• Economics Quiz – 6

    51 Immediate effect of Inflation?
      A) Increased purchasing power
      B) Decreased purchasing power
      C) Increased Interest rates
      D) Decreased Interest rates
       
    52 Philips Curve is used to show relationship between
      A) Inflation and Unemployment rate
      B) Inflation and GDP
      C) GDP and Unemployment rate
      D) None of these
       
    53 Which sequence is correct for business cycle
      A) Recession ->Expansion-> Trough->Peak
      B) Recession->Trough->Expansion->Peak
      C) Trough->Recession->Expansion->Peak
      D) Recession->Peak ->Expansion-> Trough
       
    54 Most likely attribute of Recession phase
      A) Higher economic growth
      B) High unemployment rate
      C) Higher industrial activity
      D) Increasing inflation pressure
       
    55 The Laffer curve portrays the relationship between
      A) Inflation and Unemployment rate
      B) Inflation and Tax Revenue
      C) GDP and Unemployment rate
      D) Tax Revenue and Tax rate
       
    56 Most Immediate effect of Interest rate hike by Central bank
      A) Lower Inflation
      B) Decrease in demand
      C) Increase in home/car/other loan rates
      D) Lower profitability of interest sensitive sectors
       
    57 Most immediate effect of monetary policy tools on?
      A) Inflation
      B) Yield rate on government bond
      C) Interest rate
      D) Economic growth
       
    58 Adam Smith is associated with which Economics theary?
      A) Monetarism
      B) New Classical Economics
      C) Classical Economics
      D) Keynesian Economics
       
    59 Which economics theory says “lowering the wages of employees would reduce their productivity and hence the profit of the firm would go down”?
      A) Monetarism
      B) New Keynesians Economics
      C) Classical Economics
      D) Keynesian Economics
       
    60 Which in the list is not a Government technique to fund fiscal deficit?
      A) Extra Taxation
      B) By Selling fixed assets
      C) Divestment in Government companies
      D) Subsidy

     

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