MCQOPTIONS
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MCQOPTIONS
This section includes 70 Mcqs, each offering curated multiple-choice questions to sharpen your Economics knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
Human wants are_______________? |
| A. | Always fixed |
| B. | Limited |
| C. | Unlimited |
| D. | Likely to decrease over time |
| Answer» D. Likely to decrease over time | |
| 52. |
High and persistent inflation is caused by ? |
| A. | unions increasing wages too much |
| B. | OPEC raising the price of oil too much |
| C. | governments increasing the quantity of money too much |
| D. | regulations raising the cost of production too much |
| Answer» B. OPEC raising the price of oil too much | |
| 53. |
Foreign trade ? |
| A. | increase the scarcity of resources. |
| B. | makes a country more equitable. |
| C. | allows a country to have a greater variety of products at a lower cost than if it tried to produce everything to home. |
| D. | None of these |
| Answer» D. None of these | |
| 54. |
Economics is the study of ? |
| A. | Production technology |
| B. | Consumption decisions |
| C. | how society decides what how and for whom to produce |
| D. | the best way to run society |
| Answer» D. the best way to run society | |
| 55. |
Data are important in economics because _________ and ____________? |
| A. | they suggest relationships for explanation, allow testing of hypotheses |
| B. | they can be used for tables, they can be graphed |
| C. | they can be used in computers governments use them |
| D. | they provide interesting information can be summarized |
| Answer» B. they can be used for tables, they can be graphed | |
| 56. |
________ and ___________ do not directly affect the demand curve ? |
| A. | the price of related goods consumer income |
| B. | consumer incomes, tastes |
| C. | the costs of production bank opening hours |
| D. | the price of related goods preferences |
| Answer» D. the price of related goods preferences | |
| 57. |
An increase in the price of beef providers information which ? |
| A. | provides no information because prices in a market system are managed by planning boards. |
| B. | tells consumers to buy less pork |
| C. | tells producers to produce more beef. |
| D. | tells consumers to buy more beef. |
| Answer» D. tells consumers to buy more beef. | |
| 58. |
An increase in consumer income will increase demand for a _________ but decrease demand for a? |
| A. | substitute good, inferior good |
| B. | normal good inferior good |
| C. | inferior good normal good |
| D. | normal good, complementary good |
| Answer» C. inferior good normal good | |
| 59. |
Aggregate supply is the total amount ? |
| A. | of labor supplied by all households. |
| B. | Produced by the government. |
| C. | of goods and services produced in an economy. |
| D. | of products produced by a given industry. |
| Answer» D. of products produced by a given industry. | |
| 60. |
A supply curve is directly affected by ? |
| A. | technology |
| B. | input costs |
| C. | government regulation |
| D. | all of the above |
| Answer» E. | |
| 61. |
A student chooses to study because the marginal benefit is greater than the ______________ cost? |
| A. | average |
| B. | expected |
| C. | total |
| D. | marginal |
| Answer» E. | |
| 62. |
A straight-line diagram can be drawn knowing the ________ and ________? |
| A. | vertical axis and horizontal axis |
| B. | intercept and slope |
| C. | scale and slope |
| D. | intercept and scale |
| Answer» D. intercept and scale | |
| 63. |
A recession is ? |
| A. | a period of declining prices. |
| B. | a period of declining unemployment |
| C. | a period during which aggregate output declines. |
| D. | a period of very rapidly declining prices. |
| Answer» D. a period of very rapidly declining prices. | |
| 64. |
A real value can be derived from a nominal value by ? |
| A. | adjusting for changes over time |
| B. | adjusting for data collection errors |
| C. | adjusting for population changes |
| D. | adjusting or changes in prices |
| Answer» E. | |
| 65. |
A rational person does not act unless ? |
| A. | the action is ethical |
| B. | The action produces marginal costs that exceed marginal benefits. |
| C. | The action produces marginal benefits that exceed marginal costs. |
| D. | The action makes money for the person. |
| Answer» D. The action makes money for the person. | |
| 66. |
A mixed economy ? |
| A. | Has supply but not demand |
| B. | Has demand but not supply |
| C. | Has supply and demand |
| D. | Has market forces and government intervention |
| Answer» E. | |
| 67. |
A market can accurately be described as_________________? |
| A. | a place to buy things |
| B. | a place to sell things |
| C. | the process by which prices adjust to reconcile the allocation of resources |
| D. | a place where buyers and sellers meet |
| Answer» D. a place where buyers and sellers meet | |
| 68. |
A graph showing all the combinations of goods and services that can be produced if all of society’s resources are used efficiently is a ? |
| A. | capital consumption frontier. |
| B. | Lorenz curve |
| C. | Circular-flow diagram |
| D. | Production possibility curve |
| Answer» E. | |
| 69. |
A demand curve can shift because changing ? |
| A. | incomes |
| B. | prices of related goods |
| C. | tastes |
| D. | all of the above |
| Answer» E. | |
| 70. |
-7-+47-+45-+-+Since people respond to incentives, we would expect that if the average salary of accountants increases by 50% while the average salary of teachers increase by 20% then ? |
| A. | Fewer students will take degree courses in education and more will take accounting courses. |
| B. | fewer students will take degree courses in education and more will take accounting courses |
| C. | fewer students will attend university |
| D. | None of these |
| Answer» C. fewer students will attend university | |