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Grade 11 Economics MCQs

This document contains 10 multiple choice questions related to macroeconomic concepts like aggregate demand, national income, injections, withdrawals, and reflationary policy. The questions cover topics such as how injections and national income are related, what causes equilibrium in an open four sector economy, the impact of changes in government spending and deficits on aggregate demand, and identifying injections in the circular flow of income model. The document provides a quiz on foundational macroeconomic concepts for a grade 11 level course.

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Babu Balaraman
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338 views4 pages

Grade 11 Economics MCQs

This document contains 10 multiple choice questions related to macroeconomic concepts like aggregate demand, national income, injections, withdrawals, and reflationary policy. The questions cover topics such as how injections and national income are related, what causes equilibrium in an open four sector economy, the impact of changes in government spending and deficits on aggregate demand, and identifying injections in the circular flow of income model. The document provides a quiz on foundational macroeconomic concepts for a grade 11 level course.

Uploaded by

Babu Balaraman
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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GRADE -11

MULTIPLE CHOICE QUESTIONS

Question 1

Injections:

a) Decrease aggregate demand


b) Always equal savings
c) Always equal national income

d) Include investment and export spending


Question 2

An increase in national income is:

a) Likely to increase exports


b) Likely to decrease savings
c) Likely to decrease investment

d) Likely to increase spending on imports


Question 3

An increase in national income is likely to:

a) Decrease tax receipts


b) Worsen the trade position
c) Automatically cause an increase in government spending

d) Cause an increase in injections into the economy


Question 4
A significant increase in the government budget deficit is likely to:

a) Reduce injections into the economy


b) Reduce national income
c) Move the economy away from full employment

d) Boost aggregate demand


Question 5

If injections are greater than withdrawals:

a) National income is likely to increase


b) National income is likely todecrease
c) National income will stay in equilibrium

d) Prices will fall

MULTIPLE CHOICE QUESTIONS


Question 6

In the circular flow of income model injections:

a) Are assumed to be exogeneous (independent of national income)


b) Are assumed to be a function of national income
c) Decrease aggregate demand

d) Decrease the investment into an economy


Question 7

For equilibrium in an open four sector economy:

a) Actual injections = actual withdrawals


b) Planned injections = planned withdrawals
c) Savings = investment

d) Government spending = tax revenue


Question 8

A reflationary (expansionist) policy:

a) Increases aggregate supply


b) Increases aggregate demand
c) Decreases the price level

d) Increases full employment


Question 9

A reflationary policy could include:

a) decreasing injections
b) increasing taxation rates
c) increasing interest rates

d) increasing government spending


Question 10

Which of the following is an injection into the economy?

a) Investment
b) Savings
c) Taxation

d) Import spending

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