Acca paper F1 fia diploma in Accounting and Business Accountant in Business (AB/fab) exam kit

marks) 
96 
The balance of payment surplus will result in: 
A 
lower rate of economic growth 
B inflation 
C unemployment 
D budget 
deficit 
(2 marks)
97 
The disadvantages of economic growth include which one of the following: 
A 
growth rates may exceed inflation rates 
B 
the gap between rich and poor may narrow 
C 
growth may exceed population growth 
D 
growth may be in ‘demerit’ goods
 (2 
marks) 
98 
Demand side policies are best described as: 
A 
a belief that government should manipulate its spending so as to manage aggregate 
demand
B 
ensuring that demand is contained so that inflation is controlled 
C 
managing down excessive growth by reducing government borrowing 
D 
keeping employment levels substantially below full levels 
(2 marks)
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PRA CTICE OBJE CTIVE TEST QUESTIONS : 
SECTION 1 
K APLA N PUBLISH ING 
23 
99 
Country K is suffering from a recession. A government minister has recently suggested that 
the country’s government should ‘focus more on reducing the power of trade unions and 
the number of state-owned monopolies and less on worrying about running a budget 
surplus.’ 
Which economics theory is the government minister suggesting that country K should 
adopt? 
A Classical 
B Monetarist 
C Keynesian 
D Demand 
side
 (2 
marks) 
100 Country C is experiencing a rising trade deficit. In addition, the costs of these imports are 
rising due to production problems in the countries that export to C. If all else stays