WorksheetsAD
Total questions: 15
Worksheet time: 8mins
What does AD stand for
market demand
effective demand
total demand
consumer demand
What is the formula for AD?
C-G+X-M
C+T+G+X+M
C-G-I-X-M
C+I+G+X-M
Which of the following is not a significant factor affecting consumer spending?
interest rates
consumer confidence
house prices
export demand
When consumer spending rises due to an increase in house prices we call this a........
income effect
demand effect
substitution effect
wealth effect
What do we mean by the accelerator effect?
a change in income leads to an insignificant change in investment
a change in income leads to a more than proportional change in investment
a change in investment leads to a more than proportional change in income
a change in income leads to a more than proportional change in GDP
What is the formula for net investment?
gross + depreciation
new - old
gross - depreciation
gross - inflation
What is the approx % of AD taken up by consumer spending in the UK?
40%
6%
63%
80%
What does the marginal efficiency of capital mean?
rate of savings v expected return on investment project
rate of savings v profit of firm
profit of firm v base rate
revenue v profit
What two tools does fiscal policy include
base rate and tax
base rate and govt expenditure
tax and govt expenditure
base rate and qe
Which of the following are two points in the economic cycle?
boom and bust
pop and snap
crackle and pop
ready and steady
What type of payment is unemployment benefit?
cash
delayed
transfer
advance
What is the largest component of UK govt expenditure?
education
transport
social security
military
Which of the following is not a factor explaining a trade deficit?
high incomes
strong currency
low productivity
low inflation
The UK has consistently run a what for the last 20 years?
trade surplus
current account surplus
trade deficit
balance of payments surplus
Including this lesson and assuming you attended every lesson, how many minutes have you spent in economics lessons at Hurtwood?
3,200
1,200
6,200
10,200
