A country achieves economic development when there is
An increase in military expenditure
An increase in capacity utilization
A sustained increase in per capital income
An even distribution of goods and services
Correct answer is C
Per capita income is a measure of the amount of money earned per person in a nation or geographic region. Per capita income helps determine the average per person income to evaluate the standard of living and economic development for a population.
During the era of barter, money was generally in the form of
Notes
Precious metals
Coins
Commodities
Correct answer is D
Commodity money is a physical good that consumers universally use to trade for other goods.. It was use as money during the barter system. They include commodities such as gold, silver, copper, salt, peppercorns, tea, decorated belts, shells, alcohol etc.
If aggregate demand is lower than total output in an economy national income will
Be constant
Be at equilibrium
Increase
Fall
Correct answer is C
Recall that a downward sloping aggregate demand curve means that as the price level drops, the quantity of output demanded increases. Similarly, as the price level drops, the national income increases.
when demand is lower than total output it means price will be low. That is to say, they are more goods in the market than people who are willing to buy them. When price drops, national income (real income) increases. Because prices are low, money can buy more goods as against when prices are high.
In national income accounts, an item counted as part of government spending is
Salaries and wages
Pension
Scholarship
Social welfare
Correct answer is D
Social welfare refers to a wide range of activities and services by volunteers, non-profit organizations and governmental agencies providing help to needy persons unable to care for themselves. It is part of government expenditure when accounting for national income accounts.
An increase in the circulation of money without a corresponding increase in output will lead to
A rise in income levels
Stagflation
Inflation
Deflation
Correct answer is C
Increasing the money supply without a corresponding increase in real output will cause inflation. The reason is that there is more money chasing the same number of goods. Therefore, the increase in monetary supply with few goods available causes firms to put up high prices. Plenty money would be chasing few goods.