KASNEB CPA Foundation Level (Kenya) · Economics

National income, money and government

17 practice questions, each with the answer and an explanation.

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Random questions from this topic, one at a time. You see the answer and the explanation straight after each one.

All 17 questions

  1. Gross Domestic Product measures
  2. Which of these is included in GDP?
  3. GDP at market prices is KSh 5,000 billion and net property income from abroad is KSh 200 billion. What is GNP?
  4. If nominal GDP rises by 12% and the general price level rises by 7%, real GDP grew by about
  5. Inflation is best defined as
  6. Which of the following is a cause of cost-push inflation?
  7. The Central Bank of Kenya's role includes
  8. An increase in the central bank's interest rate is expected to
  9. A progressive tax is one in which
  10. Which of the following is an indirect tax?
  11. The multiplier is 4 and investment rises by KSh 20 billion. By how much does national income rise?
  12. If the marginal propensity to consume is 0.8, what is the multiplier?
  13. A country exports goods worth KSh 300 billion and imports goods worth KSh 380 billion. Its balance of trade in goods is
  14. Comparative advantage means a country should specialise in the good for which it has
  15. In one day Kenya can produce either 40 tonnes of tea or 20 tonnes of coffee. What is the opportunity cost of one tonne of coffee?
  16. The unemployment that arises because workers' skills do not match the jobs available is called
  17. Which of the following is a public good?

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