If VAT rates rise, then costs are likely to ___ and demand is likely to ____?

Related Mcqs:

1. If the economy is in the recessionary phase of the business cycle, aggregate demand ___ unemployment ____ inflation ___ and the current account of the balance of payments is likely to move towards ____?

   A. falls; falls; falls; surplus
   B. is static; low; rises; deficit
   C. falls; rises; falls; surplus
   D. rises; falls; rises; deficit

2. If the economy is in the expansionary phase of the business cycle, aggregate demand ____ unemployment ____ inflation ____ payments is likely to move towards ____?

   A. falls; rise; falls; surplus
   B. is static; low; rise; deficit;
   C. falls; falls; falls; surplus
   D. rise; falls; rises; deficit

3. If interest rates rise then costs are likely to _______ and demand is likely to _________?

   A. rise, fall
   B. rise; rise
   C. fall; fall
   D. fall; rise

4. Under floating exchange rates, expectations of higher interest rates are likely to cause an ____ of the exchange rate?

   A. depreciation
   B. appreciation
   C. fall
   D. devaluation

5. The substitution effect of a rise in the price of labour will ____ the quantity of labour and the output, effect will ____ it

   A. increase; increase
   B. increase; reduce
   C. reduce; reduce
   D. reduce; increase

6. If the economy is at the peak of the business cycle, aggregate demand ____ unemployment _______ inflation _______ and the current account of the balance of payments is likely to move towards _______?

   A. rise; falls; rise; deficit
   B. falls; rises; falls; surplus
   C. falls; falls; falls; surplus
   D. is static; low; rises; deficit

7. If the economy is in the though phase of the business cycle, aggregate demand ____ unemployment ______ inflation ______ and the current account of the balance of payments is likely to move towards ________?

   A. falls; falls; falls; surplus
   B. falls; rises; falls; surplus
   C. is static; low; rises; deficit
   D. rises; falls; rises; deficit

8. VAT is a good example of which kind of tax ?

   A. Specific
   B. Exercise duty
   C. Direct
   D. Ad valorem

9. VAT is a good example of which kind of tax ?

   A. specific
   B. Direct
   C. Ad valorem
   D. Excise duty

10. In the UK, electricity industry parts are a ____ and other parts are ___ ?

    A. nationalized; privatized
    B. natural monopoly; potentially competitive
    C. cartel; a sellers’ market
    D. monopolistic competition duopoly