Which of the following statements regarding discrimination is true ?

Bigoted employers are the main source of a persistent discriminatory wage differential in a competitive market

The existence of a wage differential among groups is strong evidence of discrimination in the labour market

Discrimination can only persist in a competitive labour market it customers are willing to pay to maintain the discriminatory practice or the governme

Bigoted employers are the main source of a persistent discriminatory wage differential in a competitive market

Discrimination cannot exist in a competitive labor market

Which of the following statements regarding the impact of population growth on productivity is true ?

Rapid population growth may dilute the capital stock lowering productivity

There is no evidence, yet that rapid population growth stretches natural resources to the point that it limits growth in productivity

Rapid population growth may dilute the capital stock lowering productivity

Rapid population growth may promote technological progress increasing productivity.

Which of the following professionals is most likely to be able to generate the income of a superstar ?

All of these answers participate in markets that could generate a superstar

Which of the following is true regarding the earning of attractive versus unattractive workers ?

Attractive people tend to earn more because attractive people usually have greater human capital

Attractive people tend to earn less because attractive people are viewed as shallow and more self-absorbed and therefore, as less productive

Attractive people tend to earn more because they may actually have a larger value of marginal product

Attractive people tend to earn more because attractive people usually have greater human capital

Attractive people tend to earn less because attractive people usually have less human capital

Which of the following is not part of a worker’s human capital ?

all of these answers are parts of a worker’s human capital

Which of the following is likely to generate a compensating differential ?

One employee is more attractive than another

One employee is more educated than another

One employee works harder than another

One employee is willing to work the nightshift while another is not.

Which of the following is an example of foreign portfolio investment ?

Deutsche Bank of Germany buys some new software from UK Supplier

Toyota builds a new plant in the north of England

EDF of France buys shares in Scottish & Southern Energy of the UK, and Scottish & Southern Energy uses the Proceeds to build a new hydro-electric powe

Deutsche Bank of Germany buys some new software from UK Supplier

JCB builds a new plant near Manchester

Which of the following is an example of a public good ?

apples on a tree in a public park

Which of the following government policies is least likely to increase likely to increase growth in Africa ?

increase expenditure on public education

All of these answers would increase growth

increase restrictions on the importing of American tractors and electronics

Which of the following explanations of wage differentials is not likely to be true ?

Men have more job experience than women

Men have more human capital than women

Employers in competitive markets are bigots

Men have more job experience than women

Which of the following expenditures to enhance productivity is most likely to emit a positive externality ?

Naila pays her university tuition fees.

Indus Motors buys a new drill press

Which of the following describes an increase in technological knowledge ?

A farmer sends his child to agricultural college and the child returns to work on the farm

A farmer hires another day laborer

A farmer discovers that it is better to plant in the spring rather than in the fall

Which of the following could result in women being paid less than men ?

women obtaining less human capital because they don’t plan to work continuously to the age of retirement

Women entering and leaving the labour force to care for children

customers preferring to deal with men

women preferring to work in pleasant clean safe work places

Which of the following best describes the rate of growth in productivity in the United states over the last fifty years ?

Productivity grew slowly from the 1950s through the 1970s and then began to accelerate probably due to advances in computer technology

Productivity growth has been steady over the last 50 years

Productivity has been growing more slowly every decade since world War II

Productivity grew quickly in the 1950s and 1960s more slowly from the early 1970s through 1995 and then quickly again

Productivity grew slowly from the 1950s through the 1970s and then began to accelerate probably due to advances in computer technology

Which of the following are potential solutions to the problem of air pollution?

Grant right of the clean air to citizens so that firms must purchase the right to pollute

Auctions off pollution permits.

Regulate the amount of pollutants that firms can put in the air

When markets fail to allocate resources efficiently, the ultimate source of the problem is usually ?

that prices are not low enough so firms over produce

that prices are not high enough, so people overconsume

that property rights have not been well established

When government employ cost-benefit analysis to help them decide whether to provide a public good, measuring benefits is difficult because ?

there are no benefits to the public since a public good is not excludable

the benefits are infinite because a public good is not rival and an infinite amount of people can consume it at the same time

one can never place a value on human life or the environment

respondents to naires have little incentive to tell the truth.

When a national has very little GDP per person ?

it is doomed to being relatively poor forever

an increase in capital will likely have little impact on output

it has the potential to grow relatively quickly due to the “catch-up-effect”

Unions achieve a higher wage differential the more _____ and the more ______?

members they have, aggressive they behave

inelastic the demand for labour, they can restrict the supply of labour

members they have, aggressive they behave

the economy is growing, people prefer leisure

the productivity is growing vacancies exist

Top footballers tend to earn more than lecturers because ?

footballers give more entertainment

the labor markets are imperfect

top footballers are relatively scarce in relation to lecturers

To increase growth, governments should do all of the following except ?

encourage research and development

encourage foreigners to investment in your country

encourage saving and investment

encourage research and development

Thomas Malthus argued that ?

technological progress will continuously generate improvement in productivity and living standards.

an ever-increasing population is constrained only by the food supply resulting in chronic faminies

technological progress will continuously generate improvement in productivity and living standards.

labor is the only true factor of production

The value of an asset depends upon ?

the present value of the future stream of income it can earn

The Tragedy of the Commons is a parable that illustrates why?

common resources are overconsumed

private goods are under consumed

natural monopolies overproduce goods.

The participation rate in the labour force is affected by ?

changes in tastes between leisure and work

The opportunity cost of acquiring education is ?

Course fees living expenses and textbook

course fees and living expenses

Course fees living expenses and textbook

The opportunity cost of growth is ?

a reduction in current investment

a reduction in current consumption

The marginal revenue product of capital is the ?

change in company’s share price

change in a company’s balance sheet when it acquires new plant

additional value of output from using more capital

change in company’s share price

changing value of the capital stock

The downward sloping marginal physical product of labor is the firm’s ?

Short-run demand curve for labor

marginal revenue product of labor

The difference between gross investment and net investment is ?

depreciation of the existing capital stock

Our standards of living is most closely related to ?

our supply of natural resources because they limit production

our supply of capital because everything of value is produced by machinery

our productivity because our income is equal to what we produce

our supply of natural resources because they limit production

Once a country is wealthy ?

it no longer needs any human capital

capital becomes more productive due to the “catch-up- effect”

it may be harder for it to grow quickly because of the diminishing returns to capital

Many East Asian countries are growing very quickly because ?

They have always been wealthy and will continue to be wealthy, which is known as the “snowball effect”

They save and invest an unusually high percentage of their GDP

They have always been wealthy and will continue to be wealthy, which is known as the “snowball effect”

They are imperialists and have collected wealth from previous victories in war

They have enormous natural resources.

Land will be allocated between competing uses so that ?

the equilibrium rental rate equilibrium total demand with supply

Involuntary unemployment exists if workers ?

will not work because the hours are anti-social

will not work at the offered wage

would work at the going wage but can’t find jobs

will not work because the hours are anti-social

Are not prepared to move house to get the job

In the West Women and non-whites on average receive lower incomes than white men because ?

they tend to work in relatively unskilled jobs

firms are reluctant to invest in training

In order for a market to support superstars it must have which of the following characteristics ?

It must be involved in professional athletics

Every customer must be indifferent to the price they pay, and the seller must be a competitor in the market for the product

Every customer must be willing to pay an enormous amount for the product and the product must be a necessity

Every customer must want the good supplied by the best producer and the technology must exist for the best producer to supply every customer at low co

In a competitive market, which of the following is least, likely to be the source of a persistent discriminatory wage differential ?

All of these answers could be source of a persistent discriminatory wage differential

If workers get a real wage increase this will likely ____ and _____?

encourage the use of less capital, reduce demand for all inputs

encourage the use of more capital in the long run, reduce demand for all inputs

encourage the use of more capital increase demand for all inputs

encourage the use of less capital reduce demand for all inputs

encourage the use of less capital, reduce demand for all inputs

If Toyota builds a new plant in the north of England ?

There has been an increase in foreign portfolio investment in the UK

Once the plant starts producing cars UK GDP will rise less than UK GNP

once the plant starts producing cars UK GDP will rise more than UK GNP

78 + Mcqs in Public Goods in Economics Page 1 McqOptions

1.	Which of the following statements regarding discrimination is true ?
A.	The existence of a wage differential among groups is strong evidence of discrimination in the labour market
B.	Discrimination can only persist in a competitive labour market it customers are willing to pay to maintain the discriminatory practice or the governme
C.	Bigoted employers are the main source of a persistent discriminatory wage differential in a competitive market
D.	Discrimination cannot exist in a competitive labor market
Answer» C. Bigoted employers are the main source of a persistent discriminatory wage differential in a competitive market

Discussion

2.	Which of the following statements regarding the impact of population growth on productivity is true ?
A.	There is no evidence, yet that rapid population growth stretches natural resources to the point that it limits growth in productivity
B.	All of these answers
C.	Rapid population growth may dilute the capital stock lowering productivity
D.	Rapid population growth may promote technological progress increasing productivity.
Answer» C. Rapid population growth may dilute the capital stock lowering productivity

Discussion

3.	Which of the following professionals is most likely to be able to generate the income of a superstar ?
A.	the best professor
B.	the best writer
C.	All of these answers participate in markets that could generate a superstar
D.	The best accountant
E.	the best medical doctor
Answer» C. All of these answers participate in markets that could generate a superstar

Discussion

4.	Which of the following is true regarding the earning of attractive versus unattractive workers ?
A.	Attractive people tend to earn less because attractive people are viewed as shallow and more self-absorbed and therefore, as less productive
B.	Attractive people tend to earn more because they may actually have a larger value of marginal product
C.	Attractive people tend to earn more because attractive people usually have greater human capital
D.	Attractive people tend to earn less because attractive people usually have less human capital
Answer» C. Attractive people tend to earn more because attractive people usually have greater human capital

Discussion

5.	Which of the following is not part of a worker’s human capital ?
A.	education
B.	experience
C.	all of these answers are parts of a worker’s human capital
D.	effort
E.	on the job training
Answer» E. on the job training

Discussion

6.	Which of the following is not a reason why some workers are paid above the equilibrium wage ?
A.	minimum-wage laws
B.	efficiency wages
C.	unions
D.	beauty
Answer» E.

Discussion

7.	Which of the following is likely to generate a compensating differential ?
A.	One employee is more attractive than another
B.	One employee is more educated than another
C.	All of these answers generated
D.	One employee works harder than another
E.	One employee is willing to work the nightshift while another is not.
Answer» F.

Discussion

8.	Which of the following is an example of foreign portfolio investment ?
A.	Toyota builds a new plant in the north of England
B.	EDF of France buys shares in Scottish & Southern Energy of the UK, and Scottish & Southern Energy uses the Proceeds to build a new hydro-electric powe
C.	Deutsche Bank of Germany buys some new software from UK Supplier
D.	JCB builds a new plant near Manchester
Answer» C. Deutsche Bank of Germany buys some new software from UK Supplier

Discussion

9.	Which of the following is an example of a public good ?
A.	hot dogs at a picnic
B.	Whales in the ocean
C.	national defense
D.	apples on a tree in a public park
Answer» D. apples on a tree in a public park

Discussion

10.	Which of the following is an example of a common resource ?
A.	a firework displays
B.	national defense
C.	iron one
D.	a national park
Answer» E.

Discussion

11.	Which of the following government policies is least likely to increase likely to increase growth in Africa ?
A.	increase expenditure on public education
B.	eliminate civil war
C.	All of these answers would increase growth
D.	increase restrictions on the importing of American tractors and electronics
Answer» E.

Discussion

12.	Which of the following explanations of wage differentials is not likely to be true ?
A.	Men have more human capital than women
B.	Employers in competitive markets are bigots
C.	Men have more job experience than women
D.	None of the above
Answer» C. Men have more job experience than women

Discussion

13.	Which of the following expenditures to enhance productivity is most likely to emit a positive externality ?
A.	Megabank buys a new computer
B.	Naila pays her university tuition fees.
C.	OGDC leases a new oil field
D.	Indus Motors buys a new drill press
Answer» C. OGDC leases a new oil field

Discussion

14.	Which of the following describes an increase in technological knowledge ?
A.	A farmer sends his child to agricultural college and the child returns to work on the farm
B.	A farmer hires another day laborer
C.	A farmer buys another tractor
D.	A farmer discovers that it is better to plant in the spring rather than in the fall
Answer» E.

Discussion

15.	Which of the following could result in women being paid less than men ?
A.	women obtaining less human capital because they don’t plan to work continuously to the age of retirement
B.	Women entering and leaving the labour force to care for children
C.	customers preferring to deal with men
D.	women preferring to work in pleasant clean safe work places
E.	all of these answers
Answer» F.

Discussion

16.	Which of the following best describes the rate of growth in productivity in the United states over the last fifty years ?
A.	Productivity growth has been steady over the last 50 years
B.	Productivity has been growing more slowly every decade since world War II
C.	Productivity grew quickly in the 1950s and 1960s more slowly from the early 1970s through 1995 and then quickly again
D.	Productivity grew slowly from the 1950s through the 1970s and then began to accelerate probably due to advances in computer technology
Answer» D. Productivity grew slowly from the 1950s through the 1970s and then began to accelerate probably due to advances in computer technology

Discussion

17.	Which of the following are potential solutions to the problem of air pollution?
A.	Grant right of the clean air to citizens so that firms must purchase the right to pollute
B.	Auctions off pollution permits.
C.	Regulate the amount of pollutants that firms can put in the air
D.	all of these answers
Answer» E.

Discussion

18.	When markets fail to allocate resources efficiently, the ultimate source of the problem is usually ?
A.	government regulation
B.	that prices are not low enough so firms over produce
C.	that prices are not high enough, so people overconsume
D.	that property rights have not been well established
Answer» E.

Discussion

19.	When government employ cost-benefit analysis to help them decide whether to provide a public good, measuring benefits is difficult because ?
A.	there are no benefits to the public since a public good is not excludable
B.	the benefits are infinite because a public good is not rival and an infinite amount of people can consume it at the same time
C.	one can never place a value on human life or the environment
D.	respondents to naires have little incentive to tell the truth.
Answer» E.

Discussion

20.	When a national has very little GDP per person ?
A.	it is doomed to being relatively poor forever
B.	none of these answers
C.	an increase in capital will likely have little impact on output
D.	it has the potential to grow relatively quickly due to the “catch-up-effect”
E.	It must be a small nation.
Answer» E. It must be a small nation.

Discussion

21.	Unions achieve a higher wage differential the more _____ and the more ______?
A.	inelastic the demand for labour, they can restrict the supply of labour
B.	members they have, aggressive they behave
C.	the economy is growing, people prefer leisure
D.	the productivity is growing vacancies exist
Answer» B. members they have, aggressive they behave

Discussion

22.	Top footballers tend to earn more than lecturers because ?
A.	footballers give more entertainment
B.	lecturers are lazy
C.	the labor markets are imperfect
D.	top footballers are relatively scarce in relation to lecturers
Answer» E.

Discussion

23.	To increase growth, governments should do all of the following except ?
A.	encourage foreigners to investment in your country
B.	encourage saving and investment
C.	nationalize major industries
D.	encourage research and development
E.	Promote free trade
Answer» D. encourage research and development

Discussion

24.	Thomas Malthus argued that ?
A.	none of these answers
B.	an ever-increasing population is constrained only by the food supply resulting in chronic faminies
C.	technological progress will continuously generate improvement in productivity and living standards.
D.	labor is the only true factor of production
Answer» C. technological progress will continuously generate improvement in productivity and living standards.

Discussion

25.	The value of an asset depends upon ?
A.	its scrap values
B.	its depreciation
C.	the present value of the future stream of income it can earn
D.	the cost of loans
Answer» D. the cost of loans

Discussion

26.	The Tragedy of the Commons is a parable that illustrates why?
A.	common resources are overconsumed
B.	public goods are underproduced
C.	private goods are under consumed
D.	natural monopolies overproduce goods.
Answer» B. public goods are underproduced

Discussion

27.	The substitution effect of a rise in the price of labour will ____ the quantity of labour and the output, effect will ____ it
A.	increase; increase
B.	increase; reduce
C.	reduce; reduce
D.	reduce; increase
Answer» D. reduce; increase

Discussion

28.	The participation rate in the labour force is affected by ?
A.	higher real wages
B.	lower fixed costs of working
C.	lower non-labour income
D.	changes in tastes between leisure and work
E.	all of the above
Answer» F.

Discussion

29.	The opportunity cost of acquiring education is ?
A.	course fees
B.	course fees and living expenses
C.	the earnings foregone
D.	Course fees living expenses and textbook
Answer» D. Course fees living expenses and textbook

Discussion

30.	The opportunity cost of growth is ?
A.	a reduction in current investment
B.	a reduction in current consumption
C.	a reduction in taxes
D.	a reduction in current saving
Answer» C. a reduction in taxes

Discussion

31.	The most important source of wage differentials are ?
A.	regional variation
B.	unionization
C.	relative danger
D.	skills
Answer» E.

Discussion

32.	The marginal revenue product of capital is the ?
A.	change in a company’s balance sheet when it acquires new plant
B.	additional value of output from using more capital
C.	change in company’s share price
D.	changing value of the capital stock
Answer» C. change in company’s share price

Discussion

33.	The functional distribution of income shows how national income is divided between ?
A.	employees
B.	the population
C.	the factors of production
D.	the working population
Answer» D. the working population

Discussion

34.	The downward sloping marginal physical product of labor is the firm’s ?
A.	Supply of labor
B.	Short-run demand curve for labor
C.	marginal cost of labour
D.	marginal revenue product of labor
Answer» C. marginal cost of labour

Discussion

35.	The difference between gross investment and net investment is ?
A.	depreciation of the existing capital stock
B.	productive investment
C.	dwellings
D.	inventories
Answer» B. productive investment

Discussion

36.	the cost of using capital services is the ?
A.	wage rate of capital
B.	interest charges
C.	marginal capital cost
D.	rental rate for capital
Answer» E.

Discussion

37.	Public goods are difficult for a private market to provide due to ?
A.	the rivalness problem
B.	the public goods problem
C.	the Tragedy of the Commons.
D.	The free-rider problem.
Answer» E.

Discussion

38.	Our standards of living is most closely related to ?
A.	how hard we work:
B.	our supply of capital because everything of value is produced by machinery
C.	our productivity because our income is equal to what we produce
D.	our supply of natural resources because they limit production
Answer» D. our supply of natural resources because they limit production

Discussion

39.	Once a country is wealthy ?
A.	it no longer needs any human capital
B.	capital becomes more productive due to the “catch-up- effect”
C.	none of these answers
D.	it may be harder for it to grow quickly because of the diminishing returns to capital
Answer» E.

Discussion

40.	Many East Asian countries are growing very quickly because ?
A.	They save and invest an unusually high percentage of their GDP
B.	They have always been wealthy and will continue to be wealthy, which is known as the “snowball effect”
C.	They are imperialists and have collected wealth from previous victories in war
D.	They have enormous natural resources.
Answer» B. They have always been wealthy and will continue to be wealthy, which is known as the “snowball effect”

Discussion

41.	Land will be allocated between competing uses so that ?
A.	housing gets priority
B.	industry gets priority
C.	farming gets priority
D.	the equilibrium rental rate equilibrium total demand with supply
Answer» E.

Discussion

42.	It is not considered discrimination when an employer offers different opportunities to individuals that differ only by them ?
A.	productivity
B.	age
C.	sex
D.	race
Answer» B. age

Discussion

43.	Involuntary unemployment exists if workers ?
A.	will not work at the offered wage
B.	would work at the going wage but can’t find jobs
C.	will not work because the hours are anti-social
D.	Are not prepared to move house to get the job
Answer» C. will not work because the hours are anti-social

Discussion

44.	In the West Women and non-whites on average receive lower incomes than white men because ?
A.	they tend to work in relatively unskilled jobs
B.	educational disadvantage
C.	firms are reluctant to invest in training
D.	all of the above
Answer» E.

Discussion

45.	In the short run, the supply of capital is ________ and in the long run will depend on _______?
A.	variable, technology
B.	fixed, expectations
C.	fixed, rental rate of capital
D.	variable, interest rates
Answer» D. variable, interest rates

Discussion

46.	In order for a market to support superstars it must have which of the following characteristics ?
A.	It must be involved in professional athletics
B.	Every customer must be indifferent to the price they pay, and the seller must be a competitor in the market for the product
C.	Every customer must be willing to pay an enormous amount for the product and the product must be a necessity
D.	Every customer must want the good supplied by the best producer and the technology must exist for the best producer to supply every customer at low co
Answer» E.

Discussion

47.	In a competitive market, which of the following is least, likely to be the source of a persistent discriminatory wage differential ?
A.	All of these answers could be source of a persistent discriminatory wage differential
B.	the customer
C.	the government
D.	the employer
Answer» E.

Discussion

48.	If workers get a real wage increase this will likely ____ and _____?
A.	encourage the use of more capital in the long run, reduce demand for all inputs
B.	encourage the use of more capital increase demand for all inputs
C.	encourage the use of less capital reduce demand for all inputs
D.	encourage the use of less capital, reduce demand for all inputs
Answer» D. encourage the use of less capital, reduce demand for all inputs

Discussion

49.	If two jobs require the same amount of skills and experience the job that pays the most is most likely to be the one that is ?
A.	unpleasant
B.	all these answers
C.	safe
D.	fun
E.	easy
Answer» B. all these answers

Discussion

50.	If Toyota builds a new plant in the north of England ?
A.	None of these answers
B.	There has been an increase in foreign portfolio investment in the UK
C.	Once the plant starts producing cars UK GDP will rise less than UK GNP
D.	once the plant starts producing cars UK GDP will rise more than UK GNP
Answer» E.

Discussion

Explore topic-wise MCQs in Economics.

Which of the following statements regarding discrimination is true ?

Which of the following statements regarding the impact of population growth on productivity is true ?

Which of the following professionals is most likely to be able to generate the income of a superstar ?

Which of the following is true regarding the earning of attractive versus unattractive workers ?

Which of the following is not part of a worker’s human capital ?

Which of the following is not a reason why some workers are paid above the equilibrium wage ?

Which of the following is likely to generate a compensating differential ?

Which of the following is an example of foreign portfolio investment ?

Which of the following is an example of a public good ?

Which of the following is an example of a common resource ?

Which of the following government policies is least likely to increase likely to increase growth in Africa ?

Which of the following explanations of wage differentials is not likely to be true ?

Which of the following expenditures to enhance productivity is most likely to emit a positive externality ?

Which of the following describes an increase in technological knowledge ?

Which of the following could result in women being paid less than men ?

Which of the following best describes the rate of growth in productivity in the United states over the last fifty years ?

Which of the following are potential solutions to the problem of air pollution?

When markets fail to allocate resources efficiently, the ultimate source of the problem is usually ?

When government employ cost-benefit analysis to help them decide whether to provide a public good, measuring benefits is difficult because ?

When a national has very little GDP per person ?

Unions achieve a higher wage differential the more _____ and the more ______?

Top footballers tend to earn more than lecturers because ?

To increase growth, governments should do all of the following except ?

Thomas Malthus argued that ?

The value of an asset depends upon ?

The Tragedy of the Commons is a parable that illustrates why?

The substitution effect of a rise in the price of labour will ____ the quantity of labour and the output, effect will ____ it

The participation rate in the labour force is affected by ?

The opportunity cost of acquiring education is ?

The opportunity cost of growth is ?

The most important source of wage differentials are ?

The marginal revenue product of capital is the ?

The functional distribution of income shows how national income is divided between ?

The downward sloping marginal physical product of labor is the firm’s ?

The difference between gross investment and net investment is ?

the cost of using capital services is the ?

Public goods are difficult for a private market to provide due to ?

Our standards of living is most closely related to ?

Once a country is wealthy ?

Many East Asian countries are growing very quickly because ?

Land will be allocated between competing uses so that ?

It is not considered discrimination when an employer offers different opportunities to individuals that differ only by them ?

Involuntary unemployment exists if workers ?

In the West Women and non-whites on average receive lower incomes than white men because ?

In the short run, the supply of capital is ________ and in the long run will depend on _______?

In order for a market to support superstars it must have which of the following characteristics ?

In a competitive market, which of the following is least, likely to be the source of a persistent discriminatory wage differential ?

If workers get a real wage increase this will likely ____ and _____?

If two jobs require the same amount of skills and experience the job that pays the most is most likely to be the one that is ?

If Toyota builds a new plant in the north of England ?

Unions achieve a higher wage differential the more _ and the more __?

The substitution effect of a rise in the price of labour will the quantity of labour and the output, effect will it

In the short run, the supply of capital is __ and in the long run will depend on _?

If workers get a real wage increase this will likely and _?