Economics Practice MCQ Page 38

Multiple Choice questions for Economics in the sets of 10 each on one page with questions and answers. All sets are useful in the preparation of subject tests for employment or admission.
Question: 3466   The natural rate of unemployment has been increasing for all of the following reasons except
  1. higher taxes on unemployment benefits
  2. increasing labor force participation by teenagers
  3. increasing labor force participation by women
  4. expanded coverage of unemployment benefits
Question: 3467   Which of the following statements concerning the minimum wage is true?
  1. the percentage of covered employment has increased
  2. the relative minimum wage has increased
  3. only teenagers are covered by the minimum wage
  4. only persons living in poverty are covered by the minimum wage
Question: 3468   Unanticipated inflation cause unemployment to fall if
  1. workers believe real wages are failing
  2. workers believe real wages are rising
  3. firms believe real wages are rising
  4. firms believe their costs are rising
Question: 3469   Search theory predicts a negative relationship between unemployment and
  1. interest rates
  2. unemployment benefits
  3. unanticipated inflation
  4. the benefits of search
Question: 3470   Unanticipated inflation can
  1. lower worker's reservation wage
  2. increase the amount of search
  3. increase the amount of search
  4. make nominal wage offers less attractive
  5. shorten job search in the economy
Question: 3471   In order to reduce the mismatch between unemployed worker skills and skill requirements for vacant jobs, the federal government enacted manpower training programs which
  1. substantially lowered the natural rate of unemployment
  2. did not stop teenage unemployment from rising
  3. were primarily operated to train adult workers
  4. specifically excluded vocational and remedial training
Question: 3472   Milton Freedman's 100 year evidence for monetarism suggests
  1. the business cycle could be eliminated if monetarism were adopted
  2. there is no evidence that excess monetary growth is associated with inflation in the long run
  3. inflation is caused by deficit spending by the federal government
  4. the short run link between money and prices is variable and unpredictable
Question: 3473   In the short run an unanticipated one time increase in the money supply leads to
  1. a proportional increase in price with no change in output or interest rates
  2. increase in output and prices but no change in interest rates
  3. increase in output and prices and a decline in interest rates
  4. an increase in output but no change in prices or interest rates
  5. an increase in output, a decline in interest rate, but no change in prices
Question: 3474   Supply side inflation can be caused by
  1. an increase in the money supply
  2. an increase in the money supply
  3. a poor harvest
  4. a tax reduction
  5. an increase in labor productivity
Question: 3475   In the long run, the rate of inflation is usually
  1. greater than the rate o monetary growth
  2. equal to the rate of monetary growth
  3. less than the rate of monetary growth
  4. equal to the interest rate
  5. greater than the interest rate
Question: 3476   In the long run, an unanticipated, one time increase in the money supply leads to
  1. a proportional increase in prices with no change in output or interest rates
  2. increase in output and prices but no change in interest rates
  3. increase in output and prices and a decline in interest rates
  4. an increase in output but no change in prices or interest rates
  5. an increase in output , a decline in interest rates, but no change in prices.
Question: 3477   As a result of an unanticipated one time increase in the money supply the aggregate demand curve shifts
  1. downward only in the short run
  2. down ward in the short and long run
  3. downward only in the long run
  4. upward in the short and long run
  5. upward only in the short run

Answers to the questions of Economics on this page

Following list gives the correct choice for the answer of the Economics mcqs.
3466 . A       3467 . A       3468 . B       3469 . C       3470 . D       3471 . B       3472 . D       3473 . C       3474 . C       3475 . C       3476 . A       3477 . D      

Select Page Number

Economics Page 1Economics Page 2Economics Page 3Economics Page 4Economics Page 5Economics Page 6Economics Page 7Economics Page 8Economics Page 9Economics Page 10Economics Page 11Economics Page 12Economics Page 13Economics Page 14Economics Page 15Economics Page 16Economics Page 17Economics Page 18Economics Page 19Economics Page 20Economics Page 21Economics Page 22Economics Page 23Economics Page 24Economics Page 25Economics Page 26Economics Page 27Economics Page 28Economics Page 29Economics Page 30Economics Page 31Economics Page 32Economics Page 33Economics Page 34Economics Page 35Economics Page 36Economics Page 37Economics Page 38Economics Page 39Economics Page 40Economics Page 41Economics Page 42Economics Page 43Economics Page 44Economics Page 45Economics Page 46Economics Page 47Economics Page 48Economics Page 49Economics Page 50Economics Page 51

MCQ for Practicing Subject Tests

Biology Chemistry Computer Sciences Management Physics Other Subjects
USA College Scholarships Computer Sciences MCQ Management Sciences MCQ Physics MCQ Chemistry MCQ Biology MCQ

----------------------