Economics 2015 | Study Mode

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Question 51
A
less tax
B
divided by tax
C
plus tax
D
multiplied by tax
Explanation
Disposable income can only be obtained if tax has been deducted. So it is the income available for savings and spending after the deduction of personal income tax

Correct option: A
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Question 52
A
socialist system
B
mixed system
C
capitalist system
D
traditional system
Explanation
capitalist system is where the private individuals controlled the means of production and exchange

Correct option: C
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Question 53
A
surplus budget
B
deficit budget
C
balanced budget
D
minus budget
Explanation
deficit budget is a situation whereby government revenue is less than government expenditure.

Correct option: B
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Question 54
A
supply of money
B
value of money
C
demand for money
D
attribute of money
Explanation
supply of money is the total amount of money circulating outside the banking system including money on current account over a given period of time

Correct option: A
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Question 55
A
Consumption is a function of the rate of change of income
B
income is a function of the rate of change of investment
C
Investment is a function of the rate of change of income
D
Investment is a function of the rate of interest
Explanation
Investment depends on the rate of change in income and that a change in income will cause a greater proportionate change in investment.

Correct option: C
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Question 56
A
efficient management
B
adequate labour supply
C
small size of the market
D
adequate supply of raw materials
Explanation
A smaller market will discourage mass production. But efficient management, adequate labour supply and adequate supply of raw materials will enhance the existence of mass production.

Correct option: C
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Question 57
A
perfectly elastic
B
perfectly inelastic
C
down-ward sloping
D
upward sloping
Explanation
perfectly inelastic is when a change in price has an no effect on quantity demanded. The coefficient is zero

Correct option: B
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Question 58
A
MUX = MUA
B
MUX = PX
C
PX = X
D
PX = PY
Explanation
A consumer utility is maximized when the marginal utility per amount spent on a product is equal to the price.

Correct option: B
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Question 59
A
rate of inflation
B
input-output ratio
C
buying more machines
D
unemployment rate
Explanation
Efficiency of labour is the output per man per unit of time
the combination of inputs in order to produce a required level of output

Correct option: B
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Question 60
A
Increasing its expenditure on advertising
B
Increasing the workforce
C
Locating in an area in which the industry is already established
D
Merging with another domestic firm engaged in the same industry
Explanation
External economies is the benefit which a firm derives from the centration of similar firms which leads to an increase in output and a reduction in the unit cost
The firm will benefit from the area where the industry is located

Correct option: C

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