Economics MCQs

Page No. 236

The multiplier accelerator model assumes ____ depends on ______?


a consumption expected future profits

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b investment, interest rates

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cinvestment expected future profits

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dstock building interest rates

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All of the following are parts of the business cycle except ?


aboom

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bslump

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crecovery

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dacceleration

✓


View Answer acceleration

The business cycle describes fluctuations in output around the?


a trend path of output

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bboom

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crecession

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d short-run fluctuations in output

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The neoclassical theory of growth identifier the steady state rate of growth as the ____ just sufficient to keep _____ constant while labor grows?


asaving, investment

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bcapital per person, productivity

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c labor growth, output

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d investment capital per person

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GDP per head may be an imperfect measure of economic welfare because it excludes ?


athe value of leisure

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bExternalities

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c Untraded goods

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dAll of the above

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View Answer All of the above

Governments can stimulate productivity by ?


a Imposing higher taxes on capital

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bencouraging more labour intensive work to reduce unemployment

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creducing spending in education

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dencouraging private investment

✓



A combined measure of productivity that takes account of both labor and capital productivity is known as ?


a total exploitation

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blabour/capital productivity

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c total factor productivity

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d total productivity

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The belief that the rate of growth depends upon technological progress facilitated by institutions incentives and government is known as ________ growth theory?


aendogenous

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bexogenous

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cbeta

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dconvergence

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View Answer endogenous

The growth path resulting from technological progress for a given saving rate is known as the ?


a Steady state growth path

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b Steady state invention rate

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cSteady state level of output

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dUnsteady state growth path

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The long run equilibrium level of national income is the level at which ?


a economic growth is Zero

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bAll investment is used in the manufacturing sector

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cEconomic growth is growing

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d All investment is used to maintain the existing capital stock at its current level

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