Economics MCQs

A. There is no income effect when tax rates are changed
B. The income effect of a wage change is greater than the substitution effect of a wage change.
C. There is no substitution effect when tax rates are changed
D. The substitution effect of a wage change is greater than the income effect of a wage change

A. Initially increase and then decrease
B. Decrease continuously.
C. Rise continuously
D. Initially decrease and then increase.

A. Reduce poverty
B. Reduce unemployment
C. Weaken the power of trade unions
D. Help small businesses

A. New classical economists.
B. Left wing theorists
C. Interventionist policies.
D. Monetarists.

A. Maximize producer surplus
B. Are efficient
C. Are inefficient
D. Are equitable

A. Supply-side economics
B. Neo-keynesian economists
C. Rational-expectations economists.
D. New classical economists.

A. Aggregate supply will increase will increase aggregate demand will decrease and the price level will decrease
B. Aggregate supply will increase will increase aggregate output will increase and the price level will decrease
C. Aggregate supply will increase will increase aggregate output will increase and the price level will increase
D. Both aggregate supply and demand will increase will increase and the price level will increase

A. Rs500
B. Rs300
C. Rs200
D. Rs400

A. Maximizes total surplus
B. Generates equality among the members of society
C. Minimizes total surplus
D. Both maximizes total surplus and generates equality among the members of society

A. Are equitable.
B. Are efficient
C. Maximize consumer surplus
D. Are inefficient