Description : Depression is characterized by a. unprecedented level of underemployment b. Drastic fall in income c. Drastic fall in output and employment d. All the above
Last Answer : d. All the above Depression is one of the business cycles. Boom, recession, depression and recovery are the phases of a business cycle.
Description : The period in the business cycle in which there is extremely high unemployment, low wages, minimum total disposable income, and a lack of confidence in the economy by consumers is ? 1. recovery 2. prosperity 3. depression 4. recession 5. growth
Last Answer : depression
Description : The period in the business cycle in which there is extremely high unemployment, low wages, minimum total disposable income, and a lack of confidence in the economy by consumers is: A)recovery B)prosperity C)depression D)recession E)growth
Last Answer : C)depression
Description : A period of expansion of business activity is called 1. depression 2. recession 3. slump 4. boom 5. None of these
Last Answer : boom
Description : Acording to Keynesian theory of income determination, at full employment, a fall in aggregate demand causes - (1) a fall in prices of output and resources (2) a fall in real gross National product ... a rise in real gross National product and investment (4) a rise in prices of output and resources
Last Answer : (1) a fall in prices of output and resources Explanation: In 1936, John Maynard Keynes published the book "The General Theory of Employment, Interest and Money to explain the prolonged and ... at a below-full-employment equilibrium. Suppose that the economy is at the full-employment equilibrium.
Description : According to Keynesian theory of income determination, at full employment, a fall in aggregate demand causes (1) a fall in prices of output and resources (2) a fall in real gross National product and ... rise in real gross National product and investment (4) a rise in prices of output and resources
Last Answer : a fall in prices of output and resources
Description : f the Kellogg Company decides to build a new cereal plant because it anticipates the next five years will bring low unemployment and increases in buying power, it is forecasting a period of: A)depression B)prosperity C)recovery D)austerity E)recession
Last Answer : B)prosperity
Description : Stagflation is a situation of - (1) stagnation and deflation (2) stagnation and recession (3) stagnation and inflation (4) stagnation and recovery
Last Answer : (3) stagnation and inflation Explanation: Stagflation is a situation of stagnation in which the inflation rate is high, the economic growth rate slows down, and unemployment remains steadily high. Stagflation occurs ... t growing but prices are, which is not a good situation for a country to be in
Description : 8. Immediately after a trough, we would expect to have a/an a. peak b. recession c. recovery
Last Answer : c. recovery
Description : Stagflation is a situation of (1) stagnation and deflation (2) stagnation and recession (3) stagnation and inflation (4) stagnation and recovery
Last Answer : stagnation and inflation
Description : Surplus budget is recommended during (1) Boom (2) Depression (3) Famines (4) War
Last Answer : (2) Depression Explanation: Surplus budget is a budget in which government receipts arc greater than government expenditures. Such a budget is desired when the economy is battling inflation due to excess ... (i) rise in revenue collection by the government and (ii) fall in government expenditure.
Description : Surplus budget is recommended during : (1) Boom (2) Depression (3) Famines (4) War
Last Answer : Depression
Description : Why would you call this a recession/depression?
Last Answer : We are not currently in a recession, but we will likely soon be if we don’t regain some faith in the market.
Description : Consumptions function refers to - (1) relationship between income and employment (2) relationship between savings and investment (3) relationship between input and output (4) relationship between income and consumption
Last Answer : (4) relationship between income and consumption Explanation: The Consumption function is a single mathematical function used to express consumer spending. It was developed by John Maynard Keynes and ... by current income and induced consumption that is influenced by the economy's income level.
Description : Which of the following statement is inconsistent with Say's Law (a) The economy has flexible wages and prices. (b) The economy's level of investment solely depends on the level of income. © The ... produce at full employment level of output. (d) The economy has an environment of laissez faire .
Last Answer : (b) The economy’s level of investment solely depends on the level of income.
Description : Consumptions function refers to (1) relationship between income and employment (2) relationship between savings and investment (3) relationship between input and output (4) relationship between income and consumption
Last Answer : relationship between income and consumption
Description : A period during which trade expands, then slows down and then expands again is called 1. Business Recession 2. Boom 3. Slump 4. Trade Cycle 5. None of these
Last Answer : Trade Cycle
Description : Match List-I (Type of Unemployment) with List-II (Characteristics) and select the correct answer using the codes given below: L ist-I L ist -I I (Type of (Char acter ist ics) Unem ... contribution by the additional labour is nil E. Cyclical V. Job opportunities during certain months in the year
Last Answer : (1) A-V, B-III, C-IV, D-II, E-I
Description : In a boom (a) Unemployment is likely to fall. (b) Prices are likely to fall © Demand is likely to fall
Last Answer : (a) Unemployment is likely to fall.
Description : Which of the following denotes business activity at high level with increasing output and income a. Boom b. Recession c. Depression d. Recovery
Last Answer : a. Boom Boom, recession, depression and recovery are the phases of a business cycle
Description : The basic object of all production is to (1) satisfy human wants (2) provide employment (3) make profits (4) increase physical output
Last Answer : (1) satisfy human wants Explanation: According to Adam Smith, consumption is the sole end and purpose of all production. The goal of production is the satisfaction of human desire. All the processes, by which human labor creates goods and services, bring them to the ultimate consumer.
Description : The idea that government's fiscal policy can be used to stabilize the level of output and employment can be attributed to which of the following economists: a) Frederich Hayek b) Ludwig von Mises c) Frederic Bastiat d) John Maynard Keynes
Last Answer : d) John Maynard Keynes John Maynard Keynes's 1936 book, 'The General Theory of Employment, Interest, and Money' laid the foundations for Macroeconomics
Last Answer : satisfy human wants
Description : What is the difference between a recession and a depression, and does the former necessarily have to preceed the latter?
Last Answer : Go ask your father and mother.
Description : In these trying times of recession, repression, depression, is there one luxury that you refuse to give up?
Last Answer : HDTV and Internet connection. I must ask-public and watch Lost in HD!
Description : What significant event occurred in 2008 and became the catalyst for what is considered the worst recession in the U.S. and throughout the world since the Great Depression?
Last Answer : The decline of the housing market
Description : HDI is an aggregate measure of progress in which of the three dimensions? (1) Health, Education, Income (2) Food Security, Employment, Income (3) Agriculture, Industry, Services (4) Height, Weight, Colour
Last Answer : (1) Health, Education, Income Explanation: The Human Development Index (HDI) is an aggregate measure of progress in three dimensions-health, education and income which are used to rank ... FIDI was developed by the Pakistani economist Mahboob ul Haq working alongside Indian economist Amartya Sen.
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
Description : Which of the following is an indicator of poverty in India? (a) Income level (b) Illiteracy level (c) Employment level (d) All of these.
Last Answer : (a) Income level
Description : .Induced investment depends on (a) Price level and rate of interest (b) Level of income and rate of interest © Level of employment and wage rate (d) Price level and wage rate.
Last Answer : (b) Level of income and rate of interest
Last Answer : Health, Education, Income
Description : Investment multiplier shows the effect of investment on (1) Employment(2) Savings (3) Income (4) Consumption
Last Answer : Income
Description : During ecological succession (a) the numbers and types of animals remain constant (b) the changes lead to a community that is in near equilibrium with the environment and is called pioneer community ( ... area (d) the establishment of a new biotic community is very fast in its primary phase.
Last Answer : (c) the gradual and predictable change in species composition occurs in a given area
Description : Which phase of the trajectory model of chronic illness is characterized by the gradual or rapid decline in the trajectory despite efforts to halt the disorder? a) Dying The dying phase ... symptoms worsen or the disability progresses despite attempts to control the course through proper management.
Last Answer : a) Dying The dying phase is characterized by stoppage of life-maintaining functions.
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
Description : Which of the following conditions will occur if the solenoid coil burns out on a cargo winch with an electrical brake? A. The brake will be set by spring force. B. The motor will overspeed and burn ... the cargo boom will fall. D. Nothing will happen; the winch will continue to operate as usual.
Last Answer : Answer: A
Description : Is it possible to keep the ecomomy at constant growth or are we always doomed to a recession?
Last Answer : I believe everything in life is cyclical so there will always be recessions. The difference is the way we approach them to determine how long they will last.
Description : Are we in a double dip recession here in the US?
Last Answer : answer:No. The economy is still growing, just not very rapidly. The technical definition of a recession is two straight quarters of GDP shrinkage. The latest numbers on GDP growth, jobs and trade ballance are ... and somehow think that porsperity will come to us as long as we do nothing to help it.
Description : Will we have a double dip recession in 2010?
Last Answer : answer:There are many who refuse to believe that we have had a recession, but considering that many companies have figured out how to make a profit without hiring and the true extent of unemployment ( ... still tend to head downwards. But as long as the CEOs are collecting record bonuses, who cares?
Description : If there is a global recession then why do all companies just not cut prices?
Last Answer : The problem is that it's the companies which are losing money, which is why employees' income is being reduced and people are losing their jobs. If the companies cut their profits, more ... more expensive things which will cause other companies to lose money. It's a downward-spiral unfortunately.
Description : When too much money is chasing too few goods, the situation is - (1) deflation (2) inflation (3) recession (4) stagflation
Last Answer : (2) inflation Explanation: Demand-pull inflation is asserted to arise when aggregate demand in an economy outpaces aggregate supply. It involves inflation rising as real gross domestic product rises and ... few goods", since only money that is spent on goods and services can cause inflation.
Description : One of the main factors that led to rapid expansion of Indian exports is - (1) Imposition of import duties (2) Liberalization of the economy (3) Recession in other countries (4) Diversification of exports
Last Answer : (4) Diversification of exports Explanation: India has rapidly diversified its exports markets from the traditional export partners towards emerging and developing economies. This has played a crucial ... export markets can be noted from the narrowing dependence on selected economies for exports.
Description : When too much money is chasing too few goods, the situation is - (1) Deflation (2) Inflation (3) Recession (4) Stagflation
Last Answer : (2) Inflation Explanation: Inflation occurs when too much money is chasing too few goods. The prevailing view in mainstream economics is that inflation is caused by the interaction of the supply of ... prices is a result from an increase in the supply of money by central banking authorities.
Description : Beyond a certain point deficit financing will certainly lead to - (1) inflation (2) deflation (3) recession (4) economic stagnation
Last Answer : (1) inflation Explanation: Deficit financing is a practice in which a government spends more money than it receives as revenue, the difference being made up by borrowing or minting new funds ... increasing the money supply and the purchasing power of the people which increases the aggregate demand.
Description : Short term contractions and expansions in economic activity are called (1) Expansions (2) Recession (3) Deficits (4) The business cycle
Last Answer : (4) The business cycle Explanation: The business cycle is the fluctuation in economic activity that an economy experiences over a period of time. It is basically defined in terms of periods ... incomes. During recessions, the economy contracts, as measured by decreases in the above indicators.
Description : What happens when there is a demand deficiency in an economy? (1) Poverty (2) Stagnation (3) Recession (4) Inflation
Last Answer : (2) Stagnation Explanation: Deficient demand refers to the situation when aggregate demand for goods and services falls short of aggregate supply of output which is produced by fully employing ... which both capital and labor are redundant relative to the opportunities for employing them profitably.
Description : Capacity utilization - (1) is usually near 100 percent. (2) represents the percent of the labour force that is employed. (3) is a measure of the proportional of the existing capital ... into a recession, since firms must replace unemployed workers with some other resources to maintain production.
Last Answer : (3) is a measure of the proportional of the existing capital stock used for current production. Explanation: Capacity utilisation refers to the extent or level to which the productive capacity of a ... as a percentage, it is computed by dividing the total capacity with the portion being utilized.
Description : A period of expansion and contraction measured by real GDP is called (a) Business cycle (b) Expansion © Recession (d) Contraction
Last Answer : (a) Business cycle
Description : One of the main factors that led to rapid expansion of Indian exports is (1) Imposition of import duties (2) Liberalisation of the economy (3) Recession in other countries (4) Diversification of exports
Last Answer : Diversification of exports