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Economics MCQs with Explanations

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1111EconomicsMedium

Under a system of floating exchange rates relatively low productivity and high inflation rates in the United States results in a (an)?

Aincrease in the demand for foreign currency an increase in the supply of foreign currency and a appreciation in the dollar

Bdecrease in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar

Cincrease in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar

Ddecrease in the demand for foreign currency and increase in the supply of foreign currency and a appreciation in the dollar

Correct answer

C. increase in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar

Explanation

The correct answer is increase in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar.

1112EconomicsMedium

If two countries A and B are member of a currency union and there is a shift in consumer preferences away from the goods of country A and towards those of country B than which one of the following would help to offset the effect of the resulting changes in aggregate demand in A and B on inflation and unemployment in the tow countries?

AAn increase in government spending in country (A)

BA depreciation in the foreign exchange value of the common currency

CA low degree of capital mobility between the two countries

DA high degree of labour mobility between the tow countries

Correct answer

D. A high degree of labour mobility between the tow countries

Explanation

The correct answer is A high degree of labour mobility between the tow countries.

1113EconomicsMedium

When firm build in Organizational slack they do this in order to?

Aminimize conflict within the firm

Bmaximize growth.

Cboth options one and three

Dcope with unforeseen changes

Correct answer

C. both options one and three

Explanation

The correct answer is both options one and three.

1114EconomicsMedium

A tax for which high income taxpayers pay a smaller fraction of their income than do low income taxpayers is known as?

Aa proportional tax

Ba progressive tax

Can equitable tax

Da regressive tax

Correct answer

D. a regressive tax

Explanation

The correct answer is a regressive tax.

1115EconomicsMedium

Term the exclusive right of one or more persons to carry on some branch of trade of manufacture It is a sole power of dealing in something?

AMonotony

BMonopoly

CEncroachment

DUnipolarity

Correct answer

B. Monopoly

Explanation

The correct answer is Monopoly.

1116EconomicsMedium

Joseph Schumpeter is the exceptional economist who links the entrepreneur to?

Aresource management

Boligopolistic capitalism

Cland and labor

Dinnovation

Correct answer

D. innovation

Explanation

The correct answer is innovation.

1117EconomicsMedium

Defense mechanisms function to________?

Adeflect anxiety

Bdeceive sexual targets

Cward off sexual advances

Dprotect the superego

Correct answer

A. deflect anxiety

Explanation

The correct answer is deflect anxiety.

1118EconomicsMedium

The substitution effect of higher wages suggests that as the wage rate increases?

Aleisure becomes more expensive and households buy less of it

Bleisure becomes more expensive and households buy more of it

Cleisure becomes less expensive and households buy more of it

Dleisure becomes less expensive and households buy less of it.

Correct answer

A. leisure becomes more expensive and households buy less of it

Explanation

The correct answer is leisure becomes more expensive and households buy less of it.

1119EconomicsMedium

Maximum profit can be shown on a diagram using?

Athe AC and AR curves

Bthe MR and MC curves

Cthe MR and AR curves

Dthe AC and MC curves

Correct answer

A. the AC and AR curves

Explanation

The correct answer is the AC and AR curves.

1120EconomicsMedium

The transition from rural living to city living occurred because________?

Aof BOTH a decrease in the need for farm workers and the fact that factories were located in cities

Bfactories were concentrated in cities

Cthere was less need for farm workers as agriculture became mechanized

Dsocial change dictated a new fad urban living

Correct answer

A. of BOTH a decrease in the need for farm workers and the fact that factories were located in cities

Explanation

The correct answer is of BOTH a decrease in the need for farm workers and the fact that factories were located in cities.

Under a system of floating exchange rates relatively low productivity and high inflation rates in the United States results in a (an)?

Aincrease in the demand for foreign currency an increase in the supply of foreign currency and a appreciation in the dollar

Bdecrease in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar

Cincrease in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar

Ddecrease in the demand for foreign currency and increase in the supply of foreign currency and a appreciation in the dollar

Correct answer

C. increase in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar

Explanation

The correct answer is increase in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar.

If two countries A and B are member of a currency union and there is a shift in consumer preferences away from the goods of country A and towards those of country B than which one of the following would help to offset the effect of the resulting changes in aggregate demand in A and B on inflation and unemployment in the tow countries?

AAn increase in government spending in country (A)

BA depreciation in the foreign exchange value of the common currency

CA low degree of capital mobility between the two countries

DA high degree of labour mobility between the tow countries

Correct answer

D. A high degree of labour mobility between the tow countries

Explanation

The correct answer is A high degree of labour mobility between the tow countries.

The substitution effect of higher wages suggests that as the wage rate increases?

Aleisure becomes more expensive and households buy less of it

Bleisure becomes more expensive and households buy more of it

Cleisure becomes less expensive and households buy more of it

Dleisure becomes less expensive and households buy less of it.

Correct answer

A. leisure becomes more expensive and households buy less of it

Explanation

The correct answer is leisure becomes more expensive and households buy less of it.

The transition from rural living to city living occurred because________?

Aof BOTH a decrease in the need for farm workers and the fact that factories were located in cities

Bfactories were concentrated in cities

Cthere was less need for farm workers as agriculture became mechanized

Dsocial change dictated a new fad urban living

Correct answer

A. of BOTH a decrease in the need for farm workers and the fact that factories were located in cities

Explanation

The correct answer is of BOTH a decrease in the need for farm workers and the fact that factories were located in cities.