Q. Which of the following is a tool of monetary policy? (2023)
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A.
Taxation
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B.
Government spending
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C.
Interest rates
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D.
Subsidies
Solution
Interest rates are a primary tool of monetary policy used to control inflation and stabilize the economy.
Correct Answer: C — Interest rates
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Q. Which of the following is considered a factor of production? (2022)
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A.
Money
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B.
Land
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C.
Government
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D.
Trade
Solution
Land is considered a factor of production, along with labor and capital, as it is a resource used to produce goods and services.
Correct Answer: B — Land
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Q. Which of the following is NOT a component of GDP? (2023)
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A.
Consumption
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B.
Investment
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C.
Exports
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D.
Taxation
Solution
Taxation is not a direct component of GDP; it is a means of revenue for the government.
Correct Answer: D — Taxation
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Q. Which of the following is NOT a method to calculate GDP? (2020)
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A.
Production approach
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B.
Income approach
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C.
Expenditure approach
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D.
Consumption approach
Solution
The consumption approach is not a recognized method to calculate GDP; the three main methods are production, income, and expenditure approaches.
Correct Answer: D — Consumption approach
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