ATD ECONOMICS FREE CAT

Question One

Which of the following is not an element of fiscal policy?

Question  Two

…………………………………. taxes are collected by the Revenue authority from a business, which attempts to pass on the tax to consumers in the price of goods.

Which word correctly completes this statement?

Question Three

The currency in country X is the Krone while country Y uses the Euro. Country Y has recently experienced an increase in its exchange rate with Country X. Which of the following effects is likely to result in Country Y?

Question Four

The following, with one exception, are ‘protectionist measures’ in international trade. Which is the exception?

Question Five

Monetary policy is a government economic policy relating to:

1 Interest rates

2 Taxation

3 Public borrowing and spending

4 Exchange rates

Which of the above are correct?

Question Six

Which of the following organisations might benefit from a period of high price inflation?

Question Seven

Which of the following is an example of cyclical unemployment?

Question Eight

A surplus on the balance of payments usually refers to a surplus or deficit on the

…………………………………. account.

Which word correctly complete this statement?

Question Nine
The supply curve of a firm operating in a competitive market is its

Question Ten

Which one of the following would cause the supply curve for a good to shift to the right (outwards from the origin)?

Question Eleven

When the price of a good is held above the equilibrium price, the result will be

Question Twelve

Which one of the following would not lead directly to a shift in the demand curve for overseas holidays?

Question Thirteen

Which of the following is likely to lead to a fall in the price of good Q which is a normal good?

Question Fourteen

According to the theory of the firm, which of the following statements describes an oligopoly?

Question Fifteen

Which of the following is not a substitute for carpets?

Question Sixteen

The demand for fashion goods is not influenced by:

Question Seventeen

Which of the following is not a complement to cars?

Question Eighteen

If the price of coffee falls, which one of the following outcomes would be expected to occur?

Question Nineteen

What is an inferior good?

Question Twenty

ABC produces a variety of soft drink. It has two competitors but all three producers use product differentiation to distinguish themselves from each other. What type of market is this?

Question Twenty One

The income elasticity of demand for a product is high. This means that:

Question Twenty Two

Using the point method, what is the price elasticity of demand of product X as price falls from its current

price of ksh20 to ksh15?

state                  Old                   New

price                  20                     15

Quantity             10                     15