Economics Mcqs

If workers and firms agree on an increase in wages based on their expectations of inflation and inflation turns out to be more than they expected ?

by
If workers and firms agree on an increase in wages based on their expectations of inflation and inflation turns out to be more than they expected ?

A. none of these answers
B. Workers will gain at the expense of firms
C. neither workers nor firms will gain because the increase in wages in fixed in the labor agreement
D. firms will gain at the expense of workers.

Under Which of the following conditions would you prefer to be the borrower ?

by
Under Which of the following conditions would you prefer to be the borrower ?

A. The nominal rate of interest is 12 percent and the inflation rate is 9 percent
B. The nominal rate of interest is 20 percent and the inflation rate is 25 percent
C. The nominal rate of interest is 5 percent and the inflation rate is 1 percent
D. The nominal rate of interest is 15 percent and the inflation rate is 14 percent

If there is an increase in the price of apples which causes consumers to purchase fewer kilograms of apples and more kilograms of oranges, the CPI will suffer from ?

by
If there is an increase in the price of apples which causes consumers to purchase fewer kilograms of apples and more kilograms of oranges, the CPI will suffer from ?

A. none of these answers
B. substitution bias
C. base year bias
D. bias due to unmeasured quality change
E. bias due to the introduction of new goods.

Which of the following would probably cause the CPI to rise more than the GDP deflator in the Pakistan ?

by
Which of the following would probably cause the CPI to rise more than the GDP deflator in the Pakistan ?

A. An increase in the price of BMWs produced in Germany and sold in the Pakistan
B. An increase in the price of Peugeots produced in the Pakistan
C. An increase in the price of helicopters purchased by the Pak Navy.
D. An increased in the Price of domestically produced armoured vehicles sold exclusively to Iran

The migrations of electricians from low-paying nations to high-paying nations is most likely to be challenged by ?

by
The migrations of electricians from low-paying nations to high-paying nations is most likely to be challenged by ?

A. electrician unions in the high-paying nations
B. electrician unions in the low paying nations
C. electrician employers in the high-paying nations
D. electricians who stay in the low paying nations

The migration of employable workers from low-paying nations to high-paying nations will ?

by
The migration of employable workers from low-paying nations to high-paying nations will ?

A. decrease wage rates in the low-paying nations
B. decrease productivity and real output in the world
C. increase business or capitalist incomes in the high-paying nations
D. increase business or capitalist incomes in the low-paying nations