A. private sector imports and exports
B. economic policy
C. the duration of compulsory education
D. labor supply changes
Economics Mcqs
Real business cycle theorists argue that ……… can explain short- and long-term fluctuation in output?
A. imperfect labor markets
B. rational expectations
C. intertertemporal decisions of households, firms and government
D. sun spot cycles
The idea of convergence of GDP in Europe suggests that ?
A. All countries will eventually join the EEC
B. Poorer countries have higher capital/labour ratios than richer countries.
C. The gap between countries GDP per head will widen
D. Poorer less developed countries will catch up with richer ones.
The best way to achieve economic growth is to ?
A. increase government spending
B. reduce taxation
C. save more
D. increase personal consumption
The long run equilibrium level of national income is the level at which ?
A. economic growth is Zero
B. All investment is used in the manufacturing sector
C. Economic growth is growing
D. All investment is used to maintain the existing capital stock at its current level
The growth path resulting from technological progress for a given saving rate is known as the ?
A. Steady state growth path
B. Steady state invention rate
C. Steady state level of output
Unsteady state growth path
The belief that the rate of growth depends upon technological progress facilitated by institutions incentives and government is known as …….. growth theory?
A. endogenous
B. exogenous
C. beta
D. convergence
A combined measure of productivity that takes account of both labor and capital productivity is known as ?
A. total exploitation
B. labour/capital productivity
C. total factor productivity
D. total productivity
Governments can stimulate productivity by ?
A. Imposing higher taxes on capital
B. encouraging more labour intensive work to reduce unemployment
C. reducing spending in education
D. encouraging private investment
GDP per head may be an imperfect measure of economic welfare because it excludes ?
A. the value of leisure
B. Externalities
C. Untraded goods
D. Change in the distribution of income
E. All of the above