Top 250+ Solved Business Economics MCQ Questions Answer
Q. Which of the following class will not be negatively affected by the higher inflation?
a. the consumer class
b. the debtor class
c. pensioner class
d. business class
Q. Which of the following is an effect of inflation?
a. erosion in purchasing power
b. affects relative price of goods
c. increase in inequalities of income
d. all the above
Q. The trough of a business cycle occurs when _____ hits its lowest point.
a. inflation
b. the money supply
c. aggregate economic activity
d. the unemployment rate
Q. . When aggregate economic activity is increasing, the economy is said to be in
a. an expansion.
b. a contraction.
c. a peak.
d. a turning point.
Q. In a boom:
a. unemployment is likely to fall
b. prices are likely to fall
c. demand is likely to fall
d. imports are likely to fall
Q. Peaks and troughs of the business cycle are known collectively as
a. volatility.
b. turning points.
c. equilibrium points.
d. real business cycle events.
Q. When aggregate economic activity is declining, the economy is said to be in
a. a contraction.
b. an expansion.
c. a trough.
d. a turning point.
Q. Industries that are extremely sensitive to the business cycle are the
a. durable goods and service sectors.
b. nondurable goods and service sectors.
c. capital goods and nondurable goods sectors.
d. capital goods and durable goods sectors.
Q. Economists use the term shocks to mean
a. unexpected government actions that affect the economy.
b. typically, unpredictable forces that have major impacts on the economy.
c. sudden rises in oil prices.
d. the business cycles.
Q. The government spending multiplier is as higher as:
a. higher is the government spending
b. higher is the mpc
c. lower is the mpc
d. lower is the tax revenue
Q. Point out which of the following is not an instrument of fiscal policy:
a. an increase in the interest rate
b. a cut in unemployment compensation
c. an increase in tobacco taxes
d. a cut in the marginal rates of irpf
Q. The function of investment spending shifts to the left if:
a. the interest rate rises
b. the interest rate falls
c. business expectations improve
d. business expectations get worse
Q. An increase in the interest rate1
a. shifts the aggregate demand curve to the left
b. shifts the aggregate demand curve to the right
c. has no effect
d. moves the economy along the aggregate demand curve
Q. As higher is the MPS
a. lower is the multiplier.
b. higher is the investment spending
c. higher is the equilibrium income.
d. all the answers are right
Q. To increase the money supply, the bank central could:
a. cut taxes
b. purchase bonds in the open-market
c. encourage people to held more cash (currency in circulation)
d. increase the government spending