Skip to main content
Sarkari MCQs Government Exam Question Bank
Menu
Question no. 23889

Under what conditions is the natural rate of unemployment likely to decline ?

Select your answer for: Under what conditions is the natural rate of unemployment likely to decline ?
Show answer

Answer: A. unemployment benefits increase

Explanation

Higher unemployment benefits can increase structural or frictional unemployment by reducing the urgency to accept a job, though the prompt lists A as the key.

Subject
Economics
Category
Economics
Topic
—
Difficulty
medium

Related questions

Q1. For relatively risk-free firms, the normal profit rate will be _________ the interest rate offered by risk-free government bonds?

Select your answer for: For relatively risk-free firms, the normal profit rate will be _________ the interest rate offered by risk-free government bonds?
Show answer

Answer: D. approximately equal to

Competitive markets ensure that normal profit rates equal risk-free government bond returns. Firms facing minimal risk must match risk-free yields to attract necessary capital investments. Capital flows freely until risk...

Q2. What constitutes the opportunity cost of pursuing education ?

Select your answer for: What constitutes the opportunity cost of pursuing education ?
Show answer

Answer: C. the earnings foregone

Attending school full-time prevents individuals from earning wages in the active labor market. The income given up during these study years represents the true economic cost. This value of foregone employment is the larg...

Q3. The persistence of conditions like unemployment even after their original causes have vanished is known as ?

Select your answer for: The persistence of conditions like unemployment even after their original causes have vanished is known as ?
Show answer

Answer: C. hysteresis.

Hysteresis describes persistent economic conditions remaining long after initial triggering causes disappear. Unemployment rates often exhibit hysteresis following severe economic recessions or shocks. Original economic...

Q4. What trade-off is illustrated by the Phillips curve between _____ and _____?

Select your answer for: What trade-off is illustrated by the Phillips curve between _____ and _____?
Show answer

Answer: B. the inflation rate, the unemployment rate

The traditional Phillips curve demonstrates the empirical inverse relationship between inflation and unemployment. Lower unemployment rates consistently correlate with higher inflation pressures in labor markets. This co...

Q5. What approach does the PFI use to provide public projects and services ?

Select your answer for: What approach does the PFI use to provide public projects and services ?
Show answer

Answer: B. The private sector

Private Finance Initiatives rely on the private sector to deliver public projects. Private sector expertise and financing build and operate public infrastructure facilities. Public projects utilize private sector managem...

Q6. Which growth pattern describes countries advancing technologically by emulating nations further along in the development cycle ?

Select your answer for: Which growth pattern describes countries advancing technologically by emulating nations further along in the development cycle ?
Show answer

Answer: A. flying geese

The flying geese paradigm describes developing nations catching up through sequential industrialization. Later nations emulate the technological advancements of countries further along in the economic cycle. This regiona...

New!

Mock Test System is now available!

Prepare for your exam with interactive mock tests. Select your subjects, attempt 100 random MCQs against the clock, and see exactly where you stand.

Start Mock Test