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Economics MCQs with Explanations

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1EconomicsMedium

The attitude of some Americans toward the minorities in their midst shows________?

Athe importance of culture

Bcultural superiority

Ccultural relativity

Dculture shock

Correct answer

A. the importance of culture

Explanation

The correct answer is the importance of culture.

2EconomicsMedium

Government levy tax on imports and exports What this tax is called?

AExercise Duty

BFreight

CTariff

DCustom

Correct answer

C. Tariff

Explanation

The correct answer is Tariff.

3EconomicsMedium

Suppose that the supply curve of tin is highly inelastic. If the demand curve of tin decrease and increase cyclically along the supply curve of tin, then in this market the size of the quantity fluctuation will bathe size of the price fluctuations?

Arelatively less than

Brelatively greater than

Cthe same as

DAny of the above

Correct answer

A. relatively less than

Explanation

The correct answer is relatively less than.

4EconomicsMedium

In 1980 the U.S imposed export quotas on grain sold to the Soviet Union in response to its armed invasion of Afghanistan if other nations do not increase grain exports to the soviets all the following would likely occur except?

AConsumer surplus would decrease for the soviets

BGrains prices would rise in the united States

CExport revenues would decrease for U.S producers

DGrain prices would rise in the Soviet union

Correct answer

B. Grains prices would rise in the united States

Explanation

The correct answer is Grains prices would rise in the united States.

5EconomicsMedium

If people can borrow and lend to perfectly smooth out their lifetime living standards, then?

Alife-cycle income is a good measure of the distribution of living standards.

Bpermanent income is a good measure of the distribution of living standards.

Ccurrent annual income is a good measure of the distribution of living standards.

Dnone of these answers

Etransitory income is a good measure of the distribution of living standards

Correct answer

B. permanent income is a good measure of the distribution of living standards.

Explanation

The correct answer is permanent income is a good measure of the distribution of living standards..

6EconomicsMedium

Investment funds are established for the supports of institutions such as hospitals investment is called?

AEndowment funds

BAttached funds

CCharity funds

DInvestment fund

Correct answer

A. Endowment funds

Explanation

The correct answer is Endowment funds.

7EconomicsMedium

The ethnic groups among whom arranged marriages are common include________?

AMuslim

BAll of the above

CIndians (natives of India)

DHasidic Jews

Correct answer

B. All of the above

Explanation

The correct answer is All of the above.

8EconomicsMedium

Which of the following countries leads in the production of Zinc?

AGermany

BUSA

CCanada

DRussia

Correct answer

C. Canada

Explanation

The correct answer is Canada.

9EconomicsMedium

A demand-side theory that focuses on the role of money to finance aggregate demand is termed________?

AReaganism

Bcash and carry

Cthe gold standard

Dmonetarism

Correct answer

D. monetarism

Explanation

The correct answer is monetarism.

10EconomicsMedium

It is the function of Congress to________?

Aunanimously approve treaties

Bconduct foreign affairs

Cvote funds for conducting foreign affairs

Ddecide the constitutionality of specific laws

Correct answer

C. vote funds for conducting foreign affairs

Explanation

The correct answer is vote funds for conducting foreign affairs.

In 1980 the U.S imposed export quotas on grain sold to the Soviet Union in response to its armed invasion of Afghanistan if other nations do not increase grain exports to the soviets all the following would likely occur except?

AConsumer surplus would decrease for the soviets

BGrains prices would rise in the united States

CExport revenues would decrease for U.S producers

DGrain prices would rise in the Soviet union

Correct answer

B. Grains prices would rise in the united States

Explanation

The correct answer is Grains prices would rise in the united States.

If people can borrow and lend to perfectly smooth out their lifetime living standards, then?

Alife-cycle income is a good measure of the distribution of living standards.

Bpermanent income is a good measure of the distribution of living standards.

Ccurrent annual income is a good measure of the distribution of living standards.

Dnone of these answers

Etransitory income is a good measure of the distribution of living standards

Correct answer

B. permanent income is a good measure of the distribution of living standards.

Explanation

The correct answer is permanent income is a good measure of the distribution of living standards..