MCQOPTIONS

Explore topic-wise MCQs in Economics.

This section includes 17 Mcqs, each offering curated multiple-choice questions to sharpen your Economics knowledge and support exam preparation. Choose a topic below to get started.

1.	Worker-managed socialism helped contribute to ________ ‘s rapid economic growth from 1959 to 1979?
A.	Yugoslavia
B.	Chile
C.	Vietnam
D.	Japan
Answer» B. Chile

2.	Which of the following is not a public policy to promote the private sector ?
A.	Investigating development potential through scientific and market research and natural resources surveys
B.	Providing adequate infrastructure for public and private agencies
C.	Creating markets, including commodity markets, security exchanges, banks credit facilities and insurance companies
D.	Increasing market monopolies and oligopolies to help producers
Answer» E.

3.	Which of the following assumptions underlying input-output analysis raises about its validity ?_x005F_x000D_I- The technical coefficients are fixed which means so substitution between inputs occurs_x005F_x000D_II- There are no externalities so that the total effect of carrying out several activities is the sum of the separate effects_x005F_x000D_III- Each good is produced by only one industry and each industry produces only one commodity_x005F_x000D_IV- There is no technical change
A.	I and II only
B.	I, II, III only
C.	I, II, IV only
D.	I, II, III and IV
Answer» E.

4.	Under Soviet-type economy-wide central planning ?
A.	most resource lack freedom to move to their highest value uses
B.	resources are free to move to their lowest cost uses
C.	resources owned by private entities moves to efficient use but not those owned publicly
D.	resources are privately owned by capitalists
Answer» B. resources are free to move to their lowest cost uses

5.	The market efficiently allocates scarce resource among alternative ends such that ?_x005F_x000D_I- consumers receive goods for which they are willing to pay_x005F_x000D_II- Production resources hire out to maximize income)_x005F_x000D_III- the market determines available labor and capital_x005F_x000D_IV- the market distributes income among rich individuals
A.	III and IV only
B.	II and III only
C.	I, II and III only
D.	I, II, III and IV
Answer» E.

6.	The input-output table, when divided vertically shows ?
A.	the inputs to each industry from other industries and sectors
B.	development planning and the required information on national income growth
C.	the planned public capital divided by feasible actual industrial projects public capital
D.	how the output of each industry is distributed within the sectors of the economy
Answer» B. development planning and the required information on national income growth

7.	Polish economist Oskar Lange’s model of decentralized ______ combined the advantages of market allocation with more uniform income distribution by dividing the returns from social ownership of nonhuman productive resources among the whole population ?
A.	market socialism
B.	capitalism
C.	mixed economy
D.	monopoly
Answer» B. capitalism

8.	Planning in many LDCs has failed because detailed programs for the public sector have not been worked out and ?
A.	governments depend primarily on their colonial masters
B.	excessive controls are used in the private sector
C.	the brain drains cost government substantially
D.	monopolies dominate in the agricultural sector
Answer» C. the brain drains cost government substantially

9.	Most mixed or capitalist developing countries are limited to an indicative plan, which indicates expectations, aspirations, and intentions ?
A.	but falls short of authorization
B.	with immediate implementation
C.	of the central bank
D.	of implementation through foreign aid
Answer» B. with immediate implementation

10.	Government’s use of coordinated policies to achieve national economic objectives is ?
A.	commanding heights
B.	entrepreneurial programs
C.	public physical policy
D.	development planning
Answer» E.

11.	Goals are achieved through ____ such a monetary fiscal, exchange rate tariff tax subsidy, business incentive foreign investment and foreign aid?
A.	indicative plan
B.	central bank policies
C.	central planning
D.	instrument variables
Answer» E.

12.	Deepak Lal argues that development economics is dominated by _______ approach that favors government intervention into LDC prices?
A.	dirigiste
B.	Keynesian
C.	Commanding heights
D.	soft budget
Answer» B. Keynesian

13.	Branko Horvat’s historical review of the last two and one-half century indicates that in large part market or decentralized socialism ?
A.	has failed
B.	works well in Utopia
C.	is widely used in sub Saharan Africa
D.	is the only way to eradicate poverty?
Answer» B. works well in Utopia

14.	Annual GNP growth of 6% poverty reduced by 1% point of the population Balance of payments deficit not in excess of $200 million For a planner, the above are ?
A.	achieved only through socialism
B.	target variables
C.	bound by soft budget
D.	recurrent expenditures
Answer» C. bound by soft budget

15.	According to Oskar Lange’s model socialist enterprises should produce where ?
A.	The monopoly profit maximization rule applies
B.	Product price equals marginal cost
C.	marginal revenue equals average cost
D.	total revenue equals total cost
Answer» C. marginal revenue equals average cost

16.	A state planning ideology arose in LDCs as a reaction to nationalist perceptions of ?
A.	Keeping balanced budget, a price target
B.	slow economic growth under colonial capitalism
C.	minimizing public spending in the rural areas
D.	western countries, nation-state ideology
Answer» C. minimizing public spending in the rural areas

17.	A medium-term plan can be a(n) ________ revised at the end of each year?
A.	instrument variable
B.	seasonal expenditure
C.	rolling plan
D.	perspective plan
Answer» D. perspective plan