Objective Tests

This test contains ten multiple choice questions on the subject of economics. Attempt every question. No marks will be deducted for wrong answers. Make sure that you have included both your name and email address before pressing the 'submit' button. You must include your email address because you will be notified of your result by email. The occupation and education field are not compulsory, but I would be most grateful if you would include this information as it makes entries in the Hall of Fame much more interesting to read.
Inflation could co-exist with all of the following except
a more unequal distribution of income
falling unemployment
rising real wages
an internal appreciation in the value of money
Which one of the following would cause aggregate demand to fall?
A decrease in personal taxation
A fall in imports
A fall in the rate of interest
A decrease in government expenditure
The supply-side argument for a cut in government expenditure assumes that this will
reduce private choice
crowd out private investment
increase the PSBR
allow a greater role for the market mechanism
Under any progressive system of taxation
all taxpayers pay the same proportion of their income in tax
all taxpayers pay the same absolute amount in tax
there is a wider range in pre-tax than in post-tax incomes
there is a wider range in post-tax than in pre-tax incomes
According to Keynesian economists, for which one of the following types of unemployment might an increased budget deficit be the most appropriate remedy?
Frictional
Structural
Technological
Cyclical
The supply of a product may be more price elastic in the long run than in the short run because in the long run
diminishing returns may occur
producers may benefit from economies of scale
capital equipment may become obsolete
marginal productivity may fall
'Supply-side' policies are generally understood to be policies which
help to create economic incentives and reduce market imperfections
enable the Government to supply as many goods and services as possible
reduce the supply of labour in order to minimise the problem of unemployment
reduce inflation by restricting the money supply
Fixed exchange rates may be preferred to floating exchange rates because with fixed exchange rates
there is less need to hold large reserves of forgeign currency
a balance of payments defecit is less likely to force a government to adopt measures to reduce aggregate demand
there is greater stability which encourages trade and investment
interest rates will not have to be raised to protect the exchange rate
According to a supply-side economist, which one of the following would be likely to reduce the 'natural' rate of unemployment?
Increased government spending on unemployment pay
The introduction of a national minimum wage
The abolition of rent controls
Legislation to increase employment protection
Each of the following provides an example of deregulation except
the flotation of British Gas shares on the open market
allowing building societies to compete more freely with the banks
the removal of the British Telecom monopoly of telephone handsets
the abolition of exchange controls
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Objective Tests

Objective Test #1

Objective Test #2

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