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Economics MCQs with Explanations

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91EconomicsMedium

A society’s economic system is largely determined by its concept of________?

Atruth

Bjustice

Chappiness

Dproperty

Correct answer

D. property

Explanation

The correct answer is property.

92EconomicsMedium

When imports from a higher-cost supplier within a customs union replace imports from a lower-cost supplier outside the custom union, there exists?

Atrade creation

Btrade diversion

Ccomprehensive welfare effects

Ddynamic welfare effects

Correct answer

B. trade diversion

Explanation

The correct answer is trade diversion.

93EconomicsMedium

Life expectancy is________?

Aabout the same across social classes

Blower for the lower classes

Clower for the upper-middle class

Dlower for the middle class

Correct answer

A. about the same across social classes

Explanation

The correct answer is about the same across social classes.

94EconomicsMedium

A fixed exchange rate, plus perfect capital mobility ________ the scope for monetary policy?

Afacilitates

Bencourages

Cundermines

Denhances

Correct answer

C. undermines

Explanation

The correct answer is undermines.

95EconomicsMedium

In which of the following cases is the assumption most reasonable?

ATo address the impact of money growth on inflation, an economist assumes that money is strictly coins.

BTo model the benefits of trade. an economist assumes that there are two people and two goods

CTo estimate the speed at which a beach ball falls, a physicist assumes that if falls in a vacuum.

DTo address the impact to taxes on income distribution an economist assumes that everyone earns the same income.

Correct answer

B. To model the benefits of trade. an economist assumes that there are two people and two goods

Explanation

The correct answer is To model the benefits of trade. an economist assumes that there are two people and two goods.

96EconomicsMedium

A form of treatment for severe mental disorders that has been largely abandoned is________?

Ahypnotherapy

Bpsychosurgery

Cpsychotherapy

Delectroconvulsive shock therapy

Correct answer

B. psychosurgery

Explanation

The correct answer is psychosurgery.

97EconomicsMedium

Which of the following is an agricultural produce of Taiwan?

ACoffee

BNone of the above

CRice

DMaize

Correct answer

C. Rice

Explanation

The correct answer is Rice.

98EconomicsMedium

Rate of growth of an economy is measured in terms of________?

ANational income

BPer capita income

CIndustrial development

DNumber of people who have been lifted above the poverty line

Correct answer

A. National income

Explanation

The correct answer is National income.

99EconomicsMedium

A tariff causes domestic firms to ________ and consumers to?

AOverproduce, overconsume

Boverproduce, under consume

Cunderproduce, overconsume

Dunderproduce, under consume

Correct answer

B. overproduce, under consume

Explanation

The correct answer is overproduce, under consume.

100EconomicsMedium

An example of an expansionary monetary policy is?

Aa reduction in the taxes banks pay on their profits.

Ban increase in the discount rate

Cthe Central bank buying government securities in the open market

Dan increase in the required reserve ratio

Correct answer

C. the Central bank buying government securities in the open market

Explanation

The correct answer is the Central bank buying government securities in the open market.

In which of the following cases is the assumption most reasonable?

ATo address the impact of money growth on inflation, an economist assumes that money is strictly coins.

BTo model the benefits of trade. an economist assumes that there are two people and two goods

CTo estimate the speed at which a beach ball falls, a physicist assumes that if falls in a vacuum.

DTo address the impact to taxes on income distribution an economist assumes that everyone earns the same income.

Correct answer

B. To model the benefits of trade. an economist assumes that there are two people and two goods

Explanation

The correct answer is To model the benefits of trade. an economist assumes that there are two people and two goods.

An example of an expansionary monetary policy is?

Aa reduction in the taxes banks pay on their profits.

Ban increase in the discount rate

Cthe Central bank buying government securities in the open market

Dan increase in the required reserve ratio

Correct answer

C. the Central bank buying government securities in the open market

Explanation

The correct answer is the Central bank buying government securities in the open market.