Which ONE of the following would best indicate that economic growth is taking place?

Which ONE of the following would best indicate that economic growth is taking place? An increase in:A . The economy's output gapB . Investment to make good wear and tear of the national capital stockC . Investment in human capitalD . Gross domestic product sustained over a number of yearsView...

January 18, 2021 No Comments READ MORE +

Which of the following would lead to an increase in a firm's share price?

Which of the following would lead to an increase in a firm's share price?A . Management announces that profits are still rising in line with the forecasts in its published 5 year planB . Management announces that profits will be higher than had previously been forecastC . A rise in...

January 18, 2021 No Comments READ MORE +

All of the following will result from increased international mobility of factors of production except which one?

All of the following will result from increased international mobility of factors of production except which one?A . A rise in world income and output.B . Decreased international factor price differentials.C . Increased financial flows on countries balance of payments capital accounts.D . Decreased international specialization in production.View AnswerAnswer: D

January 18, 2021 No Comments READ MORE +

Which ONE of the following would appear as a debit item on a country's balance of payments current account?

Which ONE of the following would appear as a debit item on a country's balance of payments current account?A . Overseas investment by a domestic multinational companyB . Expenditure in the country by an overseas visitorC . A flow of company profits to the parent company based in another countryD...

January 18, 2021 No Comments READ MORE +

Which global institution is concerned with co-coordinating economic policies and agreeing banking and financial regulations?

Which global institution is concerned with co-coordinating economic policies and agreeing banking and financial regulations?A . The IMFB . The World BankC . The World Trade OrganizationD . The G20View AnswerAnswer: D

January 18, 2021 No Comments READ MORE +

The existence of a natural rate of unemployment means that

The existence of a natural rate of unemployment means thatA . the short run Phillips curve is steeper that the long run Phillips curve.B . nominal wages rise faster the prices in the long run.C . governments cannot reduce unemployment below this level.D . there is no trade-off between inflation...

January 18, 2021 No Comments READ MORE +

The business sector will be affected by a contraction in the money supply because

The business sector will be affected by a contraction in the money supply becauseA . Interest rates will tend to fall, thus reducing business costs.B . Inflation will fall and thus demand in the economy will expand.C . Consumer credit will contract thus reducing consumer demand.D . The exchange rate...

January 18, 2021 No Comments READ MORE +

Which ONE is the exception?

All of the following are typical features of the downswing phase of the trade cycle except one. Which ONE is the exception?A . A rise in the level of unemploymentB . A fall in the rate of inflationC . The government budget balance moving towards a deficitD . The balance...

January 18, 2021 No Comments READ MORE +

All of the following are early indicators of a recovery from a recession except which one?

All of the following are early indicators of a recovery from a recession except which one?A . A rise in business confidence.B . An acceleration in the growth of the money supply.C . A fall in the level of net personal debt.D . An increase in the number of unfilled...

January 18, 2021 No Comments READ MORE +

Which ONE of the following increases the price of the shares in ABC plc?

Which ONE of the following increases the price of the shares in ABC plc?A . A fall in interest ratesB . Falling demand for some of ABC's key productsC . Constant ROCE at ABC plcD . News of better economic outlook in ABC's home countryView AnswerAnswer: D

January 18, 2021 No Comments READ MORE +