BusinessÂ and EconomicsÂ are two sides of same coin. Economics is the study of human choice behavior and the methodology used to make associated investment and production decisions. The business can be defined as the labour to fulfill the demand created within society against the consideration in form of currencies or services or things.Given below is the first part of 10 multiple choice question on subject of business an deconomics
Business and Economics1Congratulations - you have completed Business and Economics1.You scored %%SCORE%% out of %%TOTAL%%.Your performance has been rated as %%RATING%%Your answers are highlighted below.
Question 1Which of the following statements is true about supply-side economics?
the main change made by tha tax laws of 1981 and 1986 was to increase marginal tax rates in order to balance the budget the Laffer Curve says that if marginal tax rates fall, tax revenues will rise, and the budget deficit will decrease if the tax laws of 1981 and 1986 had had their intended effect, con-sumption would have risen, causing an increase in both real GDP and in the price level al of the above
Question 2According to the monetarist acceleration theory, in the long-run,
the actual unemployment rate will be below the natural rate of unemployment the actual unemployment rate will be equal to the natural rate of unemployment the actual inflation rate will be equal to the natural inflation rate the budget deficit will be equal to zero the money supply will be growing at constant rate per year
Question 3If the actual unemployment rate is below the natural rate of unemploy-ment,it would be expected that
the rate of inflation would increase wages would fall the Phillips curve would shift to the left the natural rate of unemployment would fall
Question 4If individuals forecast future prices by examining the rates of inflation of the present and recent past, they are using
adaptive expectations rational expectations inflationary expectations structural expectations
Question 5An increase in the money supply causes
interest rate to fall, investment spending to rise, and aggregate demand to rise interest rates to rise, investment spending to rise, and aggregate demand to rise interest rates to rise, investment spending to fall, and aggregate demand to fall interest rates to fall investment spending to fall, and aggreate
Question 6The demand for money will fall if
real GDP rises real interest rates rise the GDP deflator rises people expect deflation soon
Question 7Several adjustments have been suggested to official budget deficit to be able to measure the effects of the budget deficit on the economy For which of the following would the adjusted deficit be larger than the of-ficial budget deficit ?
state and local budget surpluses need to be added to the official bud-get deficit the effects of unemployment need to be taken out of the official budget deficit the effects of inflation need to be taken out of the official budget deficit off-budget spending needs to be added to the official budget deficit
Question 8The Phillips curve describes the relationship between
the federal budget deficit and the trade deficit savings and investment the unemployment rate and the inflation rate marginal tax rates and tax revenues
Question 9Which of the following statements is true about the national debt?
in total, it is higher now than it has ever been most of it is owed by the federal government to foreigners it means that a tremendous burden is being passed to our children because of it, the United States is on the verge of bankruptcy all of the above
Question 10Which of the following would cause business investment spending to rise?
an increase in real interest rates from 5%to 8% a decrease in the corporate profits tax rate from 48%to 34% a reduction of the investment tax credit from 10%to 2% sales falling in relation to capacity from 90% to 60%Once you are finished, click the button below. Any items you have not completed will be marked incorrect.There are 10 questions to complete.