Economics Test 1

Q1. What is Public Expenditure? (3)Ans.___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Q2. What is Revenue and Consumer Expenditure? (3+3)Ans.__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Q3. Effects of taxes on the following:-Taxes on consumer expenditure (2)__________________________________________________________________________________________________________________________________________________________________________

Taxes on investment expenditure (2)__________________________________________________________________________________________________________________________________________________________________________

Low exchange rate on exports (2)__________________________________________________________________________________________________________________________________________________________________________

High exchange rate on imports (2)__________________________________________________________________________________________________________________________________________________________________________

Q4. What is the role of commercial bank? (6)______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Q5.What is Monetary Policy? (6)Ans.___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Q6.What is Fiscal Policy? (3)Ans.___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Q7.What is Expansionary & Contractionary fiscal policies? (3+3)Ans.__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Q8.Explain interest rate and draw the graph? (3)Ans.___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Q9.What are the sources of Public Finance? (4)Ans.________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Q10.What is a good taxation system? (4)Ans.________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Q11.What is the purpose of taxation? (4)Ans.________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Q12.What is Disposable income? (3)Ans.___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Q13.Describe

GDP_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

GNP_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

GIP_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Q14.What are the 3 methods of measuring GDP? (2+2+2)Ans.__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Q15.What is Aggregate Demand? (3)Ans.___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Q16.What is Aggregate Supply? (3)Ans.___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Q17.What is supply side Policy? (4)Ans.________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Q18.What are micro economics objectives? (3)Ans.__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Q19.What are transfer of payment? (3)

Ans.___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Q20.Compare Market & Planned Economic system? (10)Ans.___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Q21.What is the role Central Bank? (4)Ans.________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Q22.What is Perfect Competition? (4)Ans.________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Q23.What are the advantages & disadvantages and characteristics of Monopoly? (10)Ans.___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Total Marks:104