MCQsDrive | MCQsDrive

Economics Mcqs 4423 MCQs [All-Courses]

Economics MCQs cover fundamental concepts of microeconomics and macroeconomics, including demand and supply, inflation, national income, and economic policies.
This section is designed to strengthen analytical skills and conceptual understanding for competitive examinations.
Highly useful for PPSC, FPSC, NTS, OTS, KPPSC, and other testing services preparation.

In the classical model, potential output cannot be increased by ?

A monetary growth

B better technology

C more capital

D higher labor supply

Review Detailed Answer

Correct Answer: monetary growth

The AD schedule indicates that _ inflation is associated with __ output?

A higher, lower

B higher, higher

C lower, lower

D zero, zero

Review Detailed Answer

Correct Answer: higher, lower

All the following are types of monetary policy expect ?

A a nominal money stock target

B a balanced budget

C an inflation target

D The pursuit of a target real interest rate

Review Detailed Answer

Correct Answer: a balanced budget

The relative-wage explanation for the existence of downwardly sticky wages emphasizes ?

A the contention that workers in one industry may be unwilling to accept a wage cut unless they know that workers in other industries are receiving similar cuts

B employment contracts that stipulate workers’ wages usually for a period of one to three years

C unspoken agreements between workers and firms that firms will not cut wages

D the incentive that firms may have to hold wages above the market clearing rate

Review Detailed Answer

Correct Answer: the contention that workers in one industry may be unwilling to accept a wage cut unless they know that workers in other industries are receiving similar cuts

When economists use the term real business cycle theory they are suggesting that business cycles are caused by ?

A Shifts in aggregate supply

B changes in export demand due to the state of the world economy

C business confidence

D business expectations

Review Detailed Answer

Correct Answer: Shifts in aggregate supply

Doubts about the natural and the existences of the Phillips curve arose in the 1970s when the economy experienced ?

A a high rate of inflation: along with a low rate of unemployment

B simultaneously low rates of inflation and unemployment

C simultaneously high rates of inflation and unemployment

D a high rate of unemployment along with a low rate of inflation

Review Detailed Answer

Correct Answer: simultaneously high rates of inflation and unemployment

If input price prices adjusted very rapidly to output prices as classical economists argue the Philips curve would be ?

A Vertical or nearly vertical

B upward sloping

C downward sloping

D horizontal or nearly horizontal

Review Detailed Answer

Correct Answer: Vertical or nearly vertical

The Phillips curve indicates that there is a ?

A negative relationship between the inflation rate and labor demand

B positive relationship between labor supply and the inflation rate

C positive relationship between the inflation rate and the employment the

D negative relationship between the inflation rate and the unemployment rate

Review Detailed Answer

Correct Answer: negative relationship between the inflation rate and the unemployment rate

Potential GDP is the level of aggregate output ?

A that can be produced if structural unemployment is zero

B that can be produced at a zero-unemployment rate

C that can be sustained in the long run without inflation

D that can be sustained in the long run, if the inflation rate is zero

Review Detailed Answer

Correct Answer: that can be sustained in the long run without inflation

In the long run, the Phillips curve will be vertical at the natural rate of unemployment if ?

A the long-run aggregate demand curve is horizontal at the natural rate of inflation

B the long run aggregate demand curve is vertical at potential GDP

C the long run aggregate demand curve is vertical at potential GDP

D The long run supply curve is horizontal at the natural rate of inflation

Review Detailed Answer

Correct Answer: the long run aggregate demand curve is vertical at potential GDP

Showing 11 to 20 of 42 results

Contact Info

Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

In the classical model, potential output cannot be increased by ?

The AD schedule indicates that _ inflation is associated with __ output?

All the following are types of monetary policy expect ?

The relative-wage explanation for the existence of downwardly sticky wages emphasizes ?

When economists use the term real business cycle theory they are suggesting that business cycles are caused by ?

Doubts about the natural and the existences of the Phillips curve arose in the 1970s when the economy experienced ?

If input price prices adjusted very rapidly to output prices as classical economists argue the Philips curve would be ?

The Phillips curve indicates that there is a ?

Potential GDP is the level of aggregate output ?

In the long run, the Phillips curve will be vertical at the natural rate of unemployment if ?

Contact Info

Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

In the classical model, potential output cannot be increased by ?

The AD schedule indicates that _______ inflation is associated with ________ output?

All the following are types of monetary policy expect ?

The relative-wage explanation for the existence of downwardly sticky wages emphasizes ?

When economists use the term real business cycle theory they are suggesting that business cycles are caused by ?

Doubts about the natural and the existences of the Phillips curve arose in the 1970s when the economy experienced ?

If input price prices adjusted very rapidly to output prices as classical economists argue the Philips curve would be ?

The Phillips curve indicates that there is a ?

Potential GDP is the level of aggregate output ?

In the long run, the Phillips curve will be vertical at the natural rate of unemployment if ?

The AD schedule indicates that _ inflation is associated with __ output?