Basic of Economics

A. Household’s purchases of food
B. Households’ purchase of a car
C. Household’s payment of rent for an apartment
D. Household’s purchase of stock in any XYZ corporation

A. Gross investment minus household investment
B. Gross investment minus govt. Investment
C. Gross investment minus capital consumption allowance
D. None of the above

A. Total sales in the economy
B. Total monetary transactions in an economy
C. The market value of all goods and services produced in an economy
D. Total spending in an economy

A. Expenditure method
B. Income method
C. Product method
D. All of the above

A. Fall in prices due to less circulation of currency
B. Fall in employment due to declining production
C. High inflation rate combined with high unemployment and unchanged consume demand
D. None of these

A. Changes in price caused by changes in demand
B. The rate of change of sales
C. The responsiveness of demand to price changes
D. The value of sales at a given price

A. Increasing government spending
B. Increasing public ownership of firms
C. Increasing the role of markets
D. Removing the profit motive

A. Bank loans
B. The payment without work
C. Tax payments
D. Payments made to all factors of production

A. National income
B. Per capita income
C. Poverty ratio
D. None of these

A. Local tax
B. Indirect tax
C. Direct tax
D. Rate