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WorksheetsConsumption (part of AD)
Total questions: 20
Worksheet time: 7mins
Name
Class
Date
1.
What represents consumer expenditure in the AD equation?
a)
I
b)
G
c)
X-M
d)
C
2.
What can lower interest rates lead to?
a)
Increased taxes
b)
Decreased AD
c)
Increased consumption
d)
Lower wages
3.
What is a significant effect of consumer confidence on consumption?
a)
Decreases saving
b)
Decreases AD
c)
Increases consumption
d)
None
4.
How does consumer wealth affect consumption?
a)
No effect
b)
Wealth effect
c)
Direct tax effect
d)
Indirect effect
5.
What policy can directly increase disposable income and consumption?
a)
Fiscal policy
b)
Monetary policy
c)
Trade policy
d)
Environmental policy
6.
What can cause a shift in the AD curve?
a)
Constant interest rates
b)
Decreased consumer confidence
c)
Increased consumption
d)
Unchanged taxes
7.
What percentage of AD does consumer expenditure typically account for?
a)
0.33
b)
0.5
c)
0.66
d)
0.75
8.
What can higher interest rates lead to?
a)
Increased consumption
b)
Decreased borrowing and spending
c)
Increased investment
d)
Higher exports
9.
Which factor is likely to decrease consumption?
a)
Increased consumer confidence
b)
Lower interest rates
c)
Higher taxes
d)
Lower prices
10.
How does a recession in a major trade partner affect domestic consumption?
a)
Increases consumption
b)
Decreases exports
c)
No effect
d)
Increases AD
11.
What does an increase in consumer wealth usually lead to?
a)
Decreased consumption
b)
Increased savings
c)
Increased consumption
d)
Decreased AD
12.
How do demographics influence consumption?
a)
No influence
b)
Only affect supply
c)
Change consumption patterns
d)
Only affect prices
13.
What role does government spending play in AD?
a)
Decreases C
b)
Increases I
c)
Part of G
d)
Reduces X-M
14.
What effect do lower taxes have on consumption?
a)
Decrease
b)
Increase
c)
No change
d)
Fluctuate
15.
How does improved technology primarily affect AD?
a)
By reducing G
b)
By increasing I
c)
By decreasing C
d)
By increasing M
16.
Which of the following can increase AD?
a)
Increased M
b)
Decreased X
c)
Increased G
d)
Decreased I
17.
What happens to consumption when consumer confidence is low?
a)
It increases
b)
It decreases
c)
It remains unchanged
d)
It fluctuates
18.
What impact does a lower value of domestic currency have on exports and AD?
a)
Decreases exports
b)
Increases imports
c)
Increases exports
d)
No effect
19.
Which of the following would most likely cause a fall in AD?
a)
Increased confidence
b)
Lower interest rates
c)
Higher wages
d)
Higher taxes
20.
What might an aging population spend more on?
a)
Education
b)
Entertainment
c)
Healthcare
d)
Luxury goods
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