CBSE Guess > Papers > Important Questions > Class XII > 2011 > Economics > Economics By Mr. Pranab Sharma

CBSE CLASS XII

Economics (Revision/Self Assessment test)

Page 8 of 11

71. After the passage of the North American Free Trade Agreement, which made it less expensive to import good from Mexico, workers in some industries found their factories being relocated to Mexico to take advantage of lower labor costs. These workers experienced what type of unemployment?
    A) Cyclical
    B) Seasonal
    C) Structural
    D) Frictional E) Foreign
72. If the Federal government expands its support of education and retraining of workers who have been unemployed for a relatively long length of time, which type of unemployment would the education and retraining most likely be targeted?
    A) Cyclical
    B) Seasonal
    C) Structural
    D) Frictional
    E) Discouraged
73. During the Great Depression of the 1930s when the unemployment rate was exceptionally high due to the Great Depression, the government had employment programs, such as the Civilian Conservation Corps, which built campsites and planted trees. These programs were aimed at reducing which type of unemployment?
    A) Cyclical
    B) Seasonal
    C) Structural
    D) Frictional
    E) Discouraged
74. Suppose people decide to buy fewer GE stoves. If General Electric reduces the number of its employees to reduce its costs but no other stove company does so, which type of unemployment results?
    A) Cyclical
    B) Seasonal
    C) Structural
    D) Frictional
    E) Discouraged
75. If the government increases unemployment benefits, then the labor
    A) demand curve shifts rightward.
    B) demand curve shifts leftward.
    C) supply curve shifts rightward.
    D) supply curve shifts leftward.
    E) Both answers B and D are correct.
76. If the government increases unemployment benefits, then the equilibrium amount of employment ________ and potential GDP ________.
    A) increases; increases
    B) increases; decreases
    C) decreases; increases
    D) decreases; decreases
    E) does not change; does not change
77. If the government raises income taxes, then the labor
    A) demand curve shifts rightward.
    B) demand curve shifts leftward.
    C) supply curve shifts rightward.
    D) supply curve shifts leftward.
    E) Both answers B and D are correct.
78. If the government raises income taxes, then the equilibrium amount of employment ________ and potential GDP ________.
    A) increases; increases
    B) increases; decreases
    C) decreases; increases
    D) decreases; decreases
    E) does not change; does not change
79. Economic growth in Cuba has been slow; what can best explain the slow growth?
    A) Lack of economic resources
    B) Lack of incentive mechanisms and economic freedom
    C) Labor productivity is low.
    D) A non-democratic form of government
    E) Too much competition within the economy
80. The presence of government corruption in some countries
    A) slows their economic growth.
    B) speeds their economic growth.
    C) invalidates the new growth theory's predictions.
    D) supports the classical growth theory's predictions.
    E) invalidates the neoclassical growth theory's predictions.

 

Submitted By Mr. Pranab Sharma
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