Important Economic Curves and Indicators CDS Questions

CDS Economy

Important Economic Curves and Indicators MCQ Questions


7.
The long-run Phillips Curve, according to the natural rate hypothesis, is generally:
A.
Horizontal
B.
Vertical at the natural rate of unemployment
C.
Downward sloping
D.
Upward sloping
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ANSWER :
B. Vertical at the natural rate of unemployment
8.
Engel's Law states that as household income rises, the PROPORTION of income spent on food:
A.
Increases
B.
Becomes zero
C.
Remains exactly constant
D.
Decreases
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ANSWER :
D. Decreases
9.
The Engel Curve is named after the economist/statistician:
A.
A. W. Phillips
B.
Ernst Engel
C.
Simon Kuznets
D.
Arthur Laffer
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ANSWER :
B. Ernst Engel
10.
On an Engel Curve, the variable typically measured on the horizontal (x) axis is:
A.
Price
B.
Income
C.
Tax rate
D.
Quantity supplied
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ANSWER :
B. Income
11.
Which pair is correctly matched?
A.
Phillips Curve — Arthur Laffer
B.
Laffer Curve — Ernst Engel
C.
Engel Curve — Ernst Engel
D.
Engel Curve — A. W. Phillips
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ANSWER :
C. Engel Curve — Ernst Engel
12.
The Kuznets Curve hypothesises a relationship between:
A.
Tax rate and revenue
B.
Price and quantity
C.
Economic growth/development and income inequality
D.
Inflation and unemployment
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ANSWER :
C. Economic growth/development and income inequality