QUESTION 1 Choose the most correct answer from the following multiple choice que

Question

QUESTION 1 Choose the most correct answer from the following multiple choice questions next to the question number.Eg 1.20. A 1.1 Economics concerns itself with: A systematic understanding of patterns of production, consumption and distributio services i. . A study of money, banking, capital formation and wealth. ili. A study of how limited resources are used to satisfy unlimited human wants iv. The study of the application of scarce means to a multitude of human wants. Which of the above statements can be associated with the broad subject matter studied a) None of them. b) All of them. c) Only statements i, ii and ii. d) Only statements i, lii and iv. 1.2 The basic economic problems faced by a socialist economy are: a) Different from those faced by a mixed economy. b) Different from those faced by a market economy, but the same as those faced c) Similar to those faced by both a market and a mixed economy. d) Different from those faced by a market economy. 1.3 GDP pat_prices will usually be greater than GDP atprices beo a) constant; current; inflation b) current; constant; inflation c) constant; current; depreciation d) current; constant; depreciation 1.4 Which one of the following is the essential function of money? a) Medium of exchange (or means of payment). b) Store of value. c) Factor of production. d) Source of income. 1.5 When the inflation rate is expected to exceed the target rate by a si Reserve Bank (SARB) will tend to: a) Reduce the cost of credit to the banks. b) Increase the repurchase rate (repo rate). c) Purchase government bonds on the open market d) Decrease the repurchase rate (repo rate).

Explanation / Answer

Answer 1 :- (b) All of them

Answer 2 :- (c) Similiar to those faced by both a market and mixed economy

Answer 3:- (b) Current ; constant ; inflation

Answer 4 :- (a) Medium of exchange

Answer 5 :- (b) Increase the repurchase rate (repo rate)

As per chegg policy first four question is to be answer in case of many questions

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