The 'natural rate of unemployment' in monetarist economics is: MCQ with Answer and Explanation

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The 'natural rate of unemployment' in monetarist economics is:

A. only cyclical unemployment

B. zero unemployment

C. the unemployment rate consistent with stable inflation

D. the maximum unemployment

Answer: Option C

Solution (By JKSSB Mock Tests)

The natural rate of unemployment is the rate consistent with stable inflation, including frictional and structural unemployment.

This question belongs to: Economy GK Economy Set 1

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Question #1

The term 'Stagflation' refers to a situation of:

A. Low inflation and low unemployment

B. High inflation and high unemployment

C. Low inflation and high growth

D. High inflation and high growth

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Correct Answer: Option B

Explanation:
Stagflation is a combination of stagnant economic growth (or high unemployment) along with high inflation, which challenges conventional policy responses.

This question belongs to: Economy GK Economy Set 1

Question #2

The corporate tax rate for existing domestic companies that opted for concessional regime under Taxation Laws Amendment Act 2019 is:

A. 15%

B. 30%

C. 25%

D. 22%

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Correct Answer: Option D

Explanation:
The concessional corporate tax rate for existing domestic companies is 22% plus surcharge and cess.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a feature of the 'Carbon Border Adjustment Mechanism' proposals?

A. Only domestic carbon taxes without border measures

B. A complete ban on all imports

C. Only export subsidies for green goods

D. A levy on imports based on their embedded carbon content to prevent carbon leakage and protect domestic climate policies

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Correct Answer: Option D

Explanation:
A carbon border adjustment mechanism imposes a charge on imported goods equivalent to the domestic carbon price, thereby reducing the risk of carbon leakage and maintaining the competitiveness of domestic producers.

This question belongs to: Economy GK Economy Set 1

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