Economics MCQs

Page No. 246

Which of the following is not a macroeconomic issue ?


aUnemployment

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bInflation

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cThe wages paid to footballers

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dEconomic growth

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View Answer Economic growth

Which of the following is not involved with fiscal policy ?


a Income tax

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b National insurance

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cVAT

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dInterest insurance

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View Answer Income tax

Which of the following is macroeconomic issue ?


aThe price of houses in karachi

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bThe wage rate for plumbers in Islamabad

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cYour decision to work or stay at home

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dThe level of unemployment is pakistan

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Which of the following is an automatic stabilizer ?


a Spending on public schools

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bMilitary spending

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cspending on the space shuttle

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dUnemployment benefits

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View Answer Unemployment benefits

Suppose the government increases its purchases by Rs16 billion. If the multiplier effect exceeds the crowding out effect, then ?


aThe aggregate supply curve shifts to the right by more than Rs 16 billion

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bThe aggregate demand curve shifts to the left by more than Rs 16 billion

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cThe aggregate demand curve shifts to the right by more than Rs 16 billion

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d the aggregate supply curve shifts to the left by more than Rs 16 billion

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When an increase in government purchases raises incomes shifts money demand to the right raises the interest rate, and lowers investment we have seen a demonstration of ?


asupply-side economics

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bNone of these answers

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cThe crowding-out effect

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dThe multiplier effects

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An increase in the marginal propensity to consumer (MPC) ?


araises the value of the multiplier

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bhas no impact on the value of the multiplier?

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c rarely occurs because the MPC is set by congressional legislation

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d lowers the value of the multiplier

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The initial impact of an increase in government spending is to shift ?


a aggregate demand to the right

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b aggregate demand to the left

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caggregate supply to the right

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daggregate supply to the left

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The initial effect of an increase in the money supply is to ?


a increase the interest rate

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b increase the price level

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cdecrease the price level

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ddecrease the interest rate

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For the Eurozone countries, the most important source of the downward slope of the aggregate demand curve is probably ?


a The wealth effect

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bNone of these answers

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c The fiscal effect

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dThe interest-rate effect

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