Which element of the Word window shows the position of text, tabs, margins, indents and other items on the page?
Correct answer A. Ruler
Topic / 29 questions
Inflation & Productivity MCQs
Inflation & Productivity MCQs cover how rising prices are measured and how they affect real incomes, wages and the wider economy, using tools such as the CPI and GDP deflator. They help economics students, CSS candidates and banking test takers. Every question displays its correct answer instantly, so you can check calculations and concepts as you go.
- Miscellaneous Economics 737
- Basic of Economics 430
- Markets, Efficiency And The Public Interest 167
- Agriculture & Irrigation System of Pakistan 126
- Market 87
- Macroeconomic Issues and Analysis 75
- Money, Interest Rates And Output 73
- Introduction To Economics 70
- Population And Development 62
- Profit Maximizing Under Perfect Competition And Monopoly 56
- Income Inequality 52
- Non-Tariff Trade Barriers 48
- Aggregate Supply, Unemployment And Inflation 45
- Natural Resources and the Environment Toward Sustainable Development 44
- Costs , Supply And Perfect Competition 44
- Human Capital 42
- Labour Market 39
- Monopoly 35
- Long Term Economic Growth 30
- Inflation & Productivity 30
- Regional Trading Arrangements 29
- Characteristics and Institutions of Developing Countries 24
- Oligopoly 23
- Consumer Theory vs. Real Consumers 20
- Applied Microeconomics 20
- Alternative Theories Of The Firm 20
- Public Goods 20
- Balance of Payments, Aid and Foreign Investment 19
- Prices, Wages & Taxes 19
- Comparative GDP 19
- Budget Deficits And The Trade Balance 18
- Macroeconomic Policy Tools 18
- Asymmetric Information 17
- Application of Economics 16
- Production Factors 16
- Monopoly & Competition 15
- Capital Formation, Investment Choice, Information Technology, And Technical Progress 15
- Monetary, Fiscal And Incomes Policy, And Inflation 15
- Average And Total Cost 14
- Poverty, Malnutrition, And Income Inequality 12
- Monetary Union 10
Which keyboard shortcut sets 1.5 line spacing in Microsoft Word?
Correct answer D. Ctrl + 5
Which keyboard shortcut applies bold formatting?
Correct answer D. Ctrl + B
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Which keyboard shortcut applies the Normal style in Microsoft Word?
Correct answer C. Ctrl + Shift + N
In word processing, which mode lets you enter new text at the current cursor position without overwriting existing text?
Correct answer D. Insertion Mode
Inflation can be measured by all of the following EXCEPT which one?
Correct answer D. Finished goods price index
Which of the following would probably make Pakistan’s CPI rise by more than its GDP deflator?
Correct answer B. An increase in the price of BMWs produced in Germany and sold in Pakistan
A rise in the price of apples leads consumers to buy fewer kilograms of apples and more kilograms of oranges. Which bias will this create in the CPI?
Correct answer C. Substitution bias
Your income rises from Rs19,000 to Rs31,000 while the CPI rises from 122 to 169. What has most likely happened to your standard of living?
Correct answer B. It has risen
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If inflation is 8 percent and the real interest rate is 3 percent, what must the nominal interest rate be?
Correct answer A. 11 percent
In which of these situations would you rather be the borrower?
Correct answer D. The nominal rate of interest is 20 percent and the inflation rate is 25 percent
Workers and firms agree a pay rise based on expected inflation, but inflation turns out higher than expected. What happens?
Correct answer B. Firms gain at the expense of workers
What does inflation do?
Correct answer B. It reduces the purchasing power of a rupee
A rise in aggregate demand is most likely to cause demand-pull inflation under which condition?
Correct answer B. Aggregate supply is perfectly inelastic
What could offset the effect of inflation on the price competitiveness of a country’s products?
Correct answer A. A depreciation of the currency
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In the short run, under what condition may unemployment fall below its natural rate?
Correct answer D. Nominal wages have risen more than inflation
The Phillips curve shows the relationship between inflation and which other variable?
Correct answer D. Unemployment
The CPI was 124.0 in 1989 and 130.7 in 1990. What was the rate of inflation over this period?
Correct answer B. 5.4 percent
What makes up the “basket” on which the CPI is based?
Correct answer B. Products purchased by the typical consumer
If the nominal interest rate is 7 percent and inflation is 3 percent, what is the real interest rate?
Correct answer C. 4 percent
About Inflation & Productivity MCQs
Questions here mix concept and calculation. You may be asked whether your standard of living rose when income increased from Rs19,000 to Rs31,000 while the CPI rose from 122 to 169, which requires comparing nominal and real income. Other items compare the CPI with the GDP deflator, explain how wage agreements based on expected inflation affect real wages, and cover the Phillips curve and the effect of injections or rising costs on output and prices. Understanding these links is important for macroeconomics papers in civil service, banking and lecturer exams.
Exams that include Inflation & Productivity MCQs
Pakistan
- CSS
- PMS
- FPSC
- Banking job tests
India
- UPSC CSE
- IBPS PO
- SBI PO
- UGC NET
Bangladesh
- BCS
- Bangladesh Bank recruitment
- Bank job exams
Frequently asked questions
What is the difference between the CPI and the GDP deflator?
The CPI measures the price of a fixed basket of goods and services bought by typical consumers, including imports. The GDP deflator covers all goods and services produced domestically, with weights that change as output changes. A rise in imported fuel prices therefore raises the CPI more than the deflator.
How do you tell if real income has increased?
Divide nominal income by the price index and compare the results. For example, Rs19,000 at a CPI of 122 and Rs31,000 at a CPI of 169 give real values of about 155.7 and 183.4. Real income has risen, so the standard of living improved despite inflation.
How many Inflation and Productivity MCQs are on MCQs360?
MCQs360 has 30 Inflation and Productivity MCQs, all free with no sign-up and with instant answers. They are useful for practising real income calculations and price index questions that often appear in economics and banking tests.
Last reviewed October 2026