Economics MCQs

Page No. 245

As prices rise, there will be costs of constantly changing price-tags and reprinting price-lists This is called ?


areal balance effect


b menu costs of inflation


cmoney illusion.


dcost-push inflation.



The natural rate of unemployment is generally thought of as the ?


aratio of the frictional unemployment rate to the cyclical unemployment rate.


b Sum of structl uneural unemployment and cyclical unemployment.


cSum of frictional unemployment and cyclical unemployment


dsum of frictional unemployment and structural unemployment.



Unemployment resulting from changes in the pattern of demand or supply in the economy is called _______ unemployment?


aregional


btechnological


cstructural


d demand-deficient


View Answer structural

Unemployment resulting from real wages being above their equilibrium level is called _________ unemployment?


anatural


bfrictional


cdisequilibrium


dstructural


View Answer disequilibrium

Aggregate demand is the total demand for all goods and services in an economy from ?


a the household and government sectors


b the household sector.


c all sectors of except the rest of the world


dall sectors of the economy including the rest of the world.



Classifying discouraged workers as unemployed would ?


anot change the unemployment rate


bdecrease the unemployment rate


cincrease the unemployment rate


d have an indeterminate impact on the unemployment rate



Since 1998 many government have defined unemployment using ?


aa labour force survey.


bthe number out of work and claiming benefit


cthe percentage of the labour force not in work


dthe ILO/OECD standardised unemployment measurement



The percentage of the labour force that is unemployed is the ?


a Unemployment population ratio.


b Unemployment rate


cemployment rate


d Labour force rate.


View Answer Unemployment rate

Which of the following is not likely to be government objective ?


aIncreasing employment


b Increasing economic growth


cIncreasing government spending


dIncreasing the level of exports



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


a lower interest rates


bA better balance of trade position


cFaster economic growth


dLower unemployment


View Answer Lower unemployment

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