Page 238 - Microsoft Word - 00 BA3 IW Prelims STUDENT.docx

Fundamentals of Business Economics

4.5 Which of the following is not an example of supply side economics?

A Privatisation

B Lower state benefits

C Lower direct taxes

D Increased government expenditure

4.6 The aggregate demand curve is negatively sloped because:

A Firms will only produce more at higher prices

B Input prices rise as output increases

C Tax revenue rises at higher prices

D Consumer spending falls at higher price levels owing to the fall in real value
of their savings, and net exports fall as domestic goods' prices rise relative
to foreign prices

4.7 A world recession is likely to lead to:

A A leftward shift in a country's macroeconomic demand schedule

B A rightward shift in a country's short-run aggregate supply curve

C A rightward shift in a country's macroeconomic demand schedule

D A leftward shift in a country's short-run aggregate supply curve

4.8 During the 20th century in the U.K., workers lost their jobs in the coal and
steel industries as supply shifted to countries with lower costs. This is an
example of which type of unemployment?

A Cyclical

B Structural

C Seasonal

D Frictional

232