Which of the following is a withdraw from the circular flow income stream ?

Related Mcqs:

1. Within the circular flow of income, an increase in domestic income will tend to increase ?

   A. exports
   B. taxes
   C. inventories
   D. imports

2. Suppose a project results in a net stream of $200 per year for 4 years, but nothing thereafter, Assume that the discount rate is 5 percent. The discounted value of the total income stream over the 4-year period is ?

   A. 800
   B. 40,000
   C. more than zero but less than 800
   D. less than zero

3. Total withdrawals from the circular flow of income include ?

   A. consumption savings and taxes
   B. savings government expenditure and imports
   C. savings taxes and exports
   D. savings taxes and imports

4. Equilibrium in the circular flow of income occurs when ?

   A. Injections = withdrawals
   B. There is a Bank Holiday
   C. Injections withdrawals
   D. None of these

5. The World Bank’s GNP per capita classification for low income middle income and high income countries respectively is ?

   A. less than $900, $900-$9000 and more than $9000
   B. less than $5000, $5000-$15000 and more than $15000
   C. less than $100, $100-$1000 and more than $1000
   D. less than $5000, $5000-$150000 and more than $150000

6. A tax for which high income taxpayers pay a smaller fraction of their income than do low income taxpayers is known as ?

   A. a proportional tax
   B. a regressive tax
   C. an equitable tax
   D. a progressive tax

7. If the income tax rate changes from 30% to 40% on income over Rs30,000 and a person’s income is Rs 31,000 then her marginal tax rate is ?

   A. 30%
   B. 10%
   C. 70%
   D. 40%

8. Which of the following statements regarding the circular-flow diagram is true ?

   A. If Susan works for BAe Systems and receives a salary payment, the transaction takes place in the market for good and services.
   B. If BAe Systems sells a military aircraft, the transaction takes place in the market for factors for production
   C. None of these
   D. The factors of production are owned by households

9. Leakages from the circular flow are _________ and __________?

   A. investment, savings, government expenditure
   B. savings, taxes net of subsidies imports
   C. consumption investment government expenditure
   D. consumption taxes imports

10. In the circular flow we would expect leakages to ___________ injections?

    A. equal
    B. be less than
    C. be greater than
    D. be less or greater than