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Business & Economics-10 Fast Multiple Choice Questions-Part 1

Business and Economics 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 Economics1

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Question 1
Which of the following statements is true about supply-side economics? 
A
the main change made by tha tax laws of 1981 and 1986 was to increase marginal tax rates in order to balance the budget
B
the Laffer Curve says that if marginal tax rates fall, tax revenues will rise, and the budget deficit will decrease
C
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
D
al of the above
Question 2
According to the monetarist acceleration theory, in the long-run,
A
the actual unemployment rate will be below the natural rate of unemployment
B
the actual unemployment rate will be equal to the natural rate of unemployment
C
the actual inflation rate will be equal to the natural inflation rate
D
the budget deficit will be equal to zero
E
the money supply will be growing at constant rate per year
Question 3
If the actual unemployment rate is below the natural rate of unemploy-ment,it would be expected that 
A
the rate of inflation would increase
B
wages would fall
C
the Phillips curve would shift to the left
D
the natural rate of unemployment would fall
Question 4
If individuals forecast future prices by examining the rates of inflation of the present and recent past, they are using 
A
adaptive expectations
B
rational expectations
C
inflationary expectations
D
structural expectations
Question 5
An increase in the money supply causes 
A
interest rate to fall, investment spending to rise, and aggregate demand to rise
B
interest rates to rise, investment spending to rise, and aggregate demand to rise
C
interest rates to rise, investment spending to fall, and aggregate demand to fall
D
interest rates to fall investment spending to fall, and aggreate
Question 6
The demand for money will fall if 
A
real GDP rises
B
real interest rates rise
C
the GDP deflator rises
D
people expect deflation soon
Question 7
Several 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 ? 
A
state and local budget surpluses need to be added to the official bud-get deficit
B
the effects of unemployment need to be taken out of the official budget deficit
C
the effects of inflation need to be taken out of the official budget deficit
D
off-budget spending needs to be added to the official budget deficit
Question 8
The Phillips curve describes the relationship between 
A
the federal budget deficit and the trade deficit
B
savings and investment
C
the unemployment rate and the inflation rate
D
marginal tax rates and tax revenues
Question 9
Which of the following statements is true about the national debt? 
A
in total, it is higher now than it has ever been
B
most of it is owed by the federal government to foreigners
C
it means that a tremendous burden is being passed to our children
D
because of it, the United States is on the verge of bankruptcy
E
all of the above
Question 10
Which of the following would cause business investment spending to rise? 
A
an increase in real interest rates from 5%to 8%
B
a decrease in the corporate profits tax rate from 48%to 34%
C
a reduction of the investment tax credit from 10%to 2%
D
sales falling in relation to capacity from 90% to 60%
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There are 10 questions to complete.