Spending on motoring as a % of household expenditure in the UK shows that motoring is ?

Related Mcqs:

1. Evidence suggests that the price elasticity of demand for motoring is ?

   A. absolutely inelastic
   B. Unitarily elastic
   C. Elastic
   D. inelastic

2. In a free market system, the amount of goods and services that any one household gets depends upon its ?

   A. income
   B. income and wealth
   C. wealth
   D. wage and interest income

3. When capital is owned by the firm as opposed to being directly owned by household capital income may take any of the following forms except ?

   A. interest
   B. dividends
   C. increases in stocks of goods
   D. retained earnings

4. One of the transmission mechanisms of monetary policy is through consumer demand when interest rates ________ household wealth ________ and consumption _________?

   A. rise; increase, increase
   B. rise, falls, increase
   C. rise, increase, falls
   D. rise, falls, falls

5. According to the Office of National Statistics UK, a husband who chooses to stay home and take care of household is ?

   A. Employed
   B. Not in the labour force
   C. A discouraged worker
   D. Unemployed

6. Estimated income and plane for expenditure is called Budget. What is Budget deficit ?

   A. Less Public spending than amount of revenue corporation
   B. Balance between public spending and amount of revenue
   C. More public spending than amount of revenue
   D. None of them

7. When the world Bank or IMF requires improved external balance in the short run the agency may condition its loan on expenditure switching that is ?

   A. switching spending from domestic to foreign sources
   B. devaluing local currencies
   C. increase trade restrictions by imposing quota
   D. increase government spending

8. Central banks in LDCs generally have less effect on expenditure and output than in LDCs because of ?

   I- an externally dependent banking system
   II- a poorly developed securities market
   III- a low percentage of demand deposits divided by the total money supply
   IV- the relative insensitivity of investment and employment to monetary policies

   A. I and II only
   B. III and IV only
   C. I, II and III only
   D. I, II , III and IV

9. If the US economy is forecast to come out of recession because military expenditure has increase then the exchange value of the UK pound will tend to ?

   A. depreciate
   B. not be affected
   C. fluctuate more than it would do therwise
   D. appreciate

10. Suppose the economy is initially in long-run equilibrium Then suppose there is an increase in military spending due to rising international tensions According to the model of aggregate demand and aggregate supply what happens to prices and output in the short run ?

    A. Price fall; output rises
    B. Price fall; output falls
    C. Price rise; output fall
    D. Price rise; output rise