Economics Practice Quiz 118

Q1.How is the unemployment rate defined in the source text?

A. Number of people not working divided by total population B. Number of people not working and looking for jobs divided by total number of people working or looking for jobs C. Number of people unemployed divided by total labour force D. Number of people receiving unemployment benefits divided by total workers

Q2.What approach did Keynes take in his book 'The General Theory of Employment, Interest and Money'?

A. To examine individual markets separately B. To examine the working of the economy in its entirety and the interdependence of different sectors C. To focus solely on monetary policy D. To analyze long-term economic growth

Q3.In a capitalist economy, who are the people who exercise control over major decisions and bear a large part of the risk associated with the enterprise?

A. Labourers B. Entrepreneurs C. Landlords D. Government officials

Q4.What are the three factors of production?

A. Capital, land, and labour B. Capital, machinery, and raw materials C. Land, labour, and technology D. Entrepreneurship, capital, and labour

Q5.What is the payment made to labour for its services called?

A. Rent B. Interest C. Wages D. Profit

Q6.What is the earning of the entrepreneurs called after paying rent, interest, and wages?

A. Revenue B. Profit C. Investment D. Capital

Q7.What term is used for expenses that raise productive capacity, such as buying new machinery or building new factories?

A. Consumption expenditure B. Investment expenditure C. Revenue expenditure D. Capital expenditure

Q8.Which of the following is NOT a characteristic of a capitalist economy?

A. Private ownership of means of production B. Production for selling output in the market C. Sale and purchase of labour services at a wage rate D. Government control over major industries

Q9.What is the price at which labour services are bought and sold in a capitalist economy called?

A. Rent B. Interest C. Wage rate D. Profit

Q10.Who may supply the capital needed to run the enterprise?

A. Only the government B. Only banks C. The entrepreneurs themselves or they may borrow D. Foreign investors

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Economics Practice Quiz 118