Economics 2009 | Study Mode

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Question 21
A
expenditure method
B
income method
C
output method
D
value-added method
Explanation

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Correct option: D
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Question 22
A
an increase in imports
B
a decrease in the income stream
C
an increase in household consumption
D
a decrease in exports
Explanation

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Correct option: B
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Question 23
A
reserve ratio
B
liquidity ratio
C
interest rate
D
capital base
Explanation

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Correct option: A
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Question 24
A
increase the capital base of banks
B
provide more money to run the economy
C
minimize the rate of bank failures
D
enhance efficiency in bank operations
Explanation

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Correct option: C
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Question 25
A
commercial banks
B
money market
C
capital market
D
government
Explanation

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Correct option: C
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Question 26
A
production cost is high
B
factor prices decrease
C
there is too much money in circulation
D
government embarks on deficit financing
Explanation

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Correct option: A
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Question 27
A
balanced budget
B
national debt
C
budget deficit
D
budget surplus
Explanation

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Correct option: C
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Question 28
A
poverty alleviation
B
provision of educational infrastructure
C
provision of health services
D
improvement in workers income
Explanation

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Correct option: A
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Question 29
A
balanced budget
B
national debt
C
budget deficit
D
budget surplus
Explanation

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Correct option: C
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Question 30
A
be self-sufficient
B
raise general living standards
C
raise the level of production
D
reduce aggregate expenditure
Explanation

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Correct option: A

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