The 'long-run Phillips curve' is vertical at: MCQ with Answer and Explanation

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The 'long-run Phillips curve' is vertical at:

A. zero inflation

B. full employment with zero unemployment

C. maximum inflation

D. the natural rate of unemployment

Answer: Option D

Solution (By JKSSB Mock Tests)

The long-run Phillips curve is vertical at the natural rate of unemployment.

This question belongs to: Economy GK Economy Set 1

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Question #1

Human capital formation mainly involves:

A. accumulation of physical capital

B. increase in foreign exchange reserves

C. investment in education, health and skill development

D. increase in natural resources

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Correct Answer: Option C

Explanation:
Human capital formation involves investment in education, health and skills.

This question belongs to: Economy GK Economy Set 1

Question #2

The concept of 'Opportunity Cost of Holding Money' is related to:

A. The cost of banking services only

B. The cost of producing goods

C. The cost of printing money

D. The interest forgone by holding cash instead of interest-bearing assets

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Correct Answer: Option D

Explanation:
The opportunity cost of holding money is the interest income that could have been earned by holding interest-bearing assets instead of cash.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Reserve Bank of India' issues currency notes of denominations up to:

A. Rs 100

B. Rs 10,000

C. Rs 5,000

D. Rs 1,000

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Correct Answer: Option D

Explanation:
RBI issues currency notes up to Rs 1,000 denomination, while one rupee notes are issued by Government of India.

This question belongs to: Economy GK Economy Set 1

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