MCQs of Economics – Macroeconomic Issues and Analysis

Which of the following is macroeconomic issue?

What is meant by an objective?

Which of the following is not involved with fiscal policy?

Which does the government not control directly?

Which of the following is not a macroeconomic issue?

Which of the following can the government not use directly to control the economy?

Which of the following is a policy instrument as opposed to a government objective?

Which of the following is a possible government objective as opposed to a policy?

Which of the following is not likely to be government objective?

Reducing inflation is a more important objective than economic growth is an example of:

The percentage of the labour force that is unemployed is the:

The labour force can be defined as:

Since 1998 many government have defined unemployment using:

An individual who is not working and who has given up looking for work is classfied as:

Classifying discouraged workers as unemployed would:

Cyclical unemployment is the:

Aggregate demand is the total demand for all goods and services in an economy from:

Aggregate supply is the total amount:

Unemployment resulting from real wages being above their equilibrium level is called ____ unemployment.

Unemployment resulting from imperfect information in the labour market is called ____ unemployment.

Unemployment resulting from changes in the pattern of demand or supply in the economy is called ____ unemployment.

The demand for ice-cream is lower outside of summer causing lower demand for ice-cream salesman if they cannot find other work, this is called ____ unemployment.

The natural rate of unemployment is generally thought of as the:

As prices rise. People will want to keep more money as cash and in bank accounts This is called:

As prices rise, there will be costs of constantly changing price-tags and reprinting price-lists This is called

Government policies that focus on increasing production rather than demand are called:

Government policies that focus on changing taxes and government spending are called:

Government policies that focus on changing interest rates are called:

If interest rates rise then costs are likely to ___ and demand is likely to ______

If VAT rates rise, then costs are likely to ___ and demand is likely to _____

An economy that trades with and has financial dealing with other countries is called a/an ___ economy.

The record of country’s imports and exports of goods is called its:

The record of country’s imports and exports of goods and services is called its:

The record of a country’s imports and exports of of goods and services plus net investment incomes and current transfers of money to and from abroad, is called its:

The record of a county’s transfers of shareholding property and bank deposits to and from abroad is called its:

The record of country’s transfers of land inter-government payments and money sent by migrants to and from abroad is called its:

The situation when a country imports more than it exports is:

The price of one country’s currency in terms of another country’s currency is the:

If the exchange rate between the UK and Japan changes from £1 = 100 yen to £1 = 150 yen then ceteris paribus, the price of UK goods in Japan:

If a nation’s interest rates are relatively low compared to those of other countries. then the exchange value of its currency will tend to:

If the Pakistan receives larger than expected revenues from exports then the exchange value of its currency will tend to:

If the Pakistan takes part in a war in the Middle East, then the exchange value of its currency will tend to:

If currency dealers expect the value of the pound to fall, the exchange value will tend to:

If Pakistan’s incomes rise faster than those in most other countries the the exchange value will tend to:

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:

If a large car importer in the Pakistan wants to import many cars, then the exchange value of the Pak rupees will tend to:

If the economy is in the expansionary phase of the business cycle, aggregate demand ____ unemployment ____ inflation ____ payments is likely to move towards ____

If the economy is at the peak of the business cycle, aggregate demand ____ unemployment ___ inflation ____ and the current account of the balance of payments is likely to move towards ____

If the economy is in the recessionary phase of the business cycle, aggregate demand ___ unemployment ____ inflation ___ and the current account of the balance of payments is likely to move towards ____

If the economy is in the though phase of the business cycle, aggregate demand ____ unemployment ___ inflation ___ and the current account of the balance of payments is likely to move towards _____

If British residents want more French francs to purchase more French cloths other things equal, then the equilibrium value of the pound against the French franc will:

When the $/£ exchange rate rises the pound _____ and when the $/£ rates falls the pound ____

When a government follows a fixed exchanges ate regime it allows the exchange rate to be determined by market forces

In a fixed exchange rate regime, the central the exchange rate

A current account deficit means that a country may:

Under floating exchange rates a current account deficit must be exactly match by a capital account surplus

Starting from a position of internal and external balance a reduction in aggregate demand will cause a current account

A rise in the real exchange rate will ________ the competitiveness of the domestic economy

Within the circular flow of income, an increase in domestic income will tend to increase

perfect international capital mobility suggests that international funds will be responsive to ________ differentials

When capital mobility is perfect interest rate differentials will tend to be offset by:

The current account will differ from trade balance because of interest flow from foreign assets and debts

Which fixed exchange rates and no private capital flows, to correct a balance of payments deficit, the central bank will _______ and ________

With fixed exchange rates and no private currency flows, when the central bank buys domestic currency the domestic money supply is:

In the absence of international capital controls, central banks set ____ to provide the correct incentive for speculators

A fixed exchange rate, plus perfect capital mobility ____ the scope for monetary policy

The competitive advantage from a devaluation is likely to be offset by ____ and ________

Under floating exchange rates, monetary policy is a powerful tool

Under floating exchange rates, expectations of higher interest rates are likely to cause an ____ of the exchange rate

In the short run the level of floating exchange rates is determined mainly by:

If one country, with floating exchange rates, has higher inflation than its competitors we would expect its exchange rate to:

Floating exchange rates are ____ in the short run

Fixed exchange rates permit a country to have permanently higher inflation

Fiscal policy is weak under floating exchanges rates as fiscal expansion:

The main factor affecting the long run path of the UK nominal exchange rate is the growth of world trade

The main features of the European Monetary system are

In the ERM, each country fixed participant Collectively the group ____ against the rest of the world

International policy co-ordination allows policy-markers to commit to policies they would otherwise avoid

The single European Act committed ________ governments to a ________ in 1992

All of the following are benefits of the single market except

The Masstricht criteria for joining EMU is that a country must have a high growth rate

A monetary union means ________, ________ and ________

The Maastricht criteria for entry to the EMU are that applicants should have

The UK is a member of the EMU

In the EMU a country’s competitiveness can change because of: