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Fundamentals of Business Economics Question Tutorial

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FAQ’s

It is necessary to include a balancing item in the balance of payments accounts in order to

Balance the current and capital accounts

All of the following are elements of a supply side policy except which one?

Reductions in the marginal rates of taxation.

In a fully employed economy, which one of the following would lead to demand pull inflation?

A reduction in the rate of income tax

Which of the following best defines a fiscal policy?

A policy that increases government spending to increase national income

Which of the following would not be a reason for a government to impose a quota on imports?

To plan the orderly decline of industries that have lost comparative advantage

Which ONE of the following is regarded as a general characteristic of an organization?