Economics MCQs

A. Reduce the minimum reserve asset ratio.
B. Buy government securities on the open market
C. Lower interest rates
D. Sell government securities on the open market

A. Sells less government bonds than are required to finance the psbr
B. Sells more government bonds than are required to finance the psbr
C. Sells government securities on the open market
D. Buys government securities on the open market

A. The total tax paid / total income
B. Total income / total tax paid
C. Change in the tax paid / change in income
D. Change in income / change in tax paid

A. A measure of the country’s trade position
B. A measure of the country’s budget position
C. A measure of the country’s total debt
D. A measure of the government’s monetary stance

A. The government’s budget position should automatically improve
B. The government’s budget position should automatically worsen
C. This will have no effect on the government’s budget position
D. This will reduce the government’s tax revenue

A. Taxes paid by firms and households to the government minus the cost of collecting the taxes
B. Taxes paid firms and households to the government minus the transfer payments made to firms and household
C. Taxes paid by firms and households to the government plus transfer payments made to firm and households
D. Government expenditures minus government revenues

A. Increase; increase
B. Decrease; increase
C. Increase; decrease
D. Decrease; decrease

A. Tax bands do not increase with inflation
B. Tax rates move inversely with inflation
C. Government spending falls to reduce aggregate demand
D. Tax banks increase with inflation

A. Rs 50000
B. 20%
C. 25%
D. Rs 10000

A. The government regulation of financial intermediaries
B. The spending and taxing policies used by the government to influence the economy
C. The actions of the central bank in controlling the money supply
D. The government’s attitude to taxation