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.

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cmoney illusion.

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d menu costs of inflation.

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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

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bstructural

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cseasonal

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d demand-deficient

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View Answer seasonal

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


aFrictional

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bnatural

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creal-wage

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d disequilibrium

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View Answer Frictional

Aggregate supply is the total amount ?


a of products produced by a given industry.

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bproduced by the government

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cof labour supplied by all households

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dof goods and services produced in an economy.

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Cyclical unemployment is the ?


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

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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.

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

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dUnemployment that occurs during recessions and depressions

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


a a discouraged worker

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bunemployed.

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c hard core unemployed.

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dunemployable

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The labour force can be defined as ?


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

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bThe population between school leaving age and retirement age.

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c anyone who is working or actively seeking work

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

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


aNormative economics

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b Positive economics

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cObjective economics

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dReality economics

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View Answer Objective economics

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


aLower interest rates

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b Lower taxation rates

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c Lower government spending

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dLower inflation

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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

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bpay rates in the public sector

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cinvestment in education

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d Benefits available for the unemployed and sick

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