Economics MCQs

Page No. 241

As prices rise. People will want to keep more money as cash and in bank accounts This is called ?


areal balance effect.


bcash ratio.


cmoney illusion.


d menu costs of inflation.


View Answer real balance effect.

The demand for ice-cream is lower outside of summer causing lower demand for ice-cream salesman if they cannot find other work, this is called _______ unemployment?


aRegional


bstructural


cseasonal


d demand-deficient


View Answer seasonal

Unemployment resulting from imperfect information in the labour market is called ____ unemployment?


aFrictional


bnatural


creal-wage


d disequilibrium


View Answer Frictional

Aggregate supply is the total amount ?


a of products produced by a given industry.


bproduced by the government


cof labour supplied by all households


dof goods and services produced in an economy.



Cyclical unemployment is the ?


a Portion of unemployment that is due to the normal working of the labour market


b Portion of unemployment that is due to changes in the structure of the economy that results in a significant loss of jobs in certain industries.


cUnemployment that results when people become discouraged about their chances of finding a job so they stop looking for work.


dUnemployment that occurs during recessions and depressions



An individual who is not working and who has given up looking for work is classfied as ?


a a discouraged worker


bunemployed.


c hard core unemployed.


dunemployable



The labour force can be defined as ?


a Those who could claim benefit if they were to become unemployed.


bThe population between school leaving age and retirement age.


c anyone who is working or actively seeking work


dThose of working age who are seeking work and are available to for work at current wage rates.



Reducing inflation is a more important objective than economic growth is an example of ?


aNormative economics


b Positive economics


cObjective economics


dReality economics


View Answer Objective economics

Which of the following is a possible government objective as opposed to a policy ?


aLower interest rates


b Lower taxation rates


c Lower government spending


dLower inflation


View Answer Lower interest rates

Which of the following can the government not use directly to control the economy ?


aPay rates within the private sector


bpay rates in the public sector


cinvestment in education


d Benefits available for the unemployed and sick



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