MCQOPTIONS
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MCQOPTIONS
This section includes 381 Mcqs, each offering curated multiple-choice questions to sharpen your General knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Social scientists explain the incest taboo as_______________? |
| A. | biologically programmed |
| B. | a religious universal |
| C. | way of reducing family conflict |
| D. | all of the above |
| Answer» D. all of the above | |
| 2. |
The demand for labor is the same as the |
| A. | Marginal revenue product |
| B. | Marginal physical product |
| C. | Marginal cost |
| D. | Wage |
| Answer» B. Marginal physical product | |
| 3. |
The main reason why cheques can be regarded as money is that: |
| A. | They are accepted by most people |
| B. | They act as receipts |
| C. | They can be written for any amount |
| D. | They can be sent safely by post |
| Answer» B. They act as receipts | |
| 4. |
Sex stereotypes are traditionally found in________________? |
| A. | books |
| B. | movies |
| C. | segregation of boys and girls in certain activities |
| D. | all of the above |
| Answer» E. | |
| 5. |
The asset that is capable of generating income and that have itself been produced is termed |
| A. | Credit |
| B. | Capital |
| C. | Annuity |
| D. | Premium |
| Answer» B. Capital | |
| 6. |
Term the group of countries that have removed all restrictions on trade among themselves? |
| A. | Close-Trade zone |
| B. | Free-trade zone |
| C. | Both of them |
| D. | None of them |
| Answer» D. None of them | |
| 7. |
Social institutions________________? |
| A. | are ingrained patterns of behavior representing solutions to universal human needs |
| B. | are things like banks and schools |
| C. | make up cultural components |
| D. | all of the above |
| Answer» B. are things like banks and schools | |
| 8. |
The economic system with little or no external trade is called: |
| A. | Open economy |
| B. | Autarky |
| C. | Close economy |
| D. | All of the above |
| Answer» B. Autarky | |
| 9. |
The ability-to-pay principle of taxation suggests that if a tax system is to be vertically equitable it should be ? |
| A. | efficient |
| B. | progressive |
| C. | regressive |
| D. | proportional |
| Answer» C. regressive | |
| 10. |
Suppose that Boeing is to receive payment in euros in 6 month and wants to engage in hedging the firm would _______ euros on the 6-month forward market in order to protect itself from a/an of the euro? |
| A. | sell, appreciation |
| B. | sell, depreciation |
| C. | buy, depreciation |
| D. | buy, appreciation |
| Answer» C. buy, depreciation | |
| 11. |
Suppose the economy is initially is long run equilibrium Then suppose there is a drought that destroys much of the wheat crop According to the model of aggregate demand and aggregate supply, what happens of prices and output in the short run ? |
| A. | Price rise, output falls |
| B. | Price fall, output rises |
| C. | Price rise, output rises |
| D. | Price fall, output falls |
| Answer» B. Price fall, output rises | |
| 12. |
Suppose you find Rs 20. If you choose to use the Rs 20 to go to a football match your opportunity cost of going to the game is ? |
| A. | nothing because you found the money. |
| B. | Rs20 (because you found the money Rs 20 to buy other things) plus the value of your time spent at the game. |
| C. | Rs 20 (because you could have used the Rs 20 to buy other things) plus the value of your time spent at the game plus the cost of the dinner you purchased at the game. |
| D. | Rs20 (because you could have used the Rs20 to buy other ghings) |
| Answer» C. Rs 20 (because you could have used the Rs 20 to buy other things) plus the value of your time spent at the game plus the cost of the dinner you purchased at the game. | |
| 13. |
Tariff levels in advanced countries tend to be __________ tariff levels in developing countries? |
| A. | higher than |
| B. | equal to |
| C. | lower than |
| D. | there is no general pattern |
| Answer» D. there is no general pattern | |
| 14. |
Sex roles are______________? |
| A. | behavioral norms into which males and females are socialized |
| B. | behavioral norms into which only males are socialized |
| C. | equivalent to macho roles |
| D. | what women are attempting to throw off |
| Answer» B. behavioral norms into which only males are socialized | |
| 15. |
A statement of the rights and obligations of each party to a transaction or transactions is called: |
| A. | Treaty |
| B. | Compact |
| C. | Contract |
| D. | Covenant |
| Answer» B. Compact | |
| 16. |
Which of the following activity will be considered as investment? |
| A. | Construction of a new house |
| B. | Purchasing a newly floated share of a joint stock company |
| C. | Building a new factory |
| D. | All the above |
| Answer» B. Purchasing a newly floated share of a joint stock company | |
| 17. |
The net profit after depreciation as a percentage of average capital employed in a business is known as: |
| A. | Rate of Substitution |
| B. | Rate of Interest |
| C. | Rate of Return |
| D. | None of the above |
| Answer» B. Rate of Interest | |
| 18. |
Suppose a wave of investor and consumer pessimism in the USA causes a reduction in spending If the US federal Reserve (Which has a broader remit than the Bank of England Which is charged only with controlling inflation) chooses to engage in activist stabilization policy it should ? |
| A. | Increase government spending and decrease taxes |
| B. | decrease the money supply |
| C. | decrease government spending and increase taxes |
| D. | decrease interest rates |
| Answer» E. | |
| 19. |
Short-run equilibrium output means that aggregate demand __________ actual output? |
| A. | is less than |
| B. | equals |
| C. | is greater than |
| D. | fluctuates around |
| Answer» C. is greater than | |
| 20. |
Pinpoint the main objectives of World Trade Organization (WTO): |
| A. | Fix a quota for each member country trading in International Market |
| B. | To eliminate quota system and promote free competition in trade |
| C. | To secure Third World markets for American and European goods |
| D. | To abolish completely custom duties on items of trade within member countries |
| Answer» B. To eliminate quota system and promote free competition in trade | |
| 21. |
Suppose consumer tastes shift toward the consumption of apples Which of the following statements is an accurate description of the impact of this event on the market for apples ? |
| A. | There is an increase in the quantity demanded of apples and in the supply for apples |
| B. | There is an increase in the demand and supply of apples. |
| C. | There is an increase in the demand for apples and a decrease in the supply of apples |
| D. | There is a decrease in the quantity demanded of apples and an increase in the supply for apples |
| Answer» B. There is an increase in the demand and supply of apples. | |
| 22. |
Subdued religious rituals which appeal to upper-middle -class Protestants are the hallmark of which of the following denominations ? |
| A. | Episcopalians |
| B. | Presbyterians |
| C. | Congregationalists |
| D. | all of the above |
| Answer» E. | |
| 23. |
Which of the following is regarded as a liability by choosing banks? |
| A. | Overdrafts |
| B. | Personal loans |
| C. | Money at call |
| D. | Deposits of customers |
| Answer» B. Personal loans | |
| 24. |
Term the body of goods and monies from which future income can be derived ? |
| A. | Net assets |
| B. | Solid asset |
| C. | Holdings |
| D. | Capital |
| Answer» E. | |
| 25. |
The sale of government owned equity in nationalized industries or other commercial enterprises to private investors is called: |
| A. | Nationalization |
| B. | Privatization |
| C. | Denationalization |
| D. | Both b and c |
| Answer» B. Privatization | |
| 26. |
Socialism and communism both call for________________? |
| A. | government controlling parts of the economy for the common good |
| B. | revolutionary change |
| C. | abolition of private property |
| D. | totalitarian government and dictatorship of the proletariat |
| Answer» B. revolutionary change | |
| 27. |
Supervising and investigating the manner in which the legislative bureaucracy carries out and implements the laws Congress passes is a function called_____________? |
| A. | control of Congress |
| B. | Ways and Means |
| C. | oversight |
| D. | supervision |
| Answer» D. supervision | |
| 28. |
Suppose that the purchasing power parity estimate of the dollar/euro exchange rate is $1.30 per euro, and the current spot rate is $1.3 8 per euro. Comparing these two exchange rates from a long-run viewpoint you would ? |
| A. | anticipate the dollar to depreciate against the euro |
| B. | anticipate the dollar to appreciate against the euro |
| C. | have no anticipation concerning future movements in the dollar/euro exchange rate |
| Answer» C. have no anticipation concerning future movements in the dollar/euro exchange rate | |
| 29. |
Demand pull inflation may be caused by ? |
| A. | An increase in costs |
| B. | A reduction in interest rate |
| C. | A reduction in government spending |
| D. | An outward shift in aggregate supply |
| Answer» C. A reduction in government spending | |
| 30. |
Small nations whose trade and financial relationships are mainly with a single partner tend to utilize ? |
| A. | pegged exchange rates |
| B. | freely floating exchange rates |
| C. | managed floating exchange rates |
| D. | crawling exchange rates |
| Answer» B. freely floating exchange rates | |
| 31. |
Suppose, due to political instability, Russians suddenly choose to invest in UK assets as opposed to Russian assets Which of the following statements is true regarding UK net foreign investment ? |
| A. | UK net foreign investment is unchanged because only UK residents can after UK net foreign investment |
| B. | UK net foreign investment rises |
| C. | UK net foreign investment falls |
| D. | None of the above |
| Answer» D. None of the above | |
| 32. |
Per capita income is: |
| A. | Average income of the working class |
| B. | Average income of the people of a country during a year |
| C. | Average income of labourers only |
| D. | None of the above one |
| Answer» B. Average income of the people of a country during a year | |
| 33. |
The lowering of the value of a currency in the international market or against specific other currencies, which makes exports cheaper and imports expensive is called: |
| A. | Devaluation |
| B. | Revolution |
| C. | Inflation |
| D. | Deflation |
| Answer» B. Revolution | |
| 34. |
Initial conditions in the year before the crisis in Thailand Indonesia Malaysia the Philippines and Korea in 1997 indicate that ? |
| A. | capital inflows/GDP were very low |
| B. | . Nonperforming bank loan ratios were high |
| C. | I. current account deficits were high |
| D. | . credit growth was fast |
| Answer» B. . Nonperforming bank loan ratios were high | |
| 35. |
Social life is organized and structured through____________? |
| A. | rules and regulations |
| B. | group situations and the positions of individuals |
| C. | patterns of actions |
| D. | all of the above |
| Answer» E. | |
| 36. |
Term a large payment to a senior employee who is forced into retirement or fired as a result of takeover or similar development ? |
| A. | Golden bonus |
| B. | Golden shake hand |
| C. | Friendly handshake |
| D. | Golden handshake |
| Answer» E. | |
| 37. |
One British psychologist believes that the Western family causes most of the mental illness in individuals This theory implies that ___________?? |
| A. | the primary group is always helpful to the individual |
| B. | primary group relations can be harmful to the individual |
| C. | secondary relations are more important than primary ones |
| D. | none of the above are relevant |
| Answer» C. secondary relations are more important than primary ones | |
| 38. |
Suppose a frost destroys much of the Florida orange crop. At the same time, suppose consumer tastes shift toward orange juice, What would we expect to happen to the equilibrium price and quantity in the market for orange juice ? |
| A. | price will decrease, quantity is ambiguous |
| B. | The impact on both price and quantity is ambiguous. |
| C. | Price will increase, quantity will increase |
| D. | price will increase, quantity will decrease |
| Answer» B. The impact on both price and quantity is ambiguous. | |
| 39. |
MNCs can help the developing country to ? |
| A. | Finance a savings gap or balance of payments deficit |
| B. | - Obtain foreign technology by adapting existing processes |
| C. | I- Generate appropriate technology by adapting existing processes |
| D. | - Employ domestic labor, especially in skilled jobs |
| Answer» B. - Obtain foreign technology by adapting existing processes | |
| 40. |
The largest source of tax revenue for the federal government is: |
| A. | The personal income tax |
| B. | The social security tax |
| C. | The property tax |
| D. | The sales tax |
| Answer» B. The social security tax | |
| 41. |
Which of the following best defines price discrimination? |
| A. | Charging different prices on the basis of race |
| B. | Charging different prices for goods with different costs of production |
| C. | Charging different prices based on cost-of-service differences |
| D. | Selling a certain product of given quality and cost per unit at different prices to different buyers |
| Answer» B. Charging different prices for goods with different costs of production | |
| 42. |
Suppose there is an increase in the both the supply and demand for personal computers Further, suppose the supply of personal computer increase more than demand for personal computers In the market for personal computers i the market for personal computers, we would expect ? |
| A. | the change in the equilibrium quantity to be ambiguous and the equilibrium price to fall. |
| B. | the equilibrium quantity to rise and the equilibrium price to rise |
| C. | the equilibrium quantity to rise and the change in the equilibrium price to be ambiguous |
| D. | the equilibrium quantity to rise and the equilibrium price to fall |
| Answer» E. | |
| 43. |
The compulsory transfer of money from private individuals, institutions or groups to the government is called: |
| A. | Tax burden |
| B. | Tax evasion |
| C. | Taxation |
| D. | Tax yield |
| Answer» B. Tax evasion | |
| 44. |
Why is the law of diminishing marginal returns true? |
| A. | Specialization and divis ion of labor |
| B. | Spreading the average fixed cost |
| C. | Limited capital |
| D. | All factors being variable in the long-run |
| Answer» B. Spreading the average fixed cost | |
| 45. |
The excess of an expenditure flow over an income flow is termed as: |
| A. | Loss |
| B. | Deficit |
| C. | Surplus |
| D. | Shortage |
| Answer» B. Deficit | |
| 46. |
Skilled labor is relatively scarce because ? |
| A. | there are too few teachers |
| B. | too few student places in higher education |
| C. | it is costly to acquire human capital |
| Answer» D. | |
| 47. |
Which of the following are costs of inflation ? |
| A. | inflation weakens the creation of credit and capital markets |
| B. | - inflation distorts business behavior especially investment behavior |
| C. | I- inflation increase the price of foreign goods relative to domestic goods |
| D. | - Inflation imposes a tax on the holders of money |
| Answer» B. - inflation distorts business behavior especially investment behavior | |
| 48. |
The price elasticity of demand is the: |
| A. | Percentage change in quantity demanded divided by the percentage change in price |
| B. | Percentage change in price divided by the percentage change in quantity demanded |
| C. | Dollar change in quantity demanded divided by the dollar change in price |
| D. | Percentage change in quantity demanded divided by the percentage change in quantity supplied |
| Answer» B. Percentage change in price divided by the percentage change in quantity demanded | |
| 49. |
Suppose the central bank purchases a government bond from a person who deposits the entire amount received from the sale in her bank the money supply will ? |
| A. | rise by less than the amount of the deposit |
| B. | fall by exactly the amount of the deposit as long as the bank does not change its reserve ratio |
| C. | fall by exactly the amount of the deposit as long as the bank does not change its reserve ratio |
| Answer» B. fall by exactly the amount of the deposit as long as the bank does not change its reserve ratio | |
| 50. |
In food demand growth equation D = ? + a E, a is the income elasticity of demand for food E is the per capita income growth and ? is ? |
| A. | Poverty rates |
| B. | food security index |
| C. | change in the quantity of food demanded per capita |
| D. | population growth |
| Answer» E. | |