Consumption spending does not include ? A. Household’s purchases of food B. Households’ purchase of a car C. Household’s payment of rent for an apartmentD. Household’s purchase of stock in any XYZ corporation

Net investment is___________________? A. Gross investment minus household investment B. Gross investment minus govt. InvestmentC. Gross investment minus capital consumption allowance D. None of the above

GNP is_______________? A. Total sales in the economy B. Total monetary transactions in an economyC. The market value of all goods and services produced in an economy D. Total spending in an economy

We measure national income by this method ? A. Expenditure method B. Income method C. Product methodD. All of the above

What is the meaning of the term stagflation ? A. Fall in prices due to less circulation of currency B. Fall in employment due to declining productionC. High inflation rate combined with high unemployment and unchanged consume demand D. None…

What does price elasticity of demand measure ? A. Changes in price caused by changes in demand B. The rate of change of salesC. The responsiveness of demand to price changes D. The value of sales at a given price

What would reduce the role of central planning in a economy ? A. Increasing government spending B. Increasing public ownership of firmsC. Increasing the role of markets D. Removing the profit motive

Transfer payments means ? A. Bank loansB. The payment without work C. Tax payments D. Payments made to all factors of production

The standard of living in a country is represented by its ? A. National incomeB. Per capita income C. Poverty ratio D. None of these

A tax which is paid by the person on whom the tax is incident is called a ? A. Local tax B. Indirect taxC. Direct tax D. Rate