MCQOPTIONS
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MCQOPTIONS
This section includes 71 Mcqs, each offering curated multiple-choice questions to sharpen your Economics Mcqs knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
On a graph, a positive linear relationship___________________? |
| A. | moves down to the right |
| B. | moves up to the left |
| C. | moves up to the right |
| D. | moves down to the left |
| Answer» D. moves down to the left | |
| 52. |
The public sector includes ? |
| A. | Investors owning companies |
| B. | Government ownership of assets |
| C. | Market forces of supply and demand |
| D. | All trade via barter |
| Answer» E. | |
| 53. |
If you income during one year is Rs10,000 and the following year it is Rs12,000 then it has grown by ________________? |
| A. | 20% |
| B. | 2% |
| C. | 12% |
| D. | 16% |
| Answer» B. 2% | |
| 54. |
The Phillips curve shows that ? |
| A. | the business cycle has been eliminated |
| B. | an increase in inflation temporarily increases unemployment. |
| C. | inflation and unemployment are unrelated in the short run. |
| D. | a decrease in inflation temporarily increases unemployment. |
| E. | none of these |
| Answer» E. none of these | |
| 55. |
In a command (planned) economy ? |
| A. | The price mechanism acts as an incentive |
| B. | Resources are allocated by market forces |
| C. | Individual firms make decisions for themselves about what to produce and how to produce it |
| D. | The public sector is large |
| Answer» C. Individual firms make decisions for themselves about what to produce and how to produce it | |
| 56. |
The sacrifice involved when you choose a particular course of action is called the ? |
| A. | Alternative |
| B. | Opportunity cost |
| C. | Consumer cost |
| D. | Producer cost |
| Answer» C. Consumer cost | |
| 57. |
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 | |
| 58. |
Which of the following situations describes the greatest market power ? |
| A. | Subaru’s impact on the price f cars |
| B. | a farmer’s impact on the price of corn |
| C. | Microsoft’s impact on the price of desktop operating systems |
| D. | a student’s impact on college tuition |
| Answer» D. a student’s impact on college tuition | |
| 59. |
The free market involves ? |
| A. | The free provision of products |
| B. | The Subsidizing of products by the government |
| C. | Market forces of supply and demand |
| D. | All trade via barter |
| Answer» D. All trade via barter | |
| 60. |
Which of the following activities is most likely to produce an externality? |
| A. | A student eats a hamburger in the student union. |
| B. | A student reads a novel for pleasure |
| C. | A student sits at home and watches T.V |
| D. | A student has a party in her room in the student hall of residence. |
| Answer» E. | |
| 61. |
Raising taxes and increasing welfare payments ? |
| A. | reduces market power |
| B. | Proves that there is such a thing as a free lunch |
| C. | improves efficiency at the expense of equity. |
| D. | improves equity at the expense of efficiency. |
| Answer» E. | |
| 62. |
Which of the following involves a trade – off ? |
| A. | Taking a nap |
| B. | All of these answers involve trade-offs |
| C. | Watching a football game on Saturday afternoon |
| D. | Going to university |
| Answer» C. Watching a football game on Saturday afternoon | |
| 63. |
Economics is the study of ? |
| A. | how society manages its unlimited resource |
| B. | how to reduce our wants until we are satisfied. |
| C. | how to fully satisfy our unlimited wants |
| D. | how to avoid having to make trade-offs |
| Answer» C. how to fully satisfy our unlimited wants | |
| 64. |
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. | |
| 65. |
The circular flow of goods and incomes shows the relationship between? |
| A. | Wages and salaries. |
| B. | income and money |
| C. | goods and services |
| D. | firms and households |
| Answer» C. goods and services | |
| 66. |
In a planned or command economy, all the economics decisions are taken by the ? |
| A. | Consumers |
| B. | voters |
| C. | government |
| D. | Workers |
| Answer» D. Workers | |
| 67. |
Human wants are_______________? |
| A. | Always fixed |
| B. | Limited |
| C. | Unlimited |
| D. | Likely to decrease over time |
| Answer» D. Likely to decrease over time | |
| 68. |
Resources in an economy ? |
| A. | Are always found |
| B. | Can never decease |
| C. | Always increase over time |
| D. | Are limited at any moment in time |
| Answer» E. | |
| 69. |
The sacrifice involved when you choose a particular course of action is called the? |
| A. | Alternative |
| B. | Opportunity cost |
| C. | Consumer cost |
| D. | Producer cost |
| Answer» C. Consumer cost | |
| 70. |
Which of the following is not one of the basic economic s ? |
| A. | What to produce |
| B. | Who to produce for |
| C. | How to produce |
| D. | How to maximize economic growth |
| Answer» E. | |
| 71. |
The concept of opportunity cost ? |
| A. | is relevant only for a capitalist economy like the United States. |
| B. | Suggests a major increase in public health care spending means an expansion in other areas will be harder to achieve |
| C. | Suggests all our wants can be achieved |
| D. | Would be relevant if we eliminated poverty |
| Answer» C. Suggests all our wants can be achieved | |