Top 150+ Solved Managerial Economics MCQ Questions Answer
Q. The real business cycle theory and the new classical theory agree that
a. Business cycles are driven by changes in Aggregate demand
b. Expectations are formed rationally
c. Imperfect information plays a big role in business cycles
d. None of the above
Q. Advocates of real business cycle theories argue that all of the following could cause a recession except
a. A fall in consumer expectations
b. Natural disasters
c. Higher taxation
d. Increase in the price of oil
Q. Real business cycle and new Keynesian models disagree upon
a. Whether people form their expectations rationally
b. Whether changes in unemployment are voluntary or involuntary
c. Whether individuals engage in optimizing behavior at all times
d. Whether changes in the money supply affect output in the long-run
Q. In the real business cycle theory during a period when output is falling
a. Workers are voluntary giving up their jobs
b. The quantity supplied of labor is falling
c. All of the above
d. None of the above
Q. According to the real business cycle theory business cycles
a. Can be eliminated with appropriate monetary and fiscal policy
b. Are natural and efficient reactions to changes in productivity
c. Do not occur
d. Occur infrequently
Q. According to real business cycle theory an increase in taxes
a. Would significantly reduce labor supply, increase employment, and decrease output
b. A decline in employment but not in output
c. Would significantly reduce labor supply, decrease employment, and decrease output
d. No change in output and employment
Q. Many economists who accept the real business cycle explanations of economic fluctuations
a. Believe that the Sharpe rise in the relative price of imported oil was the central cause of the deep recession in the United States in the mid-1970s
b. Believe that the restrictive Federal reserve Monetary policy was the central cause of the deep recession in the United States in the mid-1970s
c. Believe that the Sharpe rise in the relative price of imported oil was not the main cause of the deep recession in the United States in the mid-1970s
d. Both a and c
Q. New Keynesian theories of efficiency wages imply
a. Voluntary unemployment
b. Real wage rigidity
c. Changes in unemployment represent changes in the natural rate of unemployment
d. None of the above
Q. The five year plan in India are launched after the approval of
a. The President and Prime Minister
b. The Rajya Sabha
c. The National Development Council (NDC)
d. The Lok Sabha
Q. Harrod-Domar model was formed the basis of which plan
a. First plan
b. Third plan
c. Second plan
d. None of the above
Q. Deductive method
a. Moves from general to particular
b. Moves from particular to general
c. Is based on hypothesis
d. Both a and b
Q. When average product is falling, it is
a. Less than the marginal product
b. Not measurable in this case
c. Greater than the marginal product
d. Equal to the marginal product