Economics 5 MCQ C22.doc - MULTIPLE CHOICE QUESTIONS TESTBANK \u2013 CHAPTER 22 Go to memorandum Answer the following questions by selecting the appropriate

Economics 5 MCQ C22.doc - MULTIPLE CHOICE QUESTIONS...

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MULTIPLECHOICEQUESTIONSTESTBANKCHAPTER22Go to memorandumAnswer the following questions by selecting the appropriate answer from the list below.Question 1 Which one of the following would not necessarily enhance economic growth in South Africa?A.Technological improvements.B.Increased labour productivity through on-the-job training.C.Higher levels of net investment in the economy.D.Higher levels of government spending that raise local interest rates.E.All of the above.Question 2 Investment in human capital:Question 3 During a recession, cyclical unemployment will ________ and cyclical inflation will ________.© VAN SCHAIK PUBLISHERS
Question 4 The phase of the business cycle at which almost all available resources in the economy are in use isreferred to as: Question 5 Keynesians believe that the fluctuations in economic activity (business cycles):A.are caused by external factors such as the inappropriate use of government policy.B.are caused by changes in weather patterns.C.are caused by structural or institutional changes.D.occur naturally in market economies and require government intervention.Question 6 Capital widening refers to: Question 7 Import substitution involves:© VAN SCHAIK PUBLISHERS
D.the substitution of local labour with imported capital so as to reduce the costs of productionand ensure the competitiveness of strategic industries.Question 8 According to Keynesian economists, during a boom in economic activity: Question 9 Which one of the following statements is incorrect?

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