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

CBSE CLASS XII

Economics (Revision/Self Assessment test)

Page 7 of 11

61. Looking at real and nominal interest rates in the United States since 1965, we see that the
    A) nominal interest rate has at times been negative.
    B) real interest rate has been greater than 10 percent for most years.
    C) real interest rate has at times been negative.
    D) real interest rate was above 5 percent during the low inflation of the 1970s.
    E) real interest is generally greater than the nominal interest rate.
62.   In the 1970s, a period of a high rate of inflation, a news magazine article listed people who were losing from inflation because their real purchasing power was falling. Those who lost the most were university professors. Which of the following explains this?
    A) The marginal benefit of their work was falling.
    B) Their wage rates did not increase as much as the CPI.
    C) Their wage rates increased more rapidly than the CPI.
    D) The professors suffered from the CPI bias.
    E) The professors' market basket was different than the market basket used to calculate the CPI.
63. Consider the following people:
    Chris quits his job as an automobile mechanic to pursue his college education full-time.
    Arrelo is temporarily laid off from her technical support job because of a strike by production workers.
    Schurita graduated from college in May and is currently looking for a job.
    Bo quit his job on September 1 and then, after looking for a new job, will begin his new job on October 1.
    Terri retired from his job on May 1.
    Vicki works part-time at Bainen Press to help pay her college tuition.
64. Chris would be classified as
    A) a job leaver.
    B) a job loser.
    C) an entrant.
    D) unemployed.
    E) Both answers A and D are correct.
65. Arrelo would be classified as
    A) a job loser.
    B) a job leaver.
    C) an entrant.
    D) a reentrant.
    E) not in the labor force.
66. Schurita would be classified as
    A) an entrant.
    B) a job loser.
    C) a job leaver.
    D) employed.
    E) not in the labor force.
67. Bo's actions would
    A) have no impact on the September unemployment rate or the October unemployment rate.
    B) raise the September unemployment rate and lower the October unemployment rate.
    C) raise the September unemployment rate and not change the October unemployment rate.
    D) classify him as out of the labor force in September.
    E) raise the September unemployment rate and the October unemployment rate.
68. Terri would be classified as ________ for April and as ________ in May.
    A) employed; a job leaver
    B) employed; unemployed
    C) employed; a job loser
    D) unemployed; unemployed
    E) job loser; a job leaver
69. When the unemployment rate equals the natural unemployment rate, most likely the economy is producing a discouraged worker
    A) on the production possibilities frontier.
    B) within the production possibilities frontier.
    C) beyond the production possibilities frontier.
    D) either on or within the production possibilities frontier.
    E) either on or beyond the production possibilities frontier.
70. Producing an amount of GDP equal to potential GDP is most consistent with the economy producing
    A) on the production possibilities frontier.
    B) within the production possibilities frontier.
    C) beyond the production possibilities frontier.
    D) either on or within the production possibilities frontier.
    E) either on or beyond the production possibilities frontier.

 

Submitted By Mr. Pranab Sharma
Email Id : [email protected]