ECAA (Economics Admissions Assessment) Country Practice Questions

A country is experiencing a high inflation rate. What is the likely effect on consumer purchasing behavior?

• AA. They will buy less goods
• BB. They will save more money
• CC. They will buy more goods
• DD. They will invest in stocks

What might happen to the labor market if a new industry emerges in a developing country?

• AA. Unemployment may rise in other sectors
• BB. Wages in that sector may drop
• CC. Demand for skilled labor may decrease
• DD. Demand for unskilled labor may increase

A country introduces tariffs on imported goods. What is a likely effect on domestic producers?

• AA. Reduced market share
• BB. Decreased production costs
• CC. Increased protection
• DD. Increased competition