Economics MCQs

Correct answer B. It improves equity at the expense of efficiency

Correct answer D. Increasing spending on existing industries

Correct answer A. It allows a country to have a greater variety of products at a lower cost than if it tried to produce everything at home

Correct answer C. The downward multiplier

Correct answer C. A student has a party in her room in the student hall of residence

Correct answer D. Microsoft's impact on the price of desktop operating systems

Correct answer C. The natural rate of unemployment

Correct answer B. A decrease in inflation temporarily increases unemployment

Correct answer C. Not in the labour force

Correct answer B. Rs 800

Correct answer C. Improving the education of workers

Correct answer A. Structural unemployment

Correct answer B. The minimum wage the worker is willing to accept

Correct answer A. The quantity of other goods sacrificed to get another unit of that good

Correct answer A. Prices adjust to reconcile scarcity and desires

Correct answer C. Frictional unemployment

Correct answer B. Because there are changes in the demand for labour among different firms

Correct answer A. More of the activity

Correct answer A. Paying above the competitive equilibrium wage may improve worker health, lower worker turnover, improve worker quality and increase worker effort

Correct answer B. They suggest relationships for explanation and allow testing of hypotheses