FREE Bachelor of Social Science Economics Questions and Answers

Question 1

To impress a business associate, John wants to compute the Gross Domestic Product (GDP). Which item would this calculation's relevance be?

Accepted Answer

Both wages and new purchases

Answer

Gross Domestic Product (GDP) measures the total monetary value of all finished goods and services produced within a country's borders in a specific time period. This calculation can be approached from either the income side (wages, profits, rent, interest) or the expenditure side (consumption, investment, government purchases, net exports). Therefore, both wages (income) and new purchases (expenditure) are relevant components.

Question 2

Which one of the following IS an injection?

Accepted Answer

All answers could be considered an injection

Answer

In the circular flow model of an economy, injections are additions to the flow of income. These typically include investment (spending by businesses on capital goods), government purchases (spending by the government on goods and services), and exports (spending by foreign entities on domestic goods and services). All three options represent money flowing into the domestic economy.

Question 3

The following would be taken into account while describing the vehicle assembly line equipment:

Accepted Answer

the physical capital.

Answer

Physical capital refers to the man-made resources used in the production of goods and services. This includes machinery, equipment, tools, buildings, and infrastructure. Vehicle assembly line equipment perfectly fits this description as it is a tangible asset used to produce other goods.

Question 4

What constitutes a research and development example?

Accepted Answer

A new software application that increases workplace productivity

Answer

Research and development (R&D) involves activities undertaken by companies or governments to innovate and introduce new products, services, or processes. A new software application that increases workplace productivity is a prime example, as it represents the creation of a novel solution designed to improve efficiency and output, often resulting from significant investment in research and development.

Question 5

The business cycle's peak and trough phases represent the ups and downs of the economy. What is the other set of often used descriptors for this cycle?

Accepted Answer

Expansion and recession

Answer

The business cycle describes the fluctuations in economic activity over time. The two main phases that represent the ups and downs are expansion, which is a period of economic growth, and recession, which is a period of economic contraction. These terms are standard descriptors for the cyclical nature of economies.

BSocSc Bachelor of Social Science Practice Test

BSocSc Bachelor of Social Science Practice Test

FREE Bachelor of Social Science Economics Questions and Answers