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1			Models of national economies use a number of descriptors of the different components that make up the units within the economy. Which of the following does NOT constitute a sector of the economy, as recognised by most models?
			A)	consumer sector
			B)	producer sector
			C)	intermediary sector
			D)	government sector
2			Over the past couple of decades, the UK government has been responsible for about -------------% of total expenditure in the economy:
			A)	10%
			B)	30%
			C)	40%
			D)	50%
3			Which of the following does NOT represent a withdrawal from the circular flow of income?
			A)	savings by households
			B)	government taxation
			C)	savings by firms
			D)	investment by firms
4			The multiplier effect is best described as:
			A)	the change in aggregate value of demand in an economy resulting from an initial injection of capital
			B)	the net increase in firms’ costs
			C)	the after-tax increase in households’ income
			D)	the increase in value of exports
5			The accelerator effect refers to:
			A)	the speed of the circular flow of income
			B)	the speed of transactions between households and firms
			C)	a large change in consumer demand which can lead to a small change in demand for capital goods
			D)	a small change in consumer demand which can lead to a large change in demand for capital goods
6			What has been the typical historical annual growth rate for GDP in the UK and most western developed economies?
			A)	0%
			B)	2 - 5%
			C)	5 - 10%
			D)	10 - 15%
7			Gross Domestic Product (GDP) refers to:
			A)	the value of goods and services produced in an economy in a given period
			B)	the value of goods and services produced in an economy plus receipts from overseas
			C)	the value of goods and services produced in an economy plus exports
			D)	the value of goods and services produced in an economy plus imports
8			Which of the following indicators is most likely to be the most effective predictor of UK private consumer demand for new cars in one year’s time?
			A)	index of business confidence index
			B)	of consumer confidence
			C)	index of business profitability
			D)	Gross Domestic Product
9			The level of income which consumers have available to make purchases of luxury goods and services is commonly referred to as their:
			A)	total income
			B)	discretionary income
			C)	after-tax earnings
			D)	average earnings
10			A sudden increase in the cost of wages paid by firms, without any significant increase in firms’ output can lead to a type of price inflation commonly referred to as:
			A)	cost-pull inflation
			B)	cost-push inflation
			C)	demand-push inflation
			D)	demand-pull inflation