Font size
WorksheetsEconomics 1st Mid term Assignment
Total questions: 150
Worksheet time: 3hrs 47mins
Economic growth is defined as?
The decrease in productive capacity of an economy
The increase of the prices of good within an economy
The inverse relationship between money and productive capacity
The increase in productive capacity of an economy
_________ is the effect of inflation remove from the current GDP figures.
Nominal wage
Real wages
CPI
Real GDP
What is a method to increase economic growth?
Increase labour productivity
Reduce government expenditure
Increase regulations
increase unemployment
When is an economy in a recession?
When there are 2 consecutive period of positive growth
When an economy's revenue exceeds its expenditure
When there are 2 consecutive periods of negative growth
When there are 2 consecutive periods of negative capital investment
what is a budget deficit?
When the governments revenue exceeds it expenditure
When the government forgets to collect taxes
When the governments expenditure exceeds its revenue
When the governments imports exceeds its exports
What does Gross Domestic Product
mean?
The total value of all goods and services a country imports.
The total value of all goods and services a country exports.
The total value of all goods and services produced within a country in one year.
The net loss in profits within a country due to imports.
An increase in the general level of prices for goods and services
Inflation
Hyperinflation
Reflation
disinflation
Demand-Pull Inflation
Rapidly rising prices that are out of control
Inflation
Hyperinflation
Reflation
disinflation
Demand-Pull Inflation
Rising prices with the rate of increase slowing down
Inflation
Hyperinflation
Reflation
disinflation
Demand-Pull Inflation
Rising prices as a result of consumers wanting to buy more goods and services than producers supply
Deflation
Cost Push Inflation
Reflation
Disinflation
Demand-Pull Inflation
A decrease in the general level of prices for goods and services
Deflation
Cost Push Inflation
Reflation
Disinflation
Demand-Pull Inflation
Rising prices as a result of rising production costs
Deflation
Cost Push Inflation
Reflation
Disinflation
Demand-Pull Inflation
High prices followed by lower prices and then high prices again
Deflation
Cost Push Inflation
Reflation
Disinflation
Demand-Pull Inflation
When deflation occurs the time value of money is affected how?
It stays the same
It speeds up
It is reversed
A dollar received in in the future will be worth more than one received today during deflation.
True
False
Demand-pull inflation is caused by consumers wanting less than businesses can supply.
True
False
A profit that allows a business to survive and grow
Normal Profit
Emotional Buying
Economizing
Markup
Impulse Buying
What type of print provider would be located at the site of a college or university?
Commercial printer
Publisher
In plant
Trade shop
Which of the following products or services does the graphic communications industry NOT provide to its customers?
Direct mail promotions
Commercial interior design
Consumer goods packaging
Children’s books
The SWOT Analysis
A. is used to devise the marketing plan,
B. includes Strengths and Weaknesses in an Internal analysis
C. includes Opportunities and Threats in an external analysis
All of the above
Enumerate five functions of Marketing Board
(a)
a plan for future expenditures of a given household.
expenditure
income
budget
savings
It is a term for when a taxing authority, usually a government, levies or imposes a tax.
Tax payers
Tax Credits
Tax rate
Taxation
Governments impose income taxes on financial income generated by all entities within their jurisdiction, including individuals and businesses.
payroll tax
consumption tax
inheritance tax
value added tax
income tax
It is a tax withheld by employers from each employee's salary and is paid to the government.
payroll tax
consumption tax
inheritance tax
value added tax
income tax
Our tax money is spent on all of the following EXCEPT:
Social Security
The Military
Private School Education
National Parks
Roads, police, schools, governmental agencies, fire and emergency services are all funded by taxes
true
false
Who primarily uses our tax money? (2 correct answers)
Your employer
The state government
The Federal government
Local Businesses
Total money you earn before taxes and other deductions.
Salary
Net income
Gross income
Wages
Price $17.95
Tax 6%
Mr. Barrett bought a new battery for his car. The battery cost $72. Since batteries are a taxable item, he had to pay a sales tax of 7.5%. What was the total cost of the battery in dollars and cents?
$79.50
$5.40
$77.40
$66.60
Mr. Lucas bought a new lounge chair for his game room. The one he chose was $425. He had to pay a sales tax of 8.2%. What was the amount of sales tax he paid on the chair?
$24.90
$44.30
$34.85
Not Here
Which of the following is not included in National Income?
Car purchased by a taxi driver
Clothes purchased by a household
Electricity charges paid by a tea factory
School fee paid by a student
National income does not include_____
Wages and salaries
Rent and Royalty
Student scholarship
Corporate Tax
1.How many approaches in calculating national income?
4
3
2
1
2.When will GDP at market price be equal to GDP at factor cost ?
Indirect taxes=subsidy
indirect taxes >subsidy
indirect taxes < subsidy
none of these
5.The value of the output of all goods and services produced within a country in a year.
total output
Gross Domestic Product
national income
net domestic product
The difference between total revenue and total cost is _____________
Cost
Production
Opportunity cost
Profit
PROFIT Is expressed mathematically as
TR+TC
TC+AC
TR-TC
TR+TC
CAPITALIST economy is also known as _________
Close market economy
Open market economy
Free market economy
Monopoly
_____________ are things that people make or use to satisfy their needs and wants.
Goods
Services
Producers
Consumers
________________ are activities that satisfy people’s needs and wants.
Goods
Services
Needs
Wants
______________ are people who use natural resources, human resources, and capital resources to make goods or provide services.
Producers
Services
Goods
Resources
________ uses tax revenue from individuals and businesses to provide public goods and services.
Individuals
Government
Businesses
Private Financial Institutions
Individuals (households) own resources used in production, sell resources for _____, and use the ______ to purchase products.
Income
Taxes
Interest
opportunity cost
What type of business ownership has 2 or more owners who share the risk and share the profit?
Proprietorship
Partnership
Corporation
Public
Which of the Following is NOT a Government Agency that regulates business?
Federal Communications Commission(FCC)
Environmental Protection Agency
(EPA)
Federal Trade Commission (FTC)
Federal Emergency Management Agency (FEMA)
money paid to the government through income, sales, and purchase of property
taxes
goods
scarcity
human resource
A good made in the United States and sent to other countries
export
consumer
savings
taxes
A ban on trade with a country or group of countries, usually for political reasons; a type of trade barrier.
Protective Tariff
Import Quota
Trade Embargo
VER
The value of one currency in terms of another.
Exchange Rate
Term Currency
Currency Term
An international organization based in Geneva that monitors and enforces rules governing global trade.
World Trade Organization
United Nations
World Bank
NAFTA-USMCA
An international organization formed after WWII to promote international peace, security, and cooperation.
World Trade Organization
United Nations
World Bank
NAFTA-USMCA
An international bank that offers low-interest loans, advice, and information to developing nations; an agency of the United Nations.
World Trade Organization
United Nations
World Bank
NAFTA-USMCA
Which of the following is international trade?
Trade between countries
Trade between regions
Trade between provinces
Both (b) and (c)
What is the meaning of international trade?
The movement of goods and services between different countries
The exchange of ideas and cultural practices between nations
The establishment of diplomatic relations among countries
The formation of international agreements for military alliances
What is a common barrier to international trade?
Tariffs and import/export quotas
Promotion of free trade agreements
Cultural exchange and mutual understanding
Shared economic interests among nations
What is the impact of international trade on employment?
Increased unemployment due to import competition
Decreased job opportunities in domestic markets
Limited impact on employment levels
Increased job opportunities due to export expansion
Which of the following is a key benefit of international trade?
Increased competition leading to higher prices
Reduction in global economic inequality
Decreased availability of goods and services
Greater reliance on domestic production only
What is a trade deficit?
When a country exports more goods than it imports
When a country imports more goods than it exports
When a country has an equal balance of imports and exports
When a country does not engage in international trade
What is a trade barrier?
A measure that restricts or prevents the free flow of goods and services across borders
A country's comparative advantage in producing a particular good
A form of economic aid provided to developing countries
A financial penalty imposed on countries with trade surpluses
What is the World Trade Organization (WTO)?
An international organization that promotes global environmental conservation
A group of countries that aim to establish a global military alliance
An intergovernmental body that regulates and promotes international trade
A forum for cultural exchange and diplomatic negotiations among nations
Which of the following is an example of a non-tariff barrier to international trade?
Import quotas
Export subsidies
Language differences
Trade agreements
When a countries exports exceeds its imports
Trade Deficit
Trade Surplus
Free Trade
Currency Appreciation
An increase in the value of a currency; one currency can buy more of another
Currency Depreciation
Foreign Direct Investment
Currency Appreciation
Tariffs
A decrease in the value of a currency; it takes more of your currency to buy another
Currency Appreciation
Trade Surplus
NAFTA
Currency Depreciation
What is a trade surplus?
when the value of exports exceeds the value of imports
when the value of imports exceeds the value of exports
when the values of imports and exports are equal to each other
when the value of money greater than the amount of goods and services imported
What is a trade deficit?
When the value of exports exceeds the value of imports
when the value of imports exceeds the value of exports
when the values of imports and exports are equal
when the value of imports for one nation is greater than the value of imports for another nation
The country of Algonia produced and then shipped out $5 billion in goods and services to other nations. It brought in $4 billion in goods and services? What does this country have?
A balanced budget
A trade deficit
A trade balance
A trade surplus
Carterville imported $10 billion in goods and services and exported $9 billion in goods and services. Which of the following does Carterville have?
a trade deficit
a balanced budget
a trade surplus
a trade balance
Why is this picture representative of a *favorable* balance of trade? (meaning the country has an advantage)
the country does not have anything favorable in this picture
the country is buying more than they are selling
the country is selling more than they are buying
Head office of World Trade Organisation is located in
China
Egypt
USA
Geneva, Switzerland
Balance of Trade shows a Surplus of Rs. 1200 crores, and the Imports is Rs. 500 crores. What will be the value of Exports?
Rs. 700 crores
Rs. 1700 crores
Rs. (-) 700 crores
None of the above
The Balance of Trade shows a deficit of Rs. 5000 crores and the value of imports are Rs. 9000 crores, what is the value of exports?
Rs. 14000 crores
Rs. (-) 4000 crores
Rs. 4000 crores
Rs. 7000 crores
What does a positive balance of trade indicate?
A) Exports exceed imports
B) Imports exceed exports
C) Balance between imports and exports
D) No trade activity
What is the formula to calculate the balance of trade?
A) Balance of Trade = Exports - Imports
B) Balance of Trade = Imports - Exports
C) Balance of Trade = Exports + Imports
D) Balance of Trade = Exports × Imports
If a country's exports are valued at $800 billion and its imports are valued at $600 billion, what is its balance of trade?
A) $200 billion surplus
B) $200 billion deficit
C) $400 billion surplus
D) $400 billion deficit
If a country's imports are $600 million and its balance of trade is $200 million surplus, what is the value of its exports?
A) $400 million
B) $800 million
C) $200 million
D) $1 billion
A nation's exports are valued at $1.2 trillion and imports at $1.5 trillion. What is its balance of trade?
A) $300 billion surplus
B) $300 billion deficit
C) $700 billion surplus
D) $700 billion deficit
A nation's exports are valued at $900 billion and imports at $950 billion. What is its balance of trade?
A) $50 billion surplus
B) $50 billion deficit
C) $100 billion surplus
D) $100 billion deficit
What is the balance of trade also known as?
Trade exchange
Trade deficit
Trade balance
Trade surplus
How can weak domestic industry impact a country's trade balance?
It can lead to a trade surplus
It can contribute to a trade deficit
It has no effect on trade balance
It promotes international trade agreements
What does a trade deficit mean?
Country buys more than it sells
Country has a strong economy
Country sells more than it buys
Country has a surplus of goods
What does the balance of trade measure?
Difference between exports and imports
Difference between taxes and subsidies
Difference between savings and investments
Difference between production and consumption
Balance of payment is measured as
Difference between visible items of exports and imports
Difference between invisible items of exports and imports
Difference between external and internal flow of gold
Difference between all receipts of foreign exchange and payment of foreign exchange
In which of the following categories are there transactions of balance of trade recorded?
Visible items
Invisible items
Capital transfers
All of these
Current account records transactions relating to
Export and import of goods
Non factor and factor income
Current transfers
All of these
Which of the following items related to BOP on capital account?
Foreign investment
Loans
NRI remittances
All of these
Which of the following are not included in balance of trade?
Payment of interest and dividend
Expenditure by tourists
Borrowing from rest of the world
All of these
If the value of visible exports exceeds the value of visible imports balance relates to;
Current account BOP
Capital account BOP
Balance of trade
None of these
Unilateral transfers are
One sided payments
Reciprocal payments
Factor incomes
None of these
Suppose in BOP occurs when
Receipts =payments
Receipts < payments
Receipts > payments
Both a and c
Balance of trade is a part of
Current account BOP
Capital account BOP
Official reserves account
None of these
Disequilibrium in Balance of payments leads to:
Increase or decrease in official reserves with RBI
Increase or decrease in rate of commercial banks
Both A and B
None of these
which is systematic record ofall the economic transactions between one country and rest of the world
Balance of trade
Balance of transactions
Budget
Balance of payments
which one of the following items is an intangible item in balance of payments statement?
Export of food grain
import of crude oil
banking services provided in other countries
import of steel by steel industry
current account may be
visible items
invisible items
unilateral transactions
all of above
If value of visible exports is greater than the value of invisible imports, the balance relates to ____
Currrent Account BOP
Trade deficit
Capital Account BoP
None of the above
Which one of the following statements deals with debts and claims of a country ?
Balance of Capital Account
Balance of trade Account
Balance of Current Account
Balance of Service
Taxes levied on personal and corporate incomes and wealth, and collected directly from those people and organizations responsible
for paying them
Direct Taxes
Indirect taxes
Property Taxes
VAT
Corporate Taxes
Taxes on consumption or expenditure. They are normally imposed on producers who will pass on as much of the burden of these taxes
as possible to the consumer
Direct tax
Indirect tax
Optional Tax
National tax
A tax on company profits
Corporation tax
Business tax
A type of tax that is added to goods and services as a percentage
of their value
A tax on the sale of specific goods usually in the form of a fixed charge
per unit sold
Customs duties or border taxes imposed on certain imported goods
VAT
Polls tax
Toll fees
Tariffs
A tax by which the tax rate increases as the taxable base increases. If the tax base is income then a person with a high income will pay proportionally more of his or her income in tax than a person with a low income
An individual or business entity that is obligated to pay taxes to a federal, state, or local government.
Taxation
Tax creditors
Taxpayers
Tax rate
It is a term for when a taxing authority, usually a government, levies or imposes a tax.
Taxpayers
Tax credits
Taxation
Tax rate
A tax in which the tax rate increases as the taxable amount increases.
Indirect Tax
Sales Tax
Progressive Tax
Regressive Tax
A tax in which the tax rate decreases as the amount subject to taxation increases.
Direct Tax
Regressive Tax
Proportional Tax
Progressive Tax
P.A.Y.E. stands for (a)
What are taxes?
the amount of money citizens and businesses charge the government so they can pay all their bills.
the amount of money citizens and businesses are required to pay so the government can function and provide services.
the amount of money citizens and businesses are required to pay so they are protected from criminal organizations.
the amount of money citizens and businesses pay the government because it makes them happy.
Who is the biggest employer in the nation?
Amazon
The Federal Government
Ford Motor Company
Sales tax is the tax you pay
when you buy something.
when you sell something.
when you barter.
when you give something as a gift.
Economists use the definition: "A compulsory contribution to State Revenue" for which of the words below?
Subsidy
Tax
Extortion
Supply
If the government placed a specific tax on refrigerators, how would this effect the equilibrium price & quantity of refrigerators?
Price (paid by consumers) would increase, Quantity Demanded would decrease
Price (paid by consumers) would decrease, Quantity Demanded would increase
Price (paid by consumers) would increase, Quantity Demanded would increase
Price (paid by consumers) would decrease, Quantity Demanded would decrease
Value Added Tax is a/an
Indirect Tax
Direct Tax
Local Tax
Personal Tax
________are funds used not only to keep the government machinery going, but also to enable the government to carry out its various fiscal functions of allocation, distribution, and stabilization
Public revenues
Grants
Fiscal Policy
Monetary Policy
________ cover proceeds from sales of fixed capital assets or scrap thereof and public domain and gains on such sales like sale of public lands, buildings and other structures, equipment, and other properties recorded as fixed assets.
Tax Revenue
Extra-ordinary Income
Capital Revenue
Borrowings
Which of the following is not a component of Public finance
Public Debt
Public Expenditure
Public Finance
Public Revenue
Which is the end and aim of the collection of revenues?
Public Expenditure
Public Revenue
Public Debt
None
Name the book written by Adam Smith
Wealth of Nation
Wealth of Finance
Health and Finance
Public Finance
Who is the Father of Public Finance?
Adam Smith
Marshall
Peter
Musgrave
Explain the importance of public finance in a country's economy.
Public finance has no impact on economic stability
Public finance is only important for personal savings
Public finance is primarily used for military spending
Public finance is important for funding public goods and services, redistributing income, regulating the economy, and maintaining economic stability.
What is public finance?
Public finance is the study of the role of the government in the economy, including how the government raises revenue and how it spends that revenue.
Public finance is the study of international relations
Public finance is the study of personal finance
Public finance is the study of environmental economics
What are the sources of revenue for the government in public finance?
Investments
Donations
Taxes, fees, borrowing, grants, income from government-owned enterprises
Lottery earnings
Discuss the concept of public expenditure.
Public expenditure refers to personal spending on luxury items.
Public expenditure is the allocation of funds for military purposes only.
Public expenditure is the government spending on goods and services to benefit the public.
Public expenditure is the government's investment in private businesses.
Explain the role of taxation in public finance.
Taxation helps generate revenue for the government to fund public expenditures and achieve economic stability.
Taxation leads to increased unemployment rates
Taxation is primarily used to control the population growth
Taxation has no impact on government revenue
What is a government budget and why is it important in public finance?
A government budget is a document outlining the budget for a specific household.
A government budget is a financial plan outlining the government's expected revenue and proposed spending for a specific period. It is important in public finance as it helps allocate resources efficiently, prioritize government programs, control spending, and ensure transparency and accountability.
A government budget is a plan for individuals to manage their personal finances.
A government budget is a tool used by private companies to track their profits and losses.
Discuss the concept of public debt and its implications.
Public debt is the total amount of money owed by the government to creditors, which has no impact on the economy.
Public debt is the total amount of money owed by the government to creditors, which can lead to economic instability, increased interest payments, and the risk of default.
Public debt is the total amount of money owed by individuals to the government, which can lead to economic stability and reduced interest payments.
Public debt is the total amount of money owed by the government to creditors, which always results in increased government spending.
Refers to government decisions on taxation, expenditures, profit and income generation, borrowings for the achievement of government objectives
Monetary Policy
Fiscal Policy
Taxation Policy
Expenditures Policy
________ is the study of income, expenditure, borrowing and financial policy and administration of “the government.
Accounting
Economics
Public Finance
Private Finance
Refer to all cash inflows of the national government treasury which are collected to support government expenditures but do not increase the liability of the national government.
Expenditures
Consumption
Revenues
Grants and Donations
_________ is a plan of financial operation composed of estimated or proposed expenditure for a given period or purposed and the proposed means of financing them.
Forecasts
Budget
Debt
Options
refers to the funds collected by the government through various sources, primarily taxation
PUBLIC FINANCE
PUBLIC REVENUE
PUBLIC TAX
Governments collect income tax from individuals and businesses based on their earnings.
TAX
INCOME TAX
SALES TAX
CERTIFICATE OF INDEBTEDNESS
BONDS
SHARE
DIVIDENDS
PUBLIC expenditure refers to expenditures made by................
Private firms
Public authorities
NGOs
International agencies.
Which of the following is a direct tax?
Excise duty
Customs duty
Service tax
Income tax
Government generally impose higher taxes on rich, moderate taxes on the not- so- rich and exempt the poor from paying taxes. This principal of taxation is called.............
Progressive taxation policy
Heavy taxation policy
Direct taxation policy
Protective taxation policy
_____ is a loan taken by the government from its own people as well as from foreign countries.
public debt
public revenue
public expenditure
deficit financing
Our tax money is spent on all of the following EXCEPT:
Social Security
The Military
Private School Education
National Parks
