Economics MCQs

Page No. 361

Refer to Exhibit 4. If a tax is placed on the product in this market consumer surplus is the area ?


aD

✖


bA

✓


cA + B + E

✖


d A + B +C + D

✖


View Answer A

Refer to Exhibit 4. If there is no tax placed on the produced in this market consumer surplus is the area ?


aC+D+F

✖


b A

✖


cA+B+E

✓


dD+C+B

✖


View Answer A+B+E

According to the model of aggregate supply and aggregate demand in the long run an increase in the money supply should cause ?


a Prices to rise and output to rise

✖


bPrice to fall and output to remain unchanged

✖


c Prices to fall and output to fall

✖


d. prices to rise and output to remain unchanged

✓



Refers to Exhibit 4. Suppose the economy is operating in a recession such as point B in Exhibit 4. If policy makers wished to move output to its long run natural rate they should attempt to


aShift aggregate demand to the left

✖


b Shift short run aggregate supply to the left

✖


c shift aggregate demand to the right

✓


dshift short-run aggregate supply to the right

✖



Stagflation occurs when the economy experiences ?


a rising prices and rising output

✖


brising prices and falling output

✓


c falling prices and falling output

✖


dfalling prices and rising output

✖



Suppose the economy is initially is long run equilibrium Then suppose there is a drought that destroys much of the wheat crop According to the model of aggregate demand and aggregate supply, what happens of prices and output in the short run ?


aPrice rise; output falls

✓


b Price fall; output rises

✖


cPrice rise; output rises

✖


dPrice fall; output falls

✖



Suppose the economy is initially in long-run equilibrium Then suppose there is an increase in military spending due to rising international tensions According to the model of aggregate demand and aggregate supply what happens to prices and output in the short run ?


aPrice fall; output rises

✖


b Price fall; output falls

✖


c Price rise; output fall

✖


dPrice rise; output rise

✓



Suppose the price level falls but because of fixed nominal wage contracts the real wage rises and firms cut back on production This is a demonstration of the ?


a sticky-wage theory of the short-run aggregate supply curve

✓


bclassical dichotomy theory of the short-run aggregate supply curve

✖


c misperceptions theory of the short-run aggregate supply curve

✖


dsticky-price theory of the short run aggregate supply curve

✖



According to the wealth effect aggregate demand slopes downward (negatively) because ?


a lower prices increase the value of money holding and consumers spending increase

✓


b lower prices decrease the value of money holding and consumers spending decrease

✖


clower prices reduce money holding increase lending, interest rates fall and investment spending increase

✖


dlower prices increase money holding decrease lending, interest rates rise and investment spending falls

✖



Which of the following is not a reason why the aggregate demand curve slopes downward ?


a The exchange-rate effect

✖


bThe wealth effect

✖


cThe classical dichotomy/monetary neutrality effect

✓


dThe interest-rate effect

✖



Goto Page No.

Page 361 of 444

Alphabetical MCQs Categories
—

Here below You find all kind of categories of MCQs in alphabetical order.


"Comprehensive Collection of MCQs: Alphabetically Organized by Subject"
—

"Discover an extensive collection of multiple-choice questions (MCQs) neatly categorized by subject from A to Z. This resource is designed for anyone eager to explore various topics in a straightforward and organized manner. Whether you're a student preparing for exams, an educator seeking supplementary materials, or simply curious about different subjects, this compilation offers a convenient way to learn and assess your knowledge. With questions arranged alphabetically, navigation is effortless, allowing you to delve into subjects of interest at your own pace. Engage, learn, and expand your understanding with this accessible and comprehensive repository of MCQs!"


BolPakistan

bolpakistan.com.pk includes Job Mcqs and Pak Mcqs is the Top Largest Mcqs Forum in World, in which you can read Mcqs of All Subjects, PPSC test preparation, FPSC, NTS and PPSC PAST PAPERS, PPSC PAST MCQS. A Collection of Repeated MCQs for JOBs seekers.

Copyright © 2024, Designed & Developed by BolPakistan