OCR F585 January 2012: Extract 1
Includes:
- Definitions that should come in handy for Extract 1 of the Stimulus Material - most of the definitions are taken from the textbook.
- Questions on the graphs
- Comprehension questions on the text
Apologies in advance - it is a mammoth quiz
- Created by: Josie
- Created on: 24-12-11 13:50
Other questions in this quiz
2. What is business confidence?
- A measure of how much firms think that their profits will fall
- A measure of how large firms stocks are
- A measure of how optimistic firms are feeling about the overall state of the economy
- A measure of how much firms think their profits will increase
- A measure of how optimistic consumers are feeling about the overall state of the economy
3. What are automatic stabilisers?
- Changes in net exports that take place automatically in response to the economic cycle
- Changes in government expenditure and taxation receipts that take place automatically in response to the economic cycle
- Changes in investment and consumer expenditure that take place automatically in response to the economic cycle
- Changes in net exports and consumer spending that take place automatically in response to the economic cycle
- Changes taxation receipts and consumer spending that takes place automatically during the recession phase of the business cycle
4. For example, automatic stablisers mean that when an economy is in a boom, taxation receipts would:
- Rise because more people are in employment so more people pay taxes
- Fall because less people are in employment so less people are in taxes
- Fall because more people are in employment so more people pay taxes
- Rise because less people are in employment so less people are in taxes
5. At the same time government spending would also:
- Fall because more people are in employment so the government spends less on unemployment benefits
- Rise because more people are in employment so the government spends less on unemployment benefits
Comments
No comments have yet been made