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
taxation: types of taxes: direct/indirect, progressive/regressive/proportional, rates of tax: marginal and average rates of taxation (mrt, art), reasons for taxation
the multiplier process: definition of the multiplier, formulae for and calculation of multiplier in a closed and open economy, with and without a government sector, calculation of: average and marginal propensities to save (aps and mps), average and marginal propensities to consume (apc and mpc), average and marginal propensities to import (apm and mpm), average and marginal rates of tax (art and mrt), national income determination using AD and income approach with the multiplier process, calculation of effect of changing AD on national income using the multiplier
policies to redistribute income and wealth: minimum wage, transfer payments, progressive income taxes, inheritance and capital taxes, state provision of essential goods and services
