UNIPORT Economics 2018/2019 Past Questions

Practice each question, then open it to see the full details.

A commercial bank is able to create money

A.by printing
B.by maintaining reserves
C.by creating demand deposit as it gives a new loan
D.by issuing cheques to depositors
E.by borrowing from the Central bank

Excess demand inflation can be controlled through

A.contractionary fiscal policy
B.contractionary trade policy
C.expansionary fiscal policy
D.expansionary monetary policy
E.none of the above

As a country gets more developed, the percentage of labour engaged in agriculture tends to

A.remain constant
B.decrease steadily
C.switch over to trading
D.decrease steadily
E.decrease steadily

What happens to a supply curve when the variable(s) that are normally held constant are allowed to change?

A.The curve flattens out
B.There is a movement along the curve
C.The curve shifts
D.The curve becomes steeper

A deficit budget is usually drawn up during

A.economic buoyant
B.inflationary period
C.war time
D.economic recession

In a capitalist society, production and consumption are regulated by the:

A.demand for the commodity
B.the government
C.price system
D.Private individuals

All of the following are assets of a commercial bank except

A.cash
B.bills discounted
C.bank deposits
D.advances to customers

Which of the following statements is true of the effect of changes in demand and supply on price?

A.a decrease in supply will lead to the fall in price and a fall in the quantity bought and sold
B.an increase in demand will lead to a fall in price and in the quantity bought and sold
C.a decrease in demand will lead to a rise in price and in the quantity bought and sold
D.an increase in supply will lead to a fall in price and a rise in the quantity bought and sold

When the average physical product curve is rising, the marginal physical product is

A.below it
B.above it
C.falling
D.zero
E.none of the above

Which of the following is not a measure for controlling inflation?

A.reduction in money supply
B.wage restraint and wage freeze
C.reduction in taxes and increase in government spending
D.price control
E.credit restriction