CIPS A6 Quiz 1 Topic 1 Questions 1-5

Question: 1

Which of the following best describes the economic term 'budget deficit'? (2 marks)

AGovernment revenues exceeding government expenditure

BGovernment expenditure equaling government revenue

CGovernment revenues creating government expenditure

DGovernment expenditure exceeding government revenue

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Question: 2

Which of the following best describes the term 'business cycle'?

AThe time that elapses between a buyer placing an order and the seller delivering the goods

BThe continuum of economic activity from extraction of raw materials to the sale of finished goods

CThe time that elapses between a user department recognizing the need for an item and purchasing placing the order

DThe need for all businesses in a free market economy to make a profit which allows the company to expand and grow.

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Question: 3

Which of the following best defines the term 'monetary policy'? (2 marks)

AThe control of taxation

BThe control over the amount of money in circulation and the cost of borrowing

CThe control of numbers of people unemployed compared to those employed

DThe control of wealth distribution

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Question: 4

Which of the following best describes the term 'structural unemployment'?

AUnemployment created as demand for workers varies at different times of the year

BUnemployment created by a significant change in the nature of industries

CUnemployment created as workers leave one job and move to another

DUnemployment created as a result of business failures in the market place.

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Question: 5

The acronym P.E.S.T. used in analyzing the environment stands for which of the following?

APolitical-Environmental-Social-Technical

BPopulation-Education-Sport-Taxation

CPolicy-Expansion-Security-Training

Dpolitical-Economic-Social-Technological.

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CIPS A6 Quiz:1 Topic:1 Questions:1-5