We are here with you hands in hands to facilitate your learning & don't appreciate the idea of copying or replicating solutions. Read More>>
+ Link For Assignments, GDBs & Online Quizzes Solution |
+ Link For Past Papers, Solved MCQs, Short Notes & More |
Dear Students! Share your Assignments / GDBs / Quizzes files as you receive in your LMS, So it can be discussed/solved timely. Add Discussion
How to Add New Discussion in Study Group ? Step By Step Guide Click Here.
Quiz # 04
ECONOMICS (ECO401)
Dear Students!
This is to inform that Quiz # 04 will be opened on August 06, 2014 and last date to attempt quiz will be August 08, 2014.
Instructions:
Tags:
+ How to Follow the New Added Discussions at Your Mail Address?
+ How to Join Subject Study Groups & Get Helping Material? + How to become Top Reputation, Angels, Intellectual, Featured Members & Moderators? + VU Students Reserves The Right to Delete Your Profile, If?.
+ http://bit.ly/vucodes (Link for Assignments, GDBs & Online Quizzes Solution)+ http://bit.ly/papersvu (Link for Past Papers, Solved MCQs, Short Notes & More)
+ Click Here to Search (Looking For something at vustudents.ning.com?) + Click Here To Join (Our facebook study Group)A study of how increases in the minimum wage rate will affect the national unemployment rate is an example of
A. descriptive economics.
B. normative economics.
C. macroeconomics. = Correct Option
D. microeconomics.
2 Aggregate supply is the total amount
A. of goods and services produced in an economy. = Correct Option
B. produced by the government.
C. of products produced by a given industry.
D. of labour supplied by all households.
3 The total demand for goods and services in an economy is known as
A. aggregate demand. = Correct Option
B. national demand.
C. gross national product.
D. economy-wide demand.
4 Deflation is
A. an increase in the overall level of economic activity.
B. an increase in the overall price level.
C. a decrease in the overall level of economic activity.
D. a decrease in the overall price level. = Correct Option
5 A recession is
A. a period of declining prices.
B. a period during which aggregate output declines.
C. a period of declining unemployment.
D. a period of falling trade volumes.
6 Involuntary unemployment means that
A. people are not willing to work at the going wage rate.
B. at the going wage rate, there are people who want to work but cannot find work. = Correct Option
C. there are some people who will not work at the going wage rate.
D. there is excess demand in the labour market.
7 A cut in the income tax rate designed to encourage household consumption is an example of
A. expansionary demand-side policy. = Correct Option
B. contractionary demand-side policy.
C. expansionary supply-side policy.
D. contractionary supply-side policy.
8 A cut in the tax rate designed to reduce the cost of capital and hence encourage business investment is an example of
A. expansionary demand-side policy.
B. contractionary demand-side policy.
C. expansionary supply-side policy. = Correct Option
D. contractionary supply-side policy.
9 Macroeconomics is the branch of economics that deals with
A. the economy as a whole. = Correct Option
B. imperfectly competitive markets.
C. only the long run adjustments to equilibrium in the economy.
D. the functioning of individual industries and the behaviour of individual decision-making units - business firms and households.
10 A group of modern economists who believe that price and wage rigidities do not provide the only rationale for macroeconomic policy activism are called:
A. New-Keynesians. = Correct Option
B. Keynesians.
C. Monetarists.
D. The Classical school.
11 Macroeconomic theory that emphasised the theories of Keynes and de-emphasised the Classical theory developed as the result of the failure of
A. economic theory to explain the simultaneous increases in inflation and unemployment during the 1970s.
B. fine tuning during the 1960s.
C. the economy to grow at a rapid rate during the 1950s.
D. the Classical model to explain the prolonged existence of high unemployment during the Great Depression. = Correct Option
12 Keynes believed falling wages were not a solution to persistent unemployment because
A. falling wages demoralised workers.
B. this would reduce the purchasing power of labourers as consumers. This in turn would bleaken firms’ prospects of selling more goods, hence inducing them to cut their investment (and hence labour) demand.
C. the unemployment was caused by frictional and structural factors.
D. wages would fall more than required to clear the labour market.
13 The practice of using fiscal and monetary policy to stabilise the economy is known as
A. fine tuning of demand = Correct Option
B. monetarism
C. laissez faire economics
D. supply side economics
14 According to Classical models, the level of employment is determined primarily by
A. interest rates.
B. the level of prices.
C. the level of aggregate supply in the economy = Correct Option
D. the level of aggregate demand for goods and services.
15 According to Keynes, the level of employment is determined by
A. interest rates.
B. the level of prices.
C. the level of aggregate supply in the economy
D. the level of aggregate demand for goods and services. = Correct Option
16 According to the Classical model, unemployment
A. could not persist because wages would fall to eliminate the excess supply of labour.
B. could persist for long periods of time because wages are not flexible.
C. could be eliminated only through government intervention.
D. could never exist.
17 To get the economy out of a slump, Keynes believed that the government should
A. increase both taxes and government spending. = Correct Option
B. increase taxes and/or decrease government spending.
C. cut both taxes and government spending.
D. decrease taxes and/or increase government spending. = Correct Option
18 Aggregate demand refers to the total demand for all domestically produced goods and services in an economy generated from
A. the household and government sectors.
B. the household sector.
C. all sectors except the rest of the world.
D. all sectors including the rest of the world. = Correct Option
19 Government policies that focus on increasing production rather than demand are called:
A. fiscal policies.
B. monetary policies.
C. incomes policies.
D. supply-side policies. = Correct Option
20 Prices that do not always adjust rapidly to maintain equality between quantity supplied and quantity demanded are
A. market prices.
B. sticky prices. = Correct Option
C. fixed prices.
D. regulatory prices.
Welcome
© 2019 Created by + M.Tariq Malik.
Powered by
Promote Us | Report an Issue | Privacy Policy | Terms of Service
VU Students reserves the right to delete profile, which does not show any Activity at site nor has not activity more than 01 month.
We are user-generated contents site. All product, videos, pictures & others contents on vustudents.ning.com don't seem to be beneath our Copyrights & belong to their respected owners & freely available on public domains. We believe in Our Policy & do according to them. If Any content is offensive in your Copyrights then please email at m.tariqmalik@gmail.com or Contact us at contact Page with copyright detail & We will happy to remove it immediately.
Management: Admins ::: Moderators
Awards Badges List | Moderators Group
All Members | Featured Members | Top Reputation Members | Angels Members | Intellectual Members | Criteria for Selection
Become a Team Member | Safety Guidelines for New | Site FAQ & Rules | Safety Matters | Online Safety | Rules For Blog Post