable resource will decline.
a)
law of marginal returns
b)
law of diminishing returns
c)
opportunity cost
d)
marginal product
44.
a period of time in which all necessary adjustments to factors of production can be made.
a)
keynesian range
b)
long run
c)
short run
d)
PPC range
45.
occurs where, due to the nature of technology required in the production process and the size of the market
a)
natural monopoly
b)
private monopoly
c)
monopoly
d)
monopsony
46.
when a given product is sold at more than one price and the price differences are not justified by cost differences.
a)
price discrimination
b)
supernormal profit
c)
kinked demand curve
d)
collusive oligopoly
47.
To trade.
a)
Taxes
b)
Barter
c)
Service
d)
Producer
48.
When it costs more to make a good than what you sell the good for.
a)
Loss
b)
Profit
c)
Tax
d)
Service
49.
Resources found in nature like air, soil, sunshine, water, coal, plants, and animals.
a)
Human Resources
b)
Natural Resources
c)
Nonrenewable Resources
d)
Capital Resources
50.
If the demand of a product drops, you would expect the price of the product to...
a)
rise
b)
stay the same
c)
go up
d)
decrease
51.
Which economic system would be the worst for competition between producers?
a)
command
b)
market
c)
Traditional
52.
Enjoying art at a museum is an example of
a)
A. Production
b)
B. Exchange
c)
C. Consumption
d)
D. Transfer
53.
The Law of Supply says that as the _____ goes up, people make _______.
a)
cost, more
b)
cost, less
c)
price, more
d)
price, less
54.
The letter Q stands for
a)
quantity
b)
quality
c)
quagmire
d)
queen
55.
Coca-Cola and Pepsi would be
a)
complements
b)
substitutes
c)
inputs
d)
independent goods
56.
Resources that are made by people to make other things.
a)
Renewable Resources
b)
Capital Resources
c)
Human Resources
d)
Natural Resources
57.
A person who comes up with a product or service, and finds the money and time to produce this new product.
a)
Entrepreneur
b)
Incentive
c)
Specialization
d)
Barter
58.
Money that the government collects from individuals and businesses to pay for public goods and services
a)
Profit
b)
Tax
c)
Service
d)
Loss
59.
Economics seeks the answer to the basic question of how to deal with ______.
a)
money
b)
hunger
c)
demand
d)
scarcity
60.
I am a farmer in Africa, and have always traded for my goods. I have a _____ economy.
a)
Traditional
b)
Command
c)
Market
d)
Mixed
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