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.
| 51. |
Inflation is measured by the ? |
| A. | consumer price index (CPI) |
| B. | - GDP deflator |
| C. | I- current account |
| D. | - depreciation |
| Answer» B. - GDP deflator | |
| 52. |
Speculative bubbles may occur in the shares market ? |
| A. | during periods of extreme pessimism because so many stocks become undervalued |
| B. | only when people are irrational |
| C. | when stocks are fairly valued |
| D. | because rational people may buy an overvalued share if they think they can sell it to someone for even more at a later date |
| Answer» D. because rational people may buy an overvalued share if they think they can sell it to someone for even more at a later date | |
| 53. |
Short run average total costs are equals to the sum of ____ and _____? |
| A. | Short run opportunity costs, profit |
| B. | Short run variable costs, profit |
| C. | Short run average variable costs, profit |
| D. | Short run average variable costs, profit run average fixed costs |
| Answer» E. | |
| 54. |
Similar to import tariffs import quotas tend to result in ? |
| A. | higher prices and reduced imports |
| B. | increased government revenue |
| C. | increased consumer surplus |
| D. | decrease producer surplus |
| Answer» B. increased government revenue | |
| 55. |
The interest due by applying the rate to the sum of the capital invested plus the interest previously earned and reinvested is referred to as |
| A. | Simple Interest |
| B. | Compound Interest |
| C. | Both of the above |
| D. | None of the above |
| Answer» B. Compound Interest | |
| 56. |
Structuralist economists who study developing countries focus their attention on ? |
| A. | changes in industrial structure over time |
| B. | specific barriers to development and how to overcome them |
| C. | The impact of international trade structures on developing countries |
| D. | the caste of class structure and discrimination in the labor market |
| Answer» C. The impact of international trade structures on developing countries | |
| 57. |
Statistics that allow researchers to generalize to a population from a sample are called______________? |
| A. | correlational |
| B. | descriptive |
| C. | inferential |
| D. | longitudinal |
| Answer» D. longitudinal | |
| 58. |
Compared to the case of perfect competition, a monopolist is more likely to: |
| A. | Charge a higher price |
| B. | Produce a lower quantity of the product |
| C. | Make a greater amount of economic profit |
| D. | All of the above |
| Answer» B. Produce a lower quantity of the product | |
| 59. |
An unincorporated business formed by the association of two or more persons who share risks and profits is called: |
| A. | Merger |
| B. | Alliance |
| C. | Partnership |
| D. | Corporation |
| Answer» B. Alliance | |
| 60. |
Standard English and the music of music This belief is an example of_______________? |
| A. | structural discrimination |
| B. | attitudinal discrimination |
| C. | individual discrimination |
| D. | elitist discrimination |
| Answer» C. individual discrimination | |
| 61. |
Suppose there is an increase in both the supply and demand for personal computers. In the market for personal computers, we would expect? |
| A. | the equilibrium quantity to rise and the equilibrium price to rise |
| B. | the equilibrium quantity to rise and the equilibrium price to fall |
| C. | the equilibrium quantity to rise and the equilibrium price to remain constant |
| D. | the change in the equilibrium quantity to be ambiguous and the equilibrium price to rise |
| Answer» B. the equilibrium quantity to rise and the equilibrium price to fall | |
| 62. |
The notion that, following a currency depreciation the balance of trade falls for a while before increasing is called an effect ? |
| A. | relative price |
| B. | elasticity |
| C. | J Curve |
| D. | Pass through |
| Answer» D. Pass through | |
| 63. |
Central banks in LDCs generally have less effect on expenditure and output than in LDCs because of ? |
| A. | an externally dependent banking system |
| B. | - a poorly developed securities market |
| C. | I- a low percentage of demand deposits divided by the total money supply |
| D. | - the relative insensitivity of investment and employment to monetary policies |
| Answer» B. - a poorly developed securities market | |
| 64. |
In an organized market, an intermediary between a buyer and a seller is called: |
| A. | Broker |
| B. | Stockbroker |
| C. | Commission agent |
| D. | Negotiator |
| Answer» B. Stockbroker | |
| 65. |
Social structure refers to_________________? |
| A. | biological cell patterns |
| B. | norms roles and group in a social system |
| C. | patterns of individual behavior |
| D. | what the individual becomes in society |
| Answer» C. patterns of individual behavior | |
| 66. |
Suppose that the United Kingdom devalues the pound if both exports and imports are written in terms of pounds then the United Kingdom balance of trade during a currency contract period ? |
| A. | improves |
| B. | worsens |
| C. | is unaffected |
| D. | falls for a while before increasing |
| Answer» D. falls for a while before increasing | |
| 67. |
Suppose that ABC publishing sells an economics textbook and accompanying study guide. Raheel is willing to pay Rs75 for the text and Rs15 for the study guide. Mariam is willing to spend Rs60 for the text and Rs25 for the study guide. Suppose both the book and study guide have a zero marginal cost of study production. If ABC publishing engages in tying the two products its best strategy is to charge a combined price of ? |
| A. | Rs 60 |
| B. | Rs 90 |
| C. | Rs 85 |
| D. | Rs 75 |
| Answer» D. Rs 75 | |
| 68. |
A tax levied as a proportion of the retail price of a commodity at the point of sale is called: |
| A. | Income tax |
| B. | Wealth tax |
| C. | Sales tax |
| D. | Property tax |
| Answer» B. Wealth tax | |
| 69. |
Suppose all banks maintain a 100 percent reserve ratio. If an individual deposits Rs 1,000 of currency in a bank ? |
| A. | the money supply increases by more than Rs 1,000 |
| B. | the money supply increase by less than Rs 1,000 |
| C. | the money supply decrease by less than Rs 1,000 |
| D. | the money supply decrease by more than Rs 1,000 |
| Answer» B. the money supply increase by less than Rs 1,000 | |
| 70. |
A percentage of the value of a transaction taken by an intermediary as payment for his services is called: |
| A. | Profit |
| B. | Commission |
| C. | Percentage |
| D. | Fee |
| Answer» B. Commission | |
| 71. |
When entering a building, Asim diverts his path to go through an open door rather than make the physical effort to open the closed door that is directly in his path. This is an example of: |
| A. | irrational behavior |
| B. | a lazy person |
| C. | marginal benefit-marginal cost analysis |
| D. | programmed learning |
| Answer» D. programmed learning | |
| 72. |
Suppose there are three identical vases available to be purchased. Buyer 1 is willing to pay Rs30 for one, buyer 2 is willing to pay Rs25 for one, and buyer 3 is willing to pay Rs20 for one. If the price is Rs25, how many vases will be sold and what is the value of consumer surplus in this market ? |
| A. | Three vases will be sold, and consumer surplus is Rs80 |
| B. | One vase will be sold, and consumer surplus is Rs5. |
| C. | One vase will be sold, and consumer surplus is Rs30. |
| D. | Three vases will be sold, and consumer surplus is Rs0. |
| Answer» B. One vase will be sold, and consumer surplus is Rs5. | |
| 73. |
The lowest price below which a thing will not be sold is called its: |
| A. | Floor price |
| B. | Ceiling price |
| C. | Real price |
| D. | Average price |
| Answer» B. Ceiling price | |
| 74. |
The market for long term loanable funds as different from the market that deals in short term loans is called: |
| A. | Capital Market |
| B. | Capital Stock |
| C. | Both of the above |
| D. | None of the above |
| Answer» B. Capital Stock | |
| 75. |
Suppose the economy is initially in long run equilibrium Then suppose there is a drought that destroys much of the wheat crop if policymakers allow the economy to adjust to long-run equilibrium on its own, according to the model to aggregate demand and aggregate supply what happens to prices and output in the long run ? |
| A. | Output rises, prices are unchanged from the initial value |
| B. | Output and the price level are unchanged from their initial values |
| C. | Output falls, prices are unchanged from the initial value |
| D. | Prices fall, output is unchanged from its initial value |
| Answer» C. Output falls, prices are unchanged from the initial value | |
| 76. |
A theory ? |
| A. | is a systematic explanation of relationships between economic variables |
| B. | - explains causal relationships among variables |
| C. | I- provides a basis for policy |
| D. | - provides an explanation of all factors influencing economic growth. |
| Answer» B. - explains causal relationships among variables | |
| 77. |
Small nations with more than one major trading partner tend to peg the value of their currencies to ? |
| A. | gold |
| B. | silver |
| C. | a single currency |
| D. | a basket of currencies |
| Answer» E. | |
| 78. |
The legal instrument that pledges a house or other real estate as security for repayment of a loan is called: |
| A. | Mortgage |
| B. | Bond |
| C. | Foreclosure |
| D. | Lien |
| Answer» B. Bond | |
| 79. |
The fixed interest security issued by governments, banks or other financial institutions is also termed |
| A. | Bargain |
| B. | Bond |
| C. | Compact |
| D. | Contract |
| Answer» B. Bond | |
| 80. |
Suppose that ABC publishing sells an economics textbook and accompanying study guide. Raheel is willing to pay Rs75 for the text and Rs15 for the study guide. Mariam is willing to spend Rs60 for the text and Rs25 for the study guide. Suppose both the book and study guide have a zero-marginal cost of study production. If ABC publishing charges separate price for both products its best strategy is to charge price that when combined, total ? |
| A. | Rs 85 |
| B. | Rs 75 |
| C. | Rs 80 |
| D. | Rs 60 |
| Answer» C. Rs 80 | |
| 81. |
Spending on motoring as a % of household expenditure in the UK shows that motoring is ? |
| A. | Environmentally damaging |
| B. | an inferior good |
| C. | a potential public good |
| D. | a superior good |
| Answer» E. | |
| 82. |
Suppose that rising U.S income leads to higher sales and profits in the United States This would likely result in ? |
| A. | increasing portfolio investment into the United States |
| B. | decreasing portfolio investment into the United States |
| C. | increasing direct investment into the United States |
| D. | decreasing direct investment into the United States |
| Answer» D. decreasing direct investment into the United States | |
| 83. |
The demand for labor slopes down and to the right because of |
| A. | The law of demand |
| B. | The iron law of wages |
| C. | The law of diminishing marginal returns |
| D. | Economies of scale |
| Answer» B. The iron law of wages | |
| 84. |
Under financial repression ? |
| A. | banks engage in non-price rationing of loans |
| B. | - banks face pressure for loans to those with political connections |
| C. | I- banks charge a high premium on foreign investments |
| D. | - banks depend on foreign banks to set interest rates |
| Answer» B. - banks face pressure for loans to those with political connections | |
| 85. |
If there is a price floor, there will be |
| A. | Shortages |
| B. | Surpluses |
| C. | Equilibrium |
| D. | Sellers providing goods for free that were formerly not free |
| Answer» B. Surpluses | |
| 86. |
Term the sole legal right to print or publish anything that belongs to the author ? |
| A. | property right |
| B. | Sole right |
| C. | Copyright |
| D. | rights |
| Answer» B. Sole right | |
| 87. |
The law of diminishing (marginal) returns states that as more of a variable factor is added to a certain amount of a fixed factor, beyond some point: |
| A. | Total physical product begins to fall |
| B. | The marginal physical product rises |
| C. | The marginal physical product falls |
| D. | The average physical product falls |
| Answer» B. The marginal physical product rises | |
| 88. |
The shift toward imperfectly competitive markets in domestic and international trade the concept of ? |
| A. | official exchange rates |
| B. | complete currency pass through |
| C. | exchange arbitrage |
| D. | trade adjustment assistance |
| Answer» C. exchange arbitrage | |
| 89. |
By value of money is meant? |
| A. | Power of a good to command other things in exchange |
| B. | Power of money to command goods and services in exchange |
| C. | Power of a currency note to command coins in exchange |
| D. | Power of money to command foreign currency |
| Answer» B. Power of money to command goods and services in exchange | |
| 90. |
Share prices will follow a random walk if ? |
| A. | shares are overvalued |
| B. | people behave irrationally when choosing shares |
| C. | markets reflect all available information in a rational way |
| D. | shares are undervalued |
| Answer» D. shares are undervalued | |
| 91. |
The demand for a product would be more inelastic: |
| A. | The greater is the time under consideration |
| B. | The greater is the number of substitutes available to buyers |
| C. | The less expensive is the product in relation to incomes |
| D. | All of the above |
| Answer» B. The greater is the number of substitutes available to buyers | |
| 92. |
Economic planning means: |
| A. | Planning family size by limiting the number of children |
| B. | Making decisions as to what is to be produced, how when and where it is to be produced and to whom it is to be allocated on the basis of comprehensive survey of the economic system as a whole |
| C. | Planning to increase agricultural and industrial production |
| D. | None of the above |
| Answer» B. Making decisions as to what is to be produced, how when and where it is to be produced and to whom it is to be allocated on the basis of comprehensive survey of the economic system as a whole | |
| 93. |
Which of the following assumptions underlying input-output analysis raises about its validity ? |
| A. | The technical coefficients are fixed which means so substitution between inputs occurs |
| B. | - There are no externalities so that the total effect of carrying out several activities is the sum of the separate effects |
| C. | I- Each good is produced by only one industry and each industry produces only one commodity |
| D. | - There is no technical change |
| Answer» B. - There are no externalities so that the total effect of carrying out several activities is the sum of the separate effects | |
| 94. |
Which skills are most likely to be paid for by the employer? |
| A. | General skills |
| B. | Specific skills |
| C. | Educational skills |
| D. | All of the above |
| Answer» B. Specific skills | |
| 95. |
Starting from a balanced budget, for a given tax rate, an increasing in income will cause the government budget to ? |
| A. | move into surplus |
| B. | move into deficit |
| C. | remain unchanged |
| D. | None of the above above |
| Answer» B. move into deficit | |
| 96. |
A check of accounting records conducted by a professional accountant to find out any fraud or discrepancies is termed as: |
| A. | Audit |
| B. | Scrutiny |
| C. | Review |
| D. | Checking |
| Answer» B. Scrutiny | |
| 97. |
Serious mental disorders that often require periods of hospitalization or institutionalization are called____________? |
| A. | neuroses |
| B. | psychoses |
| C. | all of the above |
| Answer» D. | |
| 98. |
Some of the advantages of a market economy include ? |
| A. | all participants get some satisfaction |
| B. | scarce resources are put into goods that are in demand |
| C. | economic output is distributed to those who can pay the price |
| D. | all of the above |
| Answer» E. | |
| 99. |
Secularization will_______________? |
| A. | finally destroy religion in the United States |
| B. | promote secular humanism |
| C. | stimulate new sects and cults to overcome the secularization process |
| D. | be punished by God |
| Answer» D. be punished by God | |
| 100. |
Supply side policies are most appropriate to cure ? |
| A. | Involuntary unemployment |
| B. | Cyclical unemployment |
| C. | Voluntary unemployment |
| D. | A fall in aggregate demand |
| Answer» E. | |