41) What is the most likely result of an increase in interest rates?
(A) a rise in imports
(B) a rise in borrowing
(C) a fall in new consumer spending
(D) a fall in saving
42) What does the phrase 'terms of trade' describe?
(A) a measure of trade restrictions with other countries
(B) the level of foreign exchange reserves
(C) the relationship between the price of imports and the price of exports
(D) the value of one currency in terms of another currency
43) Which of the following is an example of the factor of production known as capital?
(A) a truck
(B) a truck driver
(C) a truck driver's savings
(D) a truck driver's wage
44) What will increase the level of specialization in an economy?
(A) A computer manufacturer takes over a mobile phone company
(B) A retail store issues its own credit card
(C) A travel agent provides transport to the airport
(D) A vehicle assembler reduces its range of vehicles
45) Which of the following are usually found in a developing economy?
(A) a low GDP per head together with a high calorie intake
(B) a low life expectancy together with a high rate of adult literacy
(C) a low rate of infant mortality together with a high death rate
(D) a low school-leaving age together with a low rate of employment
46) When stock market is falling it is called __________:
(A) Bearish
(B) Bullish
(C) Crash
(D) Fall down
47) What is most likely to cause the government to have a budget surplus?
(A) an increase in exports
(B) an increase in unemployment
(C) a decrease in government spending
(D) a decrease in private sector investment
48) Which of the following would an economist use to measure living standards?
(A) the average size of families
(B) the gross domestic product per head
(C) the number of workers in agriculture
(D) the size of cities
49) A country is experiencing inflation what must be increasing?
(A) wage levels
(B) the output of goods and services
(C) the amount of money spent on goods and services
(D) the amount of money needed to purchase a given quantity of goods and services
50) More than 2/3 of the world's tin comes from:
(A) China
(B) Bolivia
(C) Malaysia
(D) Nigeria