Experiences over the last three decades has suggested that in order for economic development to occur, it is necessary for an economy to ?

Related Mcqs:

1. Stagflation occurs when the economy experiences ?

   A. rising prices and rising output
   B. rising prices and falling output
   C. falling prices and falling output
   D. falling prices and rising output

2. The amount of unemployment that the economy normally experiences is known as ?

   A. The natural rate of unemployment
   B. cyclical unemployment
   C. efficiency wage unemployment
   D. frictional unemployment

3. one of the tenets of the classical view of the labor market is that the wage adjustments that are necessary to clear the labor market occur ?

   A. quickly
   B. slowly
   C. very infrequently
   D. instantly

4. Refer to Exhibit 6.If People in the economy expect inflation to be 6 percent but inflation turn out to be 3 percent the economy is operating at point ?

   A. H
   B. c
   C. d
   D. F

5. Refer to Exhibit 6.If People in the economy expect inflation to be 3 percent and inflation is 3 percent the economy is operating at point ?

   A. b
   B. I
   C. a
   D. H

6. Refer to Exhibit 6.Suppose the economy is in long-run equilibrium at point E. A sudden increase in government spending should move the economy in the direction of point ?

   A. d
   B. G
   C. E
   D. b

7. Refer to Exhibit 6. Suppose the economy is Operating in long-run equilibrium at point E. An unexpected monetary contraction will move the economy in the direction of point ?

   A. H
   B. F
   C. E
   D. c

8. Suppose the economy is initially in long run equilibrium Then suppose there is a drought that destroys much of the wheat crop if policymakers allow the economy to adjust to long-run equilibrium on its own, according to the model to aggregate demand and aggregate supply what happens to prices and output in the long run ?

   A. Output rises; prices are unchanged from the initial value
   B. Output and the price level are unchanged from their initial values
   C. Output falls; prices are unchanged from the initial value
   D. Prices fall; output is unchanged from its initial value

9. An economy that trades with and has financial dealing with other countries is called a/an ________ economy?

   A. free-trade
   B. autarkic
   C. open
   D. mixed

10. The market power effect of an international joint venture can lead to welfare losses for the domestic economy unless offset by cost reductions. Which type of cost reduction would not lead to offsetting welfare gains for the overall economy ?

    A. R&D generating welfare improved technology
    B. development of more productive machinery
    C. new work rules promoting workers efficiency
    D. lower wages extracted from workers