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CA Foundation Economics: related Business Economics practice — page 4

The practice bank below covers broader Business Economics topics; a dedicated Economics lesson is not available yet.

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Business Economics questions and exercises with answers

Showing questions 91–120 of 245.

An inverted yield curve is often a harbinger of:Read the answer and worked solution →Since the 1940s, governments' efforts to mitigate the cycle fall under:Read the answer and worked solution →In the Keynesian view, recessions are caused by inadequate:Read the answer and worked solution →Which action is expansionary fiscal policy during a recession?Read the answer and worked solution →Increasing the money supply to fight a recession is called:Read the answer and worked solution →Robert Lucas argued that the welfare cost of business cycles is:Read the answer and worked solution →Friedman said the Fed turned a recession into the Great Depression by:Read the answer and worked solution →The 1970s stagflation discredited the use of the:Read the answer and worked solution →The stability and growth of the 1980s and 1990s came to be called the:Read the answer and worked solution →Which years mark the Great Depression in the economic history of the West?Read the answer and worked solution →A one-off change such as a worker strike over a year or two is usually regarded as:Read the answer and worked solution →Compared with long-term trends, business cycles are usually seen as a:Read the answer and worked solution →A recession is best described as a business cycle:Read the answer and worked solution →The UK and Canada define a recession as GDP falling for:Read the answer and worked solution →A recession with GDP down by 10 percent, or lasting three or four years, is called:Read the answer and worked solution →A short, sharp contraction followed by rapid recovery is called which shaped recession?Read the answer and worked solution →Double-dip recessions are described as which shape?Read the answer and worked solution →What term describes private markets failing to allocate goods or services efficiently?Read the answer and worked solution →Inefficiencies in public provision by a government are termed what?Read the answer and worked solution →Which of these can cause market failure?Read the answer and worked solution →Public sector programmes should be designed to maximise what?Read the answer and worked solution →What is a government deficit?Read the answer and worked solution →The accumulation of deficits over time gives which total?Read the answer and worked solution →Government borrowing mainly spreads tax burdens across what?Read the answer and worked solution →Which is an essential component of public financial management?Read the answer and worked solution →Government purchases of goods and services for current use are classed as what?Read the answer and worked solution →Social security payments, which buy no goods or services, are classed as what?Read the answer and worked solution →Which is a primary way of financing government expenditure?Read the answer and worked solution →Which concept studies who finally bears a tax's burden after markets adjust?Read the answer and worked solution →What is the main objective of taxation?Read the answer and worked solution →

Worked practice questions

An inverted yield curve is often a harbinger of:

  1. Recession
  2. Rapid inflation
  3. Currency boom
  4. Higher wages
Show answer and solution

Correct answer: A. Recession

Short-term rates exceeding long-term rates have preceded recessions, and the pattern is used as a predictor.

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Since the 1940s, governments' efforts to mitigate the cycle fall under:

  1. Price control policy
  2. Stabilization policy
  3. Foreign trade policy
  4. Industrial licensing
Show answer and solution

Correct answer: B. Stabilization policy

After the Keynesian revolution, smoothing the cycle became part of government responsibility, called stabilization policy.

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In the Keynesian view, recessions are caused by inadequate:

  1. Aggregate demand
  2. Labour supply
  3. Foreign reserves
  4. Natural resources
Show answer and solution

Correct answer: A. Aggregate demand

Keynesians hold that weak aggregate demand causes recessions, so government should raise demand.

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How to practise

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More Business Economics topics

Price-Output Determination under Different Market FormsPublic FinanceSupplyLaw of DemandInternational TradeBasic Problems of an Economy and Role of Price MechanismProduction And CostBusiness Cycles