Tag: economics

Quizzes (361) Questions (3598)

Questions Related to economics

Multiple choice economics income determination unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

Government expenditure is a component of the ____________ in the economy

  1. aggregate supply

  2. aggregate income

  3. aggregate demand

  4. all of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Government expenditure refers to the expenditure made by the government during the period of an accounting year which forms a part of the aggregate demand in the economy which is incurred either for consumption purpose like judiciary system or investment purpose like infrastructural development. 

Multiple choice economics income determination unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

The income received by a country through exports, in the form of _____________, can be utilized by the country to import required goods and services.

  1. domestic currency

  2. foreign currency

  3. SDRs

  4. none of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Import refers to purchasing of goods and services from international market in the country and export refers to selling goods and services in the international market. So when foreign currency is received through exports from a certain country it can be utilized in importing the required goods and services from that country. 

Multiple choice economics employment: growth, informalisation and other issues unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

Match the following:

List - I(Type of Unemployment) List - II(Associated Fact)
A. Frictional Unemployment 1. Non-availability of job
B. Structural Unemployment 2. Marginal productivity is zero
C. Seasonal Unemployment 3. Use of obsolete technology for production
D. Disguised Unemployment 4. Population pressure on land
  1. $4, 2, 1, 3$
  2. $1, 3, 4, 2$
  3. $4, 3, 1, 2$
  4. $1, 2, 4, 3$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Frictional unemployment relates to job searching (1); Structural unemployment relates to technological changes (3); Seasonal unemployment relates to population pressure/seasonal cycles (4); Disguised unemployment relates to zero marginal productivity (2).

Multiple choice economics employment: growth, informalisation and other issues unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

Sir Charles Wood's Despatch on Educational reform led to the establishment of first three universities in India.they were established during the year _____________.

  1. 1854

  2. 1857

  3. 1858

  4. 1904
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In 1854 , Sir Charles Wood in his Despatch on Educational Reforms led to the establishment of first three universities in India at Bombay , Calcutta and Madras.

Multiple choice economics employment: growth, informalisation and other issues unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

Frictional unemployment is consistent with full employment.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Frictional unemployment is an unemployment situation where people are not unemployed owing to not getting any job but they are unemployed because they are searching for a new job or they are getting transferred from one employment to the other. Frictional unemployment remains consistent with full employment if it is at a rate of 3-4% of the full employment. 

Multiple choice economics employment: growth, informalisation and other issues unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

Frictional unemployment rate of ________ is consistent with full employment level, as per the experience of developed countries.

  1. 3 to 4%

  2. 5 to 8%

  3. upto 2%

  4. 10 to 15%
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Frictional unemployment is an unemployment situation where people are not unemployed owing to not getting any job but they are unemployed because they are searching for a new job or they are getting transferred from one employment to the other. Frictional unemployment remains consistent with full employment if it is at a rate of 3-4% of the full employment. 

Multiple choice economics employment: growth, informalisation and other issues unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

When the aggregate spending is not sufficient to produce that level of output which requires full employment of the available resources, it results in ______________.

  1. inflation

  2. unemployment

  3. social problems

  4. none of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

When the aggregate spending is not sufficient to produce an adequate level of output which requires full employment of available resources then it means aggregate demand is less than aggregate supply, then the planned inventory rises above the desired level. To clear the unwanted increase in inventory, firms plan to reduce the output which reduces the employment in the economy. 

Multiple choice economics employment: growth, informalisation and other issues unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

The equilibrium below full employment level is termed as _____________.

  1. underemployment equilibrium

  2. over employment equilibrium

  3. aggregate disequilibrium

  4. none of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When the aggregate spending is not sufficient to produce an adequate level of output which requires full employment of available resources then it means aggregate demand is less than aggregate supply, then the planned inventory rises above the desired level. To clear the unwanted increase in inventory, firms plan to reduce the output which reduces the employment in the economy and results in AD=AS. This equilibrium point is below the full employment level of equilibrium which is called underemployment equilibrium. 

Multiple choice economics employment: growth, informalisation and other issues unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

_____________ may be defined as the situation when all those persons who are willing to work at the prevailing wage rate are getting work and are employed.

  1. Disguised employment

  2. Full employment

  3. Voluntary employment

  4. Involuntary employment
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Full employment refers to the situation when all the people who are willing to work in the economy at a prevailing wage rate are getting work and are employed to produce the desired level of output in the economy. 

Multiple choice economics employment: growth, informalisation and other issues unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

Excessive aggregate spending leads to full employment level of output accompanied with ____________.

  1. lower income level

  2. poverty

  3. inflation

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

When the aggregate spending is excessive then it leads to output which has full employment of available resources then it means aggregate demand is more than aggregate supply, then the planned inventory would fall below the desired level. To bring back the Inventory at the desired level, the producers expand the output but due to full employment of the available resources the output remains the same which leads to inflation in the economy.