If British residents want more French francs to buy more French clothes, other things equal, what happens to the equilibrium value of the pound against the franc?
Correct answer C. Fall
Subject / 2,616 questions
Economics MCQs
Page 77 of Economics multiple-choice questions with answers. Tap an option to check yourself.
Page 77 of 131
- 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
What does the golden-rule saving rate achieve?
Correct answer D. It maximises the level of long-run consumption
What might a country with a current account deficit have to do?
Correct answer A. Reduce its stock of foreign assets
Advertisement
What is the name for the percentage of the working-age population that is in the workforce?
Correct answer B. Participation rate
What effect does a rise in the real exchange rate have on the competitiveness of the domestic economy?
Correct answer C. Reduce it
Which of these is NOT a policy for encouraging productivity?
Correct answer A. Building more retail outlets
Perfect international capital mobility implies that international funds will respond to differentials in which variable?
Correct answer A. Interest rate
Which of these does NOT influence productivity?
Correct answer C. The phase of the lunar cycle
With fixed exchange rates and no private currency flows, what happens to the domestic money supply when the central bank buys domestic currency?
Correct answer B. It is reduced
Advertisement
Supply-side policies are regarded as effective in doing which of the following?
Correct answer D. Encouraging technological progress
What effect does a fixed exchange rate combined with perfect capital mobility have on the scope for monetary policy?
Correct answer C. Undermines it
Potential output can be raised in which two ways?
Correct answer D. Increasing the use of all inputs, technical advances
Under floating exchange rates, expectations of higher interest rates tend to cause what to happen to the exchange rate?
Correct answer B. Appreciation
In neoclassical growth theory, what does a higher saving rate lead to in the long run?
Correct answer B. No change in the growth rate
Under floating exchange rates, what would we expect to happen to the currency of a country whose inflation is higher than its competitors’?
Correct answer D. Depreciate
Advertisement
Economic growth may depend on which two factors?
Correct answer C. Population growth and technical progress
In the ERM, each country fixed ____ against the other participants, while collectively the group ____ against the rest of the world. Which pair completes the sentence?
Correct answer C. A nominal exchange rate, floated
Growth rates tend to converge because ____ is easier when capital per worker is low, and because of ____. Which pair completes the sentence?
Correct answer C. Capital-deepening, catch-up in technology
Which of these is NOT a benefit of the European single market?
Correct answer B. It is easier to book holidays in member countries
Which theory explains business cycles through the dynamic interaction between consumption and investment demand?
Correct answer D. Multiplier-accelerator model