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Questions and Answers
How does the government change income distribution?
How does the government change income distribution?
What is the most important capital receipt?
What is the most important capital receipt?
What is the main objective of fiscal policy?
What is the main objective of fiscal policy?
What is the government expenditure multiplier?
What is the government expenditure multiplier?
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What is the value of the tax multiplier?
What is the value of the tax multiplier?
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Which of the following will impose a burden on the next generation?
Which of the following will impose a burden on the next generation?
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What impact does a reduction in the exchange rate have?
What impact does a reduction in the exchange rate have?
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What is the equilibrium condition for an open economy?
What is the equilibrium condition for an open economy?
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Study Notes
Economics Exam 2024 - Study Notes
- Exam Duration: 3 hours 15 minutes
- Total Marks: 100
- Question Type: Objective (multiple choice) questions; 50 questions to answer from 1-100, 1 per question.
- Instructions: Select the correct option & fill OMR sheet.
Section A - Objective Questions
- Question 1-10: Multiple choice questions on topics related to Government Policies and Income Distribution.
- Government policy to change income distribution: Taxing the rich, raising spending for poor etc.
- Capital receipts: Major revenue source for governments. (e.g., market loans, sales of company shares)
- Fiscal policy objectives: Increase output, minimize unemployment, stabilize prices, (e.g., government stimulus packages)
- Government spending multiplier: A key concept in fiscal policy, influences economic activity.
- Income in GDP: Increase in Real GDP
- Satisfice Budget Multiplier: A concept relating to Budget, important for financial understanding.
- Tax Burden: Tax imposed on goods or services consumed
- Inflation: A general increase in the prices of goods and services in an economy over a period of time.
- Exchange rate: The rate at which one currency can be exchanged for another.
Section B - Other Questions
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Question 11-13: Focus on indices like consumer price index; questions for comparison between years (2020-2023).
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Consumer Price Index (CPI): A measure of the average change over time in the prices paid by urban consumers for a basket of consumer goods and services.
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Base Year: A reference year used for comparing prices in different periods. Usually used as a benchmark for the CPI.
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Current Year: The year for which the CPI is being calculated. CPI for 2023 using 2010 as base year.
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Gross Domestic Product (GDP): Total value of all goods and services produced in an economy in a year, important for comparing economic performance.
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Gross National Product (GNP): The total value of goods and services produced by citizens of an economy in one year. Usually measures wider than GDP.
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Relationship between GNP and GDP: If GNP is larger than GDP, the country receives more income from abroad than what it pays out to others.
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Identifying Economic Growth: Significant increase in Real GDP (calculated using constant prices) over a period.
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Description
Prepare for your Economics Exam in 2024 with these study notes. This quiz covers essential topics including government policies, income distribution, fiscal policy objectives, and concepts such as the government spending multiplier. Test your understanding and ensure you're ready for the objective questions in your exam.
