Economics MCQs

Page No. 236

The multiplier accelerator model assumes ____ depends on ______?


a consumption expected future profits


b investment, interest rates


cinvestment expected future profits


dstock building interest rates



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


aboom


bslump


crecovery


dacceleration


View Answer acceleration

The business cycle describes fluctuations in output around the?


a trend path of output


bboom


crecession


d short-run fluctuations in output



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


asaving, investment


bcapital per person, productivity


c labor growth, output


d investment capital per person



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


athe value of leisure


bExternalities


c Untraded goods


dAll of the above


View Answer All of the above

Governments can stimulate productivity by ?


a Imposing higher taxes on capital


bencouraging more labour intensive work to reduce unemployment


creducing spending in education


dencouraging private investment



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


a total exploitation


blabour/capital productivity


c total factor productivity


d total productivity



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


aendogenous


bexogenous


cbeta


dconvergence


View Answer endogenous

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


a Steady state growth path


b Steady state invention rate


cSteady state level of output


dUnsteady state growth path



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


a economic growth is Zero


bAll investment is used in the manufacturing sector


cEconomic growth is growing


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



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