Top 350+ Solved Micro economics 2 MCQ Questions Answer
Q. Fiscal Policy is a policy of the
a. Central bank
b. Government
c. Finance commission
d. Finance minister
Q. The objective of Monetary Policy is :
a. to print notes of desired denominations
b. to control cost and supply of money
c. to provide loan to government
d. none of these
Q. Fiscal Policy refers to policy towards:
a. Public revenue
b. public expenditure
c. public debt
d. all of the above
Q. In a closed economy which of the following is not a macroeconomic objective?
a. National income growth
b. price level stability
c. BOP stability
d. employment
Q. The percentage of deposits of commercial banks statutorily kept with the RBI is :
a. Cash Reserve Ratio
b. Statutory Liquidity Ratio
c. Repo Rate
d. None of these
Q. Peak is the --- turning point of the business cycle.
a. Upper turning point
b. Lower turning point
c. Middle turning point
d. None of these
Q. Wage control is an instrument of ---- policy
a. Fiscal policy
b. Monetary policy
c. Incomes policy
d. None of these
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. The lowest point in the business cycle is referred to as the:
a. Expansion.
b. Boom.
c. Trough.
d. Peak.
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. 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. 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 cycle.
Q. Wars, new inventions, harvest failures, and changes in government policy are examplesof:
a. the business cycle.
b. economic models.
c. shocks.
d. opportunity costs.