Business Economics

321. Automatic stabilizers drive changes in

  1. The total deficit
  2. The cyclical deficit
  3. The structural deficit
  4. Monetary policy
Correct answer: (B)
The cyclical deficit

322. Feudalistic economy is dominated by

  1. Entrepreneur
  2. Worker
  3. Landlord
  4. None of these
Correct answer: (C)
Landlord

323. Marginal utility curve of a given consumer is also his:

  1. Indifference curve
  2. Total utility curve
  3. Demand curve
  4. Supply curve
Correct answer: (C)
Demand curve

324. The real business cycle theory is most closely related to

  1. Keynesian theory
  2. Monetarist theory
  3. The classical theory
  4. The new Keynesian theory
Correct answer: (C)
The classical theory

325. In the new Keynesian models,

  1. Imperfect competition comes is the result of optimizing behavior by individuals
  2. Perfect competition is assumed with respect to the product market
  3. A natural monopoly is presumed for the product market
  4. Both a and c
  5. None of the above
Correct answer: (A)
Imperfect competition comes is the result of optimizing behavior by individuals

326. New Keynesian economists/p>

  1. Believe that the deviations of output below potential output during recessions are socially costly
  2. Presume that much unemployment is involuntary
  3. Attempt to improve the microeconomic foundations of the traditional Keynesian models not challenge their major premises
  4. Both a and c
  5. All of the above
Correct answer: (E)
All of the above

327. According to the real business cycle theory business cycles

  1. Can be eliminated with appropriate monetary and fiscal policy
  2. Are natural and efficient reactions to changes in productivity
  3. Do not occur
  4. Occur infrequently
  5. None of the above
Correct answer: (B)
Are natural and efficient reactions to changes in productivity

328. If the tax function is T= t0+t1y where t1 equals 1/3, and if the marginal propensity to consume out of disposable income is 3/4, then the change in GDP oer unit change into t0 (ΔY/Δ t0) will be

  1. -1
  2. +1
  3. -1.5
  4. -2
  5. +1.5
Correct answer: (C)
-1.5
Page 33 of 33