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Economics MCQs with Explanations

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991EconomicsMedium

For a normal good?

AThe price elasticity of demand is negative the income elasticity of demand is positive

BThe price elasticity of demand is negative the income elasticity of demand is negative

CThe price elasticity of demand is positive; the income elasticity of demand is positive

DThe price elasticity of demand is positive the income elasticity of demand is negative

Correct answer

A. The price elasticity of demand is negative the income elasticity of demand is positive

Explanation

The correct answer is The price elasticity of demand is negative the income elasticity of demand is positive.

992EconomicsMedium

In a competitive economy, a worker earns an income equivalent to?

AThe substitutability of labor to capital

BThe amount of brain drain

CMarginal utility

DMarginal Product

Correct answer

D. Marginal Product

Explanation

The correct answer is Marginal Product.

993EconomicsMedium

Which of the following countries are not newly industrialized countries (NICs)?

ANorth Korea

BSingapore

CHong kong

DTaiwan

Correct answer

A. North Korea

Explanation

The correct answer is North Korea.

994EconomicsMedium

There is inequality among the Siriono of Bolivia in that________?

Athe elder females make all the group,s rules

Bnone of the above

Cthere is a priestly caste

Dthe families of the best hunters are permitted to hoard food

Correct answer

B. none of the above

Explanation

The correct answer is none of the above.

995EconomicsMedium

Copper is an example of?

Aphysical capital

Ba renewable natural resource

Ca non-renewable natural resource

Dtechnology

Correct answer

C. a non-renewable natural resource

Explanation

The correct answer is a non-renewable natural resource.

996EconomicsMedium

The price mechanism does not act as a?

ARationing device

BIndicator of income

CIncentive

DSignal

Correct answer

B. Indicator of income

Explanation

The correct answer is Indicator of income.

997EconomicsMedium

A financial intermediary is a middleperson between?

Ahusbands and wives.

Bbuyers and sellers

Clabor unions and firms

Dborrowers and lenders.

Correct answer

D. borrowers and lenders.

Explanation

The correct answer is borrowers and lenders..

998EconomicsMedium

Skilled labor is relatively scarce because?

Atoo few student places in higher education

Bthere are too few teachers

Cit is costly to acquire human capital

Dteachers’ salaries are too low

Correct answer

C. it is costly to acquire human capital

Explanation

The correct answer is it is costly to acquire human capital.

999EconomicsMedium

Supply side policies are most appropriate to cure?

AA fall in aggregate demand

BVoluntary unemployment

CInvoluntary unemployment

DCyclical unemployment

Correct answer

A. A fall in aggregate demand

Explanation

The correct answer is A fall in aggregate demand.

1000EconomicsMedium

Suppose that ABC publishing sells an economics textbook and accompanying study guide. Raheel is willing to pay Rs75 for the text and Rs15 for the study guide. Mariam is willing to spend Rs60 for the text and Rs25 for the study guide. Suppose both the book and study guide have a zero marginal cost of study production. If ABC publishing engages in tying the two products its best strategy is to charge a combined price of?

ARs 75

BRs 60

CRs 90

DRs 85

Correct answer

D. Rs 85

Explanation

The correct answer is Rs 85.

For a normal good?

AThe price elasticity of demand is negative the income elasticity of demand is positive

BThe price elasticity of demand is negative the income elasticity of demand is negative

CThe price elasticity of demand is positive; the income elasticity of demand is positive

DThe price elasticity of demand is positive the income elasticity of demand is negative

Correct answer

A. The price elasticity of demand is negative the income elasticity of demand is positive

Explanation

The correct answer is The price elasticity of demand is negative the income elasticity of demand is positive.