Okun’s law shows the relationship between the following : (a) Unemployment and Growth (b) Employment and Growth (c) Tax rate and Tax revenue (d) Inflation and Employment

Okun’s law shows the relationship between the following :
(a) Unemployment and Growth
(b) Employment and Growth
(c) Tax rate and Tax revenue
(d) Inflation and Employment
by

1 Answer

Answer :

(a) Unemployment and Growth
by

Related questions

Which curve shows the inverse relationship between unemployment and inflation rates? (1) Supply curve (2) Indifference curve (3) IS curve (4) Phillips curve

Description : Which curve shows the inverse relationship between unemployment and inflation rates? (1) Supply curve (2) Indifference curve (3) IS curve (4) Phillips curve

Last Answer : (4) Phillips curve Explanation: The Phillips curve shows the inverse relationship between inflation and unemployment: as unemployment decreases, inflation increases. The relationship, however, is not linear. Graphically, ... unemployment rate is on the x-axis and the inflation rate is on the y-axis.

Which curve shows the inverse relationship between unemployment and inflation rates ? (1) Supply curve (2) Indifference curve (3) IS curve (4) Phillips curve

Description : Which curve shows the inverse relationship between unemployment and inflation rates ? (1) Supply curve (2) Indifference curve (3) IS curve (4) Phillips curve

Last Answer :  Phillips curve 

Stagflation refers to a situation which is characterized by - (1) stagnant employment and deflation (2) deflation and rising unemployment (3) inflation and rising employment. (4) inflation and rising unemployment

Description : Stagflation refers to a situation which is characterized by - (1) stagnant employment and deflation (2) deflation and rising unemployment (3) inflation and rising employment. (4) inflation and rising unemployment

Last Answer : (4) inflation and rising unemployment Explanation: Stagflation describes a situation where an inflation rate is high, the economic growth rate slows down, and unemployment remains steadily high ... economic policy since actions designed to lower inflation may exacerbate unemployment, and vice versa.

Stagflation refers to a situation which is characterised by (1) stagnant employment and deflation (2) deflation and rising unemployment (3) inflation and rising employment. (4) inflation and rising unemployment

Description : Stagflation refers to a situation which is characterised by (1) stagnant employment and deflation (2) deflation and rising unemployment (3) inflation and rising employment. (4) inflation and rising unemployment

Last Answer : inflation and rising unemployment

Lorenz curve shows - (1) Inflation (2) Unemployment (3) Income distribution (4) Poverty

Description : Lorenz curve shows - (1) Inflation (2) Unemployment (3) Income distribution (4) Poverty

Last Answer : (3) Income distribution Explanation: In economics, the Lorenz curve is a graphical representation of the distribution of income or of wealth. It was developed by Max O. Lorenz in 1905 for ... of wealth distribution; the Lorenz curve lies beneath it, showing the reality of wealth distribution.

Lorenz curve shows (1) Inflation (2) Unemployment (3) Income distribution (4) Poverty

Description : Lorenz curve shows (1) Inflation (2) Unemployment (3) Income distribution (4) Poverty

Last Answer : Income distribution

Countries that depend mainly on the export of primary products for their income, are prone to - (1) inflation (2) economic instability (3) increasing unemployment (4) stable economic growth

Description : Countries that depend mainly on the export of primary products for their income, are prone to - (1) inflation (2) economic instability (3) increasing unemployment (4) stable economic growth

Last Answer : (3) increasing unemployment Explanation: Most of the world's poorest countries depend for increasing export earnings on agricultural products that are vulnerable to fluctuating or declining terms of ... primary products were hit particularly hard by falling commodity prices between 1980 and 1984.

Countries that depend mainly on the export of primary products for their income, are prone to (1) inflation (2) economic instability (3) increasing unemployment (4) stable economic growth

Description : Countries that depend mainly on the export of primary products for their income, are prone to (1) inflation (2) economic instability (3) increasing unemployment (4) stable economic growth

Last Answer :  increasing unemployment

7. Which of the following statements is/are true? a. Business Investment Spending occurs when individuals buy stock in the stock market b. Productivity is the United States grew very slowly between 1973 and 1996 c. Because of discouraged workers, the official unemployment rate is too high d. “Full employment” occurs when there is no frictional unemployment

Description : 7. Which of the following statements is/are true? a. Business Investment Spending occurs when individuals buy stock in the stock market b. Productivity is the United States grew very slowly ... unemployment rate is too high d. Full employment occurs when there is no frictional unemployment

Last Answer : b. Productivity is the United States grew very slowly between 1973 and 1996

The major objective of monetary policy is to - (1) increase government's tax revenue (2) revamp the Public Distribution System (3) Promote economic growth with price stability (4) weed out corruption in the economy

Description : The major objective of monetary policy is to - (1) increase government's tax revenue (2) revamp the Public Distribution System (3) Promote economic growth with price stability (4) weed out corruption in the economy

Last Answer : (3) Promote economic growth with price stability Explanation: The main objective of monetary policy is to control the supply of money, often targeting an inflation rate or interest rate ... usually to contribute to lower unemployment, and to maintain predictable exchange rates with other currencies.

The major objective of monetary policy is to (1) increase government’s tax revenue (2) revamp the Public Distribution System (3) Promote economic growth with price stability (4) weed out corruption in the economy

Description : The major objective of monetary policy is to (1) increase government’s tax revenue (2) revamp the Public Distribution System (3) Promote economic growth with price stability (4) weed out corruption in the economy 

Last Answer : Promote economic growth with price stability

The Philips curve shows that (a) High unemployment rates are associated with low increases in money wage rates (b) Low unemployment rates are associated with low rates of inflation (c) High unemployment rates are associated with low rates of inflation (d) High inflation rates are associated with small increases in money wage rates.

Description : The Philips curve shows that (a) High unemployment rates are associated with low increases in money wage rates (b) Low unemployment rates are associated with low rates of inflation (c) High ... rates of inflation (d) High inflation rates are associated with small increases in money wage rates.

Last Answer : (c) High unemployment rates are associated with low rates of inflation  

The balance of payments equals (a) The difference between household spending over earnings (b) The difference between government expenditure over its income © A measure of the value of economic transactions between residents of a country and rest of the world (d) The difference between inflation and unemployment.

Description : The balance of payments equals (a) The difference between household spending over earnings (b) The difference between government expenditure over its income © A measure of the value of economic ... a country and rest of the world (d) The difference between inflation and unemployment.

Last Answer : © A measure of the value of economic transactions between residents of a country and rest of the world

The function of a government by which it seeks to seek a balance of employment, demand-supply, and inflation, is known as: a) Distribution function b) Allocation function c) Stabilization d) Protection

Description : The function of a government by which it seeks to seek a balance of employment, demand-supply, and inflation, is known as: a) Distribution function b) Allocation function c) Stabilization d) Protection

Last Answer : c) Stabilization

)A very high rise in National Income at current market prices and a low rise at constant prices reveals - (1) the high rate of growth in the economy at the current period (2) the increased production in the current period (3) the improper growth of the economy (4) the high rate of inflation prevailing in the economy

Description : )A very high rise in National Income at current market prices and a low rise at constant prices reveals - (1) the high rate of growth in the economy at the current period (2) the increased ... period (3) the improper growth of the economy (4) the high rate of inflation prevailing in the economy

Last Answer : (3) the improper growth of the economy Explanation: When national output is multiplied by present ruling price, we obtain national income at current prices. On the other hand if the national output is ... not indicate increase in product or output, but is rather due to the rise in price level.

A very high rise in National Income at current market prices and a low rise at constant prices reveals (1) the high rate of growth in the economy at the current period (2) the increased production in the current period (3) the improper growth of the economy (4) the high rate of inflation prevailing in the economy

Description : A very high rise in National Income at current market prices and a low rise at constant prices reveals (1) the high rate of growth in the economy at the current period (2) the increased production ... (3) the improper growth of the economy (4) the high rate of inflation prevailing in the economy 

Last Answer :  the high rate of inflation prevailing in the economy

Macroeconomics is the study of (a) Inflation ; (b) Unemployment ; (c) Growth ; (d) All of (a), (b) and (c) above.

Description : Macroeconomics is the study of (a) Inflation ; (b) Unemployment ; (c) Growth ; (d) All of (a), (b) and (c) above.

Last Answer : ; (d) All of (a), (b) and (c) above.

What is the effect of inflation on tax revenue results in a situation? -Do You Know?

Description : What is the effect of inflation on tax revenue results in a situation? -Do You Know?

Last Answer : answer:

1. In respect of which states has Union Parliament power to legislate on the subjects of all three lists? 2. What is the most soluble in water? 3. What is the effect of inflation on tax revenue results in a situation? 4. Which country is included in the North-West Pacific fishing grounds? 5. Who presided over the Buddhist Council held during the reign of Kanishka at Kashmir?

Description : 1. In respect of which states has Union Parliament power to legislate on the subjects of all three lists? 2. What is the most soluble in water? 3. What is the effect of inflation on tax revenue ... occurs in entropy? 19. Where is Peaty soil found? 20. Which were the contemporaries of Kanishka ?

Last Answer : Answer : 1. Union Territories 2. Sugar 3. Fiscal drag 4. Japan 5. Vasumitra 6. Isotope Technology 7. Second incisor 8. The State Legislature 9. Approximately 3200000 sq. km 10. Desire to ... Parushni (Ravi) 16. Increase 17. Union List 18. Increases 19. Kerala 20. Nagarjuna, Asvaqhosha, Vasumitra

The effective rate of protection (a). distinguishes between tariffs that are effective and those that are ineffective (b). is the minimum level at which a tariff becomes effective in limiting imports (c). shows how effective a tariff is in raising revenue for the government (d). shows the increase in value added for domestic production that a particular tariff structure makes possible, in percentage terms

Description : The effective rate of protection (a). distinguishes between tariffs that are effective and those that are ineffective (b). is the minimum level at which a tariff becomes effective in ... in value added for domestic production that a particular tariff structure makes possible, in percentage terms

Last Answer : d). shows the increase in value added for domestic production that a particular tariff structure makes possible, in percentage terms

Full employment is a situation where - (1) there is no involuntary unemployment (2) there is involuntary unemployment (3) there is no voluntary unemployment (4) there is voluntary unemployment

Description : Full employment is a situation where - (1) there is no involuntary unemployment (2) there is involuntary unemployment (3) there is no voluntary unemployment (4) there is voluntary unemployment

Last Answer : (2) there is involuntary unemployment Explanation: Full employment refers to a situation in which every able bodied person who is willing to work at the prevailing rate of wages is, in fact, employed. It ... which occurs when those who are willing to work at the going wage rate do not get work.

Full employment is a situation where (1) there is no involuntary unemployment (2) there is involuntary unemployment (3) there is no voluntary unemployment (4) there is voluntary unemployment

Description : Full employment is a situation where (1) there is no involuntary unemployment (2) there is involuntary unemployment (3) there is no voluntary unemployment (4) there is voluntary unemployment

Last Answer : there is involuntary unemployment

Laffer curve is related to (a) Tax rate and tax revenue. (b) Aggregate tax and aggregate non-tax revenue. (c) Total tax burden and total payment burden. (d) Total income and total expenditure.

Description : Laffer curve is related to (a) Tax rate and tax revenue. (b) Aggregate tax and aggregate non-tax revenue. (c) Total tax burden and total payment burden. (d) Total income and total expenditure.

Last Answer : (c) Total tax burden and total payment burden.

The external environment factor that includes: Factors that have a less immediate effect on a business such as the nation's rate of inflation or recession, unemployment rate, or standard of living, is (a) Political factors ; (b) Sociological factors ; (c) Indirect economic factors ; (d) Direct economic factors

Description : The external environment factor that includes: Factors that have a less immediate effect on a business such as the nation's rate of inflation or recession, unemployment rate, or standard of living, is ... ; (b) Sociological factors ; (c) Indirect economic factors ; (d) Direct economic factors

Last Answer : ; (c) Indirect economic factors ;

During periods of inflation, tax rates should - (1) increase (2) decrease (3) remain constant (4) fluctuate

Description : During periods of inflation, tax rates should - (1) increase (2) decrease (3) remain constant (4) fluctuate

Last Answer : (1) increase Explanation: In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. In other words, inflation means continuously ... To control inflation there should be an increase in the tax rate and increase in the interest rate.

Under progressive taxation, the real value of tax on a given level of real income : (a) decreases under inflation (b) rises under depression (c) rises under inflation (d) remains unchanged under inflation

Description : Under progressive taxation, the real value of tax on a given level of real income : (a) decreases under inflation (b) rises under depression (c) rises under inflation (d) remains unchanged under inflation

Last Answer : (c) rises under inflation

During periods of inflation, tax rates should (1) increase (2) decrease (3) remain constant (4) fluctuate

Description : During periods of inflation, tax rates should (1) increase (2) decrease (3) remain constant (4) fluctuate

Last Answer : increase

Which of the following best indicates economic growth of a Nation? (1) Agriculture income (2) Per capita income (3) Gross industrial production (4) Inflation

Description : Which of the following best indicates economic growth of a Nation? (1) Agriculture income (2) Per capita income (3) Gross industrial production (4) Inflation

Last Answer : (2) Per capita income Explanation: Some economists believe that economic growth is meaningless if it is not distributed across different segments of population. So per capita income is considered by ... Gross Domestic Product (GDP) is the most comprehensive measure of over-all economic performance.

State which of the following is correct? The Consumer Price Index reflects - (1) the standard of living (2) the extent of inflation in the prices of consumer goods (3) the increasing per capita income (4) the growth of the economy

Description : State which of the following is correct? The Consumer Price Index reflects - (1) the standard of living (2) the extent of inflation in the prices of consumer goods (3) the increasing per capita income (4) the growth of the economy

Last Answer : (2) the extent of inflation in the prices of consumer goods Explanation: A consumer price index (CPI) measures changes in the price level of consumer goods and services purchased by households ... , pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values.

State which of the following is correct ? The Consumer Price Index reflects : (1) the standard of living (2) the extent of inflation in the prices of consumer goods (3) the increasing per capita income (4) the growth of the economy

Description : State which of the following is correct ? The Consumer Price Index reflects : (1) the standard of living (2) the extent of inflation in the prices of consumer goods (3) the increasing per capita income (4) the growth of the economy

Last Answer : the extent of inflation in the prices of consumer goods

Which of the following best indicates economic growth of a Nation? (1) Agriculture income (2) Per capita income (3) Gross industrial production (4) Inflation

Description : Which of the following best indicates economic growth of a Nation? (1) Agriculture income (2) Per capita income (3) Gross industrial production (4) Inflation

Last Answer : Per capita income

Full employment is the level at which there is A. Zero unemployment B. Normal rate of unemployment C. Less supply of labor D. Demand for goods is less than supply.

Description : Full employment is the level at which there is A. Zero unemployment B. Normal rate of unemployment C. Less supply of labor D. Demand for goods is less than supply.

Last Answer : C. Less supply of labor

Which of these measures would not reduce natural rate of unemployment? (a) Creation of more jobs ; (b) Reducing the age of superannuation (c) Hike in unemployment allowance ; (d) Employment oriented education system

Description : Which of these measures would not reduce natural rate of unemployment? (a) Creation of more jobs ; (b) Reducing the age of superannuation (c) Hike in unemployment allowance ; (d) Employment oriented education system

Last Answer : (c) Hike in unemployment allowance ;

Full employment exists when there is (a) Zero unemployment ; (b) Natural rate of unemployment ; (c) Least demand for labor (d) Least supply of labor

Description : Full employment exists when there is (a) Zero unemployment ; (b) Natural rate of unemployment ; (c) Least demand for labor (d) Least supply of labor

Last Answer : (b) Natural rate of unemployment

Full employment is the level at which there is (a) Zero unemployment ; (b) Normal rate of unemployment; (c) Lease supply of labor ; (d) Demand for goods is less than supply.

Description : Full employment is the level at which there is (a) Zero unemployment ; (b) Normal rate of unemployment; (c) Lease supply of labor ; (d) Demand for goods is less than supply.

Last Answer : (c) Lease supply of labor ;

Investment multiplier shows the effect of investment on - (1) Employment (2) Savings (3) Income (4) Consumption

Description : Investment multiplier shows the effect of investment on - (1) Employment (2) Savings (3) Income (4) Consumption

Last Answer : (3) Income Explanation: Investment multiplier is simply the multiplier effect of an injection of investment into an economy. The multiplier effect refers to the idea that an initial spending rise can lead to even greater increase in national income

Investment multiplier shows the effect of investment on (1) Employment(2) Savings (3) Income (4) Consumption

Description : Investment multiplier shows the effect of investment on (1) Employment(2) Savings (3) Income (4) Consumption

Last Answer : Income

Pick out the wrong statement. (A) Gross revenue is that total amount of capital received as a result of the sale of goods or service (B) Net revenue is the total profit remaining after deducting all costs excluding taxes (C) The ratio of immediately available cash to the total current liabilities is known as the cash ratio (D) Consolidated income statement based on a given time period indicates surplus capital and shows the relationship among total income, costs & profit over the time interval

Description : Pick out the wrong statement. (A) Gross revenue is that total amount of capital received as a result of the sale of goods or service (B) Net revenue is the total profit remaining ... indicates surplus capital and shows the relationship among total income, costs & profit over the time interval

Last Answer : (C) Working capital turnover ratio = sales/net working capital

Which leaverage shows the relationship between the revenue in the account of sales and the taxable income A. Financial B. Operating C. Combined

Description : Which leaverage shows the relationship between the revenue in the account of sales and the taxable income A. Financial B. Operating C. Combined

Last Answer : Answer: C

The relationship between elasticity of demand (e), Average Revenue (AR) and Marginal Revenue (MR) is shown by which of the following formula ? (a) e = MR / (AR – MR) (b) e = AR/MR (c) e = MR/AR (d) e = AR / (AR – MR)

Description : The relationship between elasticity of demand (e), Average Revenue (AR) and Marginal Revenue (MR) is shown by which of the following formula ? (a) e = MR / (AR – MR) (b) e = AR/MR (c) e = MR/AR (d) e = AR / (AR – MR)

Last Answer : (d) e = AR / (AR – MR)

Buoyancy of a tax is defined as - (1) percentage increase in tax revenue/ percentage increase in tax base (2) increase in tax revenue/ percentage increase in tax coverage (3) increase in tax revenue/increase in tax base (4) percentage increase in tax revenue/ increase in tax coverage

Description : Buoyancy of a tax is defined as - (1) percentage increase in tax revenue/ percentage increase in tax base (2) increase in tax revenue/ percentage increase in tax coverage (3) increase in tax revenue/increase in tax base (4) percentage increase in tax revenue/ increase in tax coverage

Last Answer : (3) increase in tax revenue/increase in tax base Explanation: Buoyancy means the growth/increase in tax collections. This is in line with the GDP growth within the economy, the industry profile and the tax ... rate and in the tax base in relation to the GDP is termed the buoyancy of the tax system.

The difference between the GNP and the NNP is equal to the - (1) consumer expenditure on durable goods (2) direct tax revenue (3) indirect tax revenue (4) capital depreciation

Description : The difference between the GNP and the NNP is equal to the - (1) consumer expenditure on durable goods (2) direct tax revenue (3) indirect tax revenue (4) capital depreciation

Last Answer : (4) capital depreciation Explanation: Depreciation refers to two very different but related concepts: the decrease in value of assets (fair value depreciation), and the allocation of the cost of ... equal to capital depreciation. It is the wearing out, breaking down, or technological obsolescence.

Which one of the following taxes is collected and utilized by the State Governments? (1) Personal income tax (2) Corporation tax (3) Land revenue (4) Custom duties

Description : Which one of the following taxes is collected and utilized by the State Governments? (1) Personal income tax (2) Corporation tax (3) Land revenue (4) Custom duties

Last Answer : (3) Land revenue Explanation: The Constitution allocates the taxation of agricultural income to states. Lan revenue is a major source of revenue for states in India. For purpose of ... Commissioner, also known as Collector indicating his responsibility for the realization of all Government revenues.

Agricultural income tax is a source of revenue to - (1) Central Government (2) State Government (3) Local Administration (4) Centre and State Governments

Description : Agricultural income tax is a source of revenue to - (1) Central Government (2) State Government (3) Local Administration (4) Centre and State Governments

Last Answer : (2) State Government Explanation: The Constitution of India allocates the taxation of agricultural income to states. Land revenue is a major source of revenue for states in India

Which one of the following is not included in current revenue of the Union Government? (1) Tax revenue (2) Non-tax revenue (3) Loans (4) interest payments

Description : Which one of the following is not included in current revenue of the Union Government? (1) Tax revenue (2) Non-tax revenue (3) Loans (4) interest payments

Last Answer : (3) Loans Explanation: Loans are not included in the current revenue of the Union Government.

The tax levied on gross sales revenue from business transactions is called - (1) Turnover Tax (2) Sales Tax (3) Capital Gains Tax (4) Corporation Tax

Description : The tax levied on gross sales revenue from business transactions is called - (1) Turnover Tax (2) Sales Tax (3) Capital Gains Tax (4) Corporation Tax

Last Answer : (1) Turnover Tax Explanation: A turnover tax is similar to a sales tax or a VAT, with the difference that it taxes intermediate and possibly capital goods. It is charged on gross ... turnover tax is levied on all intermediate transactions between businesses leading to and including the final sale.

The duties levied on alcoholic liquors, narcotic drugs and opium come under— (1) Central Excise Duty (2) Land Revenue (3) State Excise Duty (4) General Sales Tax

Description : The duties levied on alcoholic liquors, narcotic drugs and opium come under— (1) Central Excise Duty (2) Land Revenue (3) State Excise Duty (4) General Sales Tax

Last Answer : (3) State Excise Duty Explanation: An excise or excise tax (sometimes called an excise duty) is a type of tax charged on goods produced within the country (as opposed to customs ... paper, drugs and pharmaceuticals, alcoholic liquor, water filtration and purification devices, pan masala, etc.

If the main objective of the government is to raise revenue, it should tax commodities with (1) high elasticity of demand (2) low elasticity of supply (3) low elasticity of demand (4) high income elasticity of demand

Description : If the main objective of the government is to raise revenue, it should tax commodities with (1) high elasticity of demand (2) low elasticity of supply (3) low elasticity of demand (4) high income elasticity of demand

Last Answer : (3) low elasticity of demand Explanation: The Ramsey rule states that commodities with low elasticities of demand should be taxed at higher rates than commodities with high elasticities of demand. ... the Ramsey rule may result in a regressive taxation scheme society may view as inequitable.

1. The largest source of tax revenue for the federal government is: a. the personal income taxb. the social security taxc. the property taxd. the sales tax

Description : 1. The largest source of tax revenue for the federal government is: a. the personal income tax b. the social security tax c. the property tax d. the sales tax

Last Answer : a. the personal income tax

The duties levied on alcoholic liquors, narcotic drugs and opium come under— (1) Central Excise Duty (2) Land Revenue (3) State Excise Duty (4) General Sales Tax

Description : The duties levied on alcoholic liquors, narcotic drugs and opium come under— (1) Central Excise Duty (2) Land Revenue (3) State Excise Duty (4) General Sales Tax

Last Answer :  Central Excise Duty