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Economics Mcqs

Unemployment resulting from imperfect information in the labour market is called …. unemployment?

A. Frictional
B. natural
C. real-wage
D. disequilibrium

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The demand for ice-cream is lower outside of summer causing lower demand for ice-cream salesman if they cannot find other work, this is called ……. unemployment?

A. Regional
B. structural
C. seasonal
D. demand-deficient

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As prices rise. People will want to keep more money as cash and in bank accounts This is called ?

A. real balance effect.
B. cash ratio.
C. money illusion.
D. menu costs of inflation.

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Government policies that focus on increasing production rather than demand are called ?

A. fiscal policies
B. monetary policies
C. supply-side policies
incomes policies

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Government policies that focus on changing interest rates are called ?

A. fiscal policies
B. monetary policies
C. supply-side policies
D. incomes policies

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If VAT rates rise, then costs are likely to … and demand is likely to ….?

A. rise; rise
B. rise; fall
C. fall; fall
D. fall; rise

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The record of country’s imports and exports of goods is called its ?

A. balance of trade:
B. balance of payments
C. balance of payments on current account
D. visible trade balance

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The record of a country’s imports and exports of of goods and services plus net investment incomes and current transfers of money to and from abroad, is called its ?

A. balance of payments on current account
B. visible trade balance
C. balance of trade
D. balance of payments

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The record of country’s transfers of land inter-government payments and money sent by migrants to and from abroad is called its ?

A. balance of payments
B. capital account of the balance of payments
C. financial account of the balance of payments
D. balance of payments on current account

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The price of one country’s currency in terms of another country’s currency is the ?

A. exchange rate
B. balance of trade
C. terms of trade
D. currency validation

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