Question 26
Question 26 of 30
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Older MCQs might not have the typical A, B, C, D choices. They have choices 1, 2, 3, and a combination of them is the answer. Below is the key that maps such combinations to the answer.
A 1, 2 and 3 are correct
B 1 and 2 only are correct
C 2 and 3 only are correct
D 1 only is correct
Topics Tested
3. Government microeconom...
3.1. Reasons for government interve...

addressing the over-consumption of demerit goods and the under-consumption of merit goods

9. The macroeconomy (A Le...
9.1. The circular flow of income

components of Aggregate Demand (AD) and their determinants: consumption function: autonomous and induced consumer expenditure, savings function: autonomous and induced savings, autonomous and induced investment; the accelerator, government spending, net exports (exports minus imports)

6. International economic...
6.3. Current account of the balance...

consequences of imbalances in the current account of the balance of payments for the domestic and external economy