Economics MCQs

Page No. 238

Potential output can be increased by ____ or by ______?


aincreasing the use of labor increasing the use of land


b increasing the use of capital increasing the use of labour


c increasing the use of all inputs, technical advances


dincreasing the use of all inputs, technical advances



Supply side policies are considered effective in ?


a Increasing government expenditure


b reducing taxation


c increasing the money supply


dencouraging technological progress



Identify below what does NOT affect productivity ?


a Public investment in education


bInnovation and the application of new technology


cThe phase of the lunar cycle


d Private investment in new physical caital



Policies to encourage productivity do not include ?


a building more retail outlets


bencouraging risk-taking


cencouraging innovation


dencouraging R & D



The percentage of the working age population that is part of the workforce is known as the ?


aworkers


bnon-slackers


cdiligent rate


d participation rate


View Answer participation rate

The golden-rule saving rate is the rate of saving that ?


agets the highest rate of interest


bmaximizes the level of long-run investment


cmaximizes the level of long-run consumption


dmaximizes human capital



Identify below what is NOT considered to be a cause of economic growth ?


a An increase in the quantity of labor and capital


b An increase in labor productivity


cAn increase in the money supply


dAn increase in technology



Economic growth is important because ?


aPeople want less crime


bPeople want to be happier


cPeople want a better environment


d People want higher incomes and more consumer goods.



All of the following are benefits of the single market except ?


a it allows countries to exploit their comparative advantage, more fully


b firm could more readily exploit


c economies of scal


dit is easier to book holidays in member countries



In the ERM, each country fixed participant Collectively the group ________ against the rest of the world?


aa nominal exchange rate, floated


ba real exchange rate, pegged


ca purchasing power parity, pegged


d a real exchange rate, floated



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