Top 350+ Solved Micro economics 2 MCQ Questions Answer
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. The steepness of the IS curve depends on:
a. change in interest
b. Size of the multiplier
c. both
d. None
Q. When there is Zero or No capital mobility the BP curve is:
a. Negative
b. positive
c. Vertical
d. Horizontal
Q. When there is High capital mobility the BP curve is:
a. Negative
b. positive
c. Vertical
d. Horizontal
Q. Which policy is recommended under flexible exchange rate system:
a. No policy is needed
b. Contractionary policy
c. expansionary monetary policy
d. Any policy.
Q. Khan’s multiplier is known as:
a. investment multiplier
b. employment multiplier
c. Foreign trade multiplier
d. Saving multiplier
Q. Keynes’s multiplier is known as:
a. investment multiplier
b. employment multiplier
c. Foreign trade multiplier
d. Saving multiplier
Q. The foreign trade multiplier also known as the:
a. Acceleration
b. employment multiplier
c. Income multiplier
d. export multiplier .
Q. Investment Multiplier explains measures the change income as result of change in:
a. Saving
b. Wealth
c. Employment
d. Investment.
Q. Under perfectly competitive market an individual seller is a
a. Price taker
b. Price maker
c. Individual seller can influence the price
d. None of the above