Name of Student: __________________________________

Grade & Subject : X Economics

Date: 10.08.2022

Multiple Choice Questions: (1 mark each)

1. Which of the following is most likely to conflict with the government aim of high
economic growth?
A. Employment opportunities
B. Balance of payments deficit
C. Inflationary pressures
D. Higher tax revenues

2. Which of the following is least likely to be a government aim?

A. Full employment
B. Balance of payments stability
C. Price stability
D. Provision of welfare services

3. Government policies designed to improve the quantity and quality (productivity) of

resources in the economy by removing barriers to economic growth are known as
A. monetary policy
B. fiscal policy
C. demand side policies
D. supply-side policies

4. Which of the following do not come under the local government?

A. Running local library
B. Public education
C. Street lighting
D. Local road maintenance

5. Choose the demand side policy out of the following

A. Removing trade barriers
B. Changes in the rate of interest
C. Giving a grant to a business/ firm
D. Improving education and training

1
 6. When the government spends on salaries and wages of their employees, it is called
________________
A. Current expenditure
B. Capital expenditure
C. Consumption expenditure
D. Investment expenditure

7. The provision of public transport tickets at subsided prices for students is a part of
which role of the government?
A. Regulator
B. Collector
C. Provider
D. Producer

8. Balance of payment can be defined as:

A. A record of the flows of money in and out of a country
B. A record of the government’s income and expenditure
C. A record of all the goods sold in a black market
D. A record of all the payments made by the taxpayers of a country.

Definition: (2marks)
1. GDP