📊Economics MCQs
Economics MCQs
451 MCQs241
If the income tax rate changes from 30% to 40% on income over Rs30,000 and a person’s income is Rs 31,000 then her marginal tax rate is ?
A30%
B10%
C70%
D40%
242
During Periods of rising inflation and rising interest rates we expect the demand for real cash to ?
Arise
Bfall
Cnot changes
Dfluctuates
243
The quantity theory of money says that changes in ____lead to equivalent changes in ____ but have no effect on ______?
Aprices, wages, output and employment
Boutput prices, employment
Cnominal money, the price level, output and employment
Dnominal money output prices
244
Expansionary fiscal policy in the classical model will cause aggregate demand to _______ potential output?
Aexceeds
Bfall below
Cfluctuate around
Dremain equal to
245
At the intersection of AD and AS equilibrium is achieved in ?
Athe goods market
Bthe money markets
Cthe labor markets
Dall of these
246
In the classical model, potential output cannot be increased by ?
Amonetary growth
Bbetter technology
Cmore capital
Dhigher labor supply
247
The AD schedule indicates that _______ inflation is associated with ________ output?
Ahigher, lower
Bhigher, higher
Clower, lower
Dzero, zero
248
All the following are types of monetary policy expect ?
Aa nominal money stock target
Ba balanced budget
Can inflation target
DThe pursuit of a target real interest rate
249
The relative-wage explanation for the existence of downwardly sticky wages emphasizes ?
Athe 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
Bemployment contracts that stipulate workers’ wages usually for a period of one to three years
Cunspoken agreements between workers and firms that firms will not cut wages
Dthe incentive that firms may have to hold wages above the market clearing rate
250
When economists use the term real business cycle theory they are suggesting that business cycles are caused by ?
AShifts in aggregate supply
Bchanges in export demand due to the state of the world economy
Cbusiness confidence
Dbusiness expectations