Economics section A

This is based on all choice questions from unit 1 of microeconomics. Most of these questions are from many different past papers. 

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1. What are goods provided by the government for people who are deemed to need them called?

  • Negative externalities.
  • Demerit goods.
  • Merit goods.
  • Positive externalities.
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2. The level of capital investment spending by private sector businesses tends to vary ______ with interest rates and ______ with business confidence

  • positively, positively
  • negatively, negatively
  • negatively, positively
  • positively, negatively

3. An increase in imports of consumer goods is most likely to have been caused by a

  • rise in direct taxation.
  • fall in the exchange rate.
  • rise in household disposable income.
  • rise in household saving.

4. Choice is an important element in the basic economic problem because

  • high demand leads to high prices.
  • wants increase with income.
  • limited resources have alternative uses.
  • incomes are distributed unequally.

5. Which one of the following is a measure of productivity?

  • output divided by employment.
  • the quantity of capital equipment used divided by its price.
  • the annual percentage increase in production.
  • the total amount of output produced each month.

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