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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 | |