macroeconomic issues and analysis MCQs – Page 2

Practise focused macroeconomic issues and analysis questions with marked answers for exam preparation and subject revision.

macroeconomic issues and analysis Mcqs

51. All of the following are benefits of the single market except ?
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A. it allows countries to exploit their comparative advantage, more fully

B. it intensified competition

C. firm could more readily exploit

D. economies of scal

E. it is easier to book holidays in member countries

52. In the EMU a countrys competitiveness can change because of ?
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A. interest rate adjustment

B. devaluation

C. domestic wage and price adjustment

D. central bank intervention in the Forex

53. The labour force can be defined as ?
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A. The population between school leaving age and retirement age.

B. anyone who is working or actively seeking work

C. Those who could claim benefit if they were to become unemployed.

D. Those of working age who are seeking work and are available to for work at current wage rates.

54. The single European Act committed ________ governments to a ________ in 1992?
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A. Western European, single market

B. European union, single market

C. Western European, single currency area

D. European Union, single currency area

55. In the short run the level of floating exchange rates is determined mainly by ?
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A. trade

B. speculation

C. competitiveness

D. interest rates

56. Government policies that focus on changing interest rates are called ?
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A. supply-side policies

B. fiscal policies

C. incomes policies

D. monetary policies

57. Cyclical unemployment is the ?
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A. Unemployment that occurs during recessions and depressions.

B. Unemployment that results when people become discouraged about their chances of finding a job so they stop looking for work.

C. Portion of unemployment that is due to the normal working of the labour market

D. Portion of unemployment that is due to changes in the structure of the economy that results in a significant loss of jobs in certain industries.

58. Government policies that focus on increasing production rather than demand are called ?
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A. fiscal policies

B. monetary policies

C. omes policies

D. supply-side policies

59. If the US economy is forecast to come out of recession because military expenditure has increase then the exchange value of the UK pound will tend to ?
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A. not be affected

B. fluctuate more than it would do therwise

C. depreciate

D. appreciate

60. Which of the following is macroeconomic issue ?
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A. The price of houses in karachi

B. The level of unemployment is pakistan

C. The wage rate for plumbers in Islamabad

D. Your decision to work or stay at home

61. Unemployment resulting from changes in the pattern of demand or supply in the economy is called _______ unemployment?
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A. structural

B. technological

C. demand-deficient

D. regional

62. Since 1998 many government have defined unemployment using ?
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A. the number out of work and claiming benefit

B. the percentage of the labour force not in work

C. a labour force survey.

D. the ILO/OECD standardised unemployment measurement

63. Which of the following is not involved with fiscal policy ?
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A. Income tax

B. National insurance

C. VAT

D. Interest insurance

64. The natural rate of unemployment is generally thought of as the ?
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A. ratio of the frictional unemployment rate to the cyclical unemployment rate.

B. Sum of frictional unemployment and cyclical unemployment

C. sum of frictional unemployment and structural unemployment.

D. Sum of structural unemployment and cyclical unemployment.

65. The percentage of the labour force that is unemployed is the ?
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A. Labour force rate.

B. Unemployment population ratio.

C. Unemployment rate

D. employment rate

66. Unemployment resulting from real wages being above their equilibrium level is called _________ unemployment?
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A. frictional

B. natural

C. disequilibrium

D. structural

67. Government policies that focus on changing taxes and government spending are called ?
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A. monetary policies

B. fiscal policies

C. incomes policies

D. supply-side policies

68. Which of the following is not a macroeconomic issue ?
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A. Inflation

B. Economic growth

C. The wages paid to footballers

D. Unemployment

69. Classifying discouraged workers as unemployed would ?
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A. decrease the unemployment rate

B. have an indeterminate impact on the unemployment rate

C. not change the unemployment rate

D. increase the unemployment rate

70. Which of the following is not likely to be government objective ?
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A. Increasing economic growth

B. Increasing the level of exports

C. Increasing government spending

D. Increasing employment

71. Aggregate demand is the total demand for all goods and services in an economy from ?
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A. all sectors of except the rest of the world

B. the household and government sectors

C. all sectors of the economy including the rest of the world.

D. the household sector.

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

B. free-trade

C. mixed

D. autarkic

73. Which of the following is a policy instrument as opposed to a government objective ?
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A. lower interest rates

B. Lower unemployment

C. Faster economic growth

D. A better balance of trade position

74. As prices rise, there will be costs of constantly changing price-tags and reprinting price-lists This is called ?
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A. cost-push inflation.

B. menu costs of inflation

C. real balance effect

D. money illusion.

75. If interest rates rise then costs are likely to _______ and demand is likely to _________?
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A. fall; rise

B. rise; rise

C. rise, fall

D. fall; fall

76. The record of countrys imports and exports of goods and services is called its ?
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A. balance of payments on current account

B. balance of payments.

C. balance of trade

D. visible trade balance

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