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For an economy as a whole, income must 11 equal expenditure because every transaction has a buyer and a seller and every dollar of spending by .a buyer is a dollar of income for a seller For example, households sell labour to firms for OMR 10. What does the amount of OMR 10 ?represent in this context 2) (2 ) An income for households An expenditure for firms Both are correct Both are wrong What corresponding return do households 12 ?receive in exchange of land () (2 ) Rent Profit Commission Wages Impossible choices of production possibilities .13 become possible when the choices are............. the frontier and inefficient ones become efficient when the choices are.............. the frontier .RESPECTIVELY 2) (2 ) Beyond, on On or within, within Within, on On or within, on Which of the following is not an aggregate .15 ?indicator of an economy (2 (2 ) Inflation Unemployment rate National income Bank interest rate Which of the following do macroeconomic .16 ?policies influence (2) Aggregate demand Pattern of economic activity Both are correct Both are wrong A fall in the price of a good in production leads .17 to an increase in the demand of its ....goods (2 (2 ) Normal Inferior Substitute Complimentary Most government policies aim either to enlarge 19 the .......................or to change how the pie is Which of the following is ?correspondingly right 2) (2 ) Divided, economic pie Market, undivided Pie, divided Economic pie, divided