EDUCATION CIRCLE

A Recession is a period when the economy of a country is doing badly, for example because industry is producing less and more people are becoming unemployed. The recession caused sales to drop off. We should concentrate on sharply reducing interest rates to pull the economy out of recession.      In a recession, you would usually expect a fall in the inflation rate due to lower demand. Though in theory, we can have a period of stagflation – rising inflation and falling output (e.g. after a rise in the price of oil)  A recession means two consecutive quarters of negative economic growth. With falling economic output and rising spare capacity, prices are likely to fall (or at least go up at a slower rate.)    This is because: Firms have unsold goods. Therefore, to improve their cash flow they try discounting goods to get rid of their excess stock. Lower wage growth. As unemployment rises and there is more competition for job vacancies, it is harder for workers to bargain for

               Dharmenedra Bansal               1. Which of the following explains the term economic growth? a. Increase in per capita production b. Increase in per capita real income c. structural change in the economy d. all the above are right✔ 2. Economic development is characterized by a. Structural change in the economy b. Change in the occupational structure c. Both a and b✔ d. None of the above 3. Which of the following explains the term economic development? a. Improvement in the technology involved b. Improvement in production c. Improvement in distribution system d. All the above✔ 4. An underdeveloped economy is characterized by a. High per capita real income b. Large proportion of labor force in the tertiary sector c. State of deprivation of large proportion of population✔ d. All the above State of deprivation of large proportion of population Underdeveloped countries face the problem of deprivation of large section of the popu

1. The fundamental economic problem faced by all societies is: a. unemployment b. inequality c. poverty d. scarcity✔ 2. "Capitalism" refers to: a. the use of markets b. government ownership of capital goods c. private ownership of capital goods ✔ d. private ownership of homes & cars 3. There are three fundamental questions every society must answer. Which of the following is/are one of these questions? a. What goods and services are to be produced? b. How are the goods and services to be produced? c. Who will get the goods and services that are produced? d. All of the above ✔ 4. If you were working full-time now, you could earn $20,000 per year. Instead, you are working part-time while going to school. In your current part-time job, you earn $5,000 per year. At your school, the annual cost of tuition, books, and other fees is $2,000. The opportunity cost of completing your education is: a. $2,000 b. $5,000 c. $17,000✔ d. $20,000 5. The bowed shape

1. Keynesian economics is also known as: A. Supply side economics B. Monetary economics C. Rational expectations D. Depression economics✔ 2. Which of the following can cause shifts in consumption function: A. Psychological attitude B. Social practices C. Business motives D. Changes in price level✔ 3. APC is determined by the following equation: A. C/Y✔ B. S/Y C. ΔC/ΔY D. ΔS/ΔY 4. In the Keynesian two sector model, when AD = AS, then: A. S<I B. S>I C. S=I✔ D. I=0 5. Which of the following is not correct: A. MPC declines as income increases B. MPC is positive but less than one C. MPS is always positive✔ D. All the above 6. According to Keynes, saving is: A. Private virtue but not social virtue✔ B. Private and social virtue C. Is neither private virtue nor social virtue D. Is either social virtue or private virtue 7. MEC is inversely related to: A. Prospective yield✔ B. Supply price C. Investment D. Rate of interes