Economics Page-3

21) What will happen if there is a fall in the death rate while the birth rate and migration remain unchanged?
(A) Population structure will remain the same
(B) Population will increase
(C) The standard of living will increase
(D) There will be change in the proportion of men to women

22) Which measures taken by a government would be intended to raise the price of imports?
(A) embargoes
(B) foreign exchange controls
(C) quotas
(D) tariffs

23) Which function is performed by both commercial banks and central banks?
(A) acting as bankers to the government
(B) advising the government on monetary policy
(C) dealing in foreign exchange
(D) fixing the main interest rate

24) A claim for higher wages would not be helped by an increase in:
(A) consumers' demand
(B) labor productivity
(C) profit
(D) unemployment

25) Which situation will a country face, if the birth rate falls sharply, while the death rate remains unchanged?
(A) a fall in living standards
(B) a more youthful population
(C) an aging population
(D) an increase in population

26) What is likely to be higher in a developing country, such as Zimbabwe, than in a developed country, such as Switzerland?
(A) birth rate
(B) GDP per head
(C) life expectancy
(D) net investment per head

27) Which condition, found in a developing country, might contribute to its debt problem?
(A) It has a high level of savings
(B) It has a highly developed infrastructure
(C) It has exports which are low in value
(D) It has high levels of capital investment

28) Which of the following would not be a reason for imposing tariffs on imported goods?
(A) to encourage self-sufficiency
(B) to protect a growing domestic industry
(C) to raise government revenue
(D) to raise the general price level within the economy

29) To decrease pollution in the environment, the government required all firms in an industry to install new capital equipment which reduces the amount of smoke released into the air.
(A) external
(B) fixed costs
(C) marginal costs
(D) variable costs

30) What would reduce the role of central planning in an economy?
(A) increasing government spending
(B) increasing public ownership of firms
(C) increasing the role of markets
(D) removing the profit motive

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