Economics MCQs

Page No. 143

The classical view of the labor market is basically consistent with the assumption of _________ aggregate supply curve?


aa vertical (or almost vertical)


ba downward sloping


ca horizontal (or almost horizontal)


d an upward sloping



Possible causes of involuntary unemployment are ?


a minimum wage agreements


btrade


c scale economies


d all of the above


View Answer all of the above

If the income tax rate changes from 30% to 40% on income over Rs30,000 and a person’s income is Rs 31,000 then her marginal tax rate is ?


a30%


b10%


c 70%


d40%


View Answer 40%

If somebody is prepared to work at the going wage rate but cannot find work then they are victims of ?


a voluntary unemployment


bclassical unemployment


cvoluntary unemployment


dFrictional unemployment



We would normally expect the size of the labor force to be _____ than the number or workers willing to accepts job offers at any real wage rate ?


aSmaller


bLarger


cthe same size


dNone of these


View Answer Larger

An advocate of the classical model of the economy would claim that unemployment is created when the ____ is above its equilibrium level in the ______?


a price level, aggregate economy


b tax rate, government budget


cwage rate, labor market


dinterest rate, market for loanable funds



The costs of inflation are ?


a shoe leather costs


bmenu costs


cuncertainly


dall of the above


View Answer all of the above

The long-run Phillips curve is ____ at the ____?


ahorizontal, natural rate of inflation


bhorizontal natural rate of unemployment


cvertical natural rate of inflation


dvertical equilibrium rate of unemployment



Governments may contribute to inflationary pressure because of building up large ?


anumbers of employees


bwelfare plans


cbudget deficits


dexpenditures


View Answer budget deficits

In the events of an increase in the international price of oil that encouraged the central bank to accept lower real interest rates, inflation would most likely ?


afall


bincrease


cremain the same


dfluctuates


View Answer increase

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