(A) Technological Unemployment
(B) Demand Deficient Unemployment
(C) Real Wage Unemployment
(D) Regional Unemployment
Tag: Economics Mcqs
An unspoken agreement between workers and firms that the firm will not cut wages is known as:
(A) An explicit contract.
(B) An implicit or social contract.
(C) Employment-at-will.
(D) A relative-wage contract.
Which school of economic thought suggested that one possible cause of inflation was a ‘push’ from the cost side?
(A) New classical economists.
(B) Monetarists.
(C) Marxists.
(D) Keynesians.
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, if the inflation rate is zero.
(D) That can be sustained in the long run without inflation.
Those that hold the classical view of the labour market are likely to believe that:
(A) Monetary, but not fiscal policy will have an effect on output and employment.
(B) Both monetary and fiscal policy will have an effect on output and employment.
(C) Fiscal, but not monetary policy will have an effect on output and employment.
(D) Neither monetary nor fiscal policy will have an effect on output and
employment.
One of the tenets of the classical view of the labour market is that the wage adjustments that are necessary to clear the labour market occur:
(A) Slowly.
(B) Quickly.
(C) Very infrequently.
(D) Instantly.
Inflation:
(A) Reduces both the purchasing power of the dollar and one’s real income
(B) reduces the purchasing power of the dollar and increases one’s real income
(C) Reduces the purchasing power of the dollar but may have no impact on
one’s real income
(D) Increases the purchasing power of the dollar and reduces one’s real income
In a portfolio investment:
(A) Investors are directly involved in managing the operations.
(B) As in direct investment, investors export goods and services abroad.
(C) Investors transfer the technology to local investors.
(D) Investors have no control over operations.