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Economics MCQs with Explanations

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1181EconomicsMedium

If a product is a vablen good?

ADemand is inversely related to price

BDemand is directly related to price

CDemand is inversely related to the price of substitutes

DDemand is inversely related to income

Correct answer

B. Demand is directly related to price

Explanation

The correct answer is Demand is directly related to price.

1182EconomicsMedium

How has the relative gap between GNP per capita for Western Europe and GNP per capita for African less-developed countries changed from the late nineteenth century to the present?

Adeclined

Bcannot be determined

Cincreased

Dremained the same

Correct answer

C. increased

Explanation

The correct answer is increased.

1183EconomicsMedium

The Lorenz curve shows?

Athe change in GDP per capita over time

Bpatterns of poverty between developed and developing countries

Cthe poorest’s income shares fall in the early stages of growth

Dincome concentration relative to a 45-degree line

Correct answer

B. patterns of poverty between developed and developing countries

Explanation

The correct answer is patterns of poverty between developed and developing countries.

1184EconomicsMedium

Which of the following would shift the long-run Phillips curve to the right?

AAn increase in the minimum wage

BAn increase in the price of foreign oil

CAn increase in the aggregate demand

DAn increase in the expected inflation

Correct answer

A. An increase in the minimum wage

Explanation

The correct answer is An increase in the minimum wage.

1185EconomicsMedium

________ are ads that appear while subscribers are surfing online services or Web sites, including banners, pop-up windows, tickers and roadblocks?

AOnline ads

BOnline broadcasts

COnline infomercials

DOnline bullets

Correct answer

A. Online ads

Explanation

The correct answer is Online ads.

1186EconomicsMedium

The formula to calculate Passche price index is (o is the base year and n is the given year)?

AP = ΣPnqn/Σpoqo

BP = ΣPnqn/Σpoqn

CP = ΣPoqo/Σpnqn

DP = ΣPnqo/Σpoqo

Correct answer

B. P = ΣPnqn/Σpoqn

Explanation

The correct answer is P = ΣPnqn/Σpoqn.

1187EconomicsMedium

Which of the following can the government not use directly to control the economy?

APay rates within the private sector

BBenefits available for the unemployed and sick

Cinvestment in education

Dpay rates in the public sector

Correct answer

A. Pay rates within the private sector

Explanation

The correct answer is Pay rates within the private sector.

1188EconomicsMedium

Which branch of accounting provides information to help the management of a firm evaluate production costs and efficiency?

AUltra-country economic risk

BOutcome risk

CEfficient Account

DCost Accounting

Correct answer

D. Cost Accounting

Explanation

The correct answer is Cost Accounting.

1189EconomicsMedium

The media present gender roles________?

Aidealistically

Brealistically

Cstereotypically

Daccording to Victorian model

Correct answer

C. stereotypically

Explanation

The correct answer is stereotypically.

1190EconomicsMedium

Potential growth measures?

AThe present rate of growth of an economy

BThe rate of growth that could be achieved if resources were fully employed

Cthe growth of the fastest economy in the world

DThe fastest growth an economy has ever achieved

Correct answer

C. the growth of the fastest economy in the world

Explanation

The correct answer is the growth of the fastest economy in the world.

The Lorenz curve shows?

Athe change in GDP per capita over time

Bpatterns of poverty between developed and developing countries

Cthe poorest’s income shares fall in the early stages of growth

Dincome concentration relative to a 45-degree line

Correct answer

B. patterns of poverty between developed and developing countries

Explanation

The correct answer is patterns of poverty between developed and developing countries.

Potential growth measures?

AThe present rate of growth of an economy

BThe rate of growth that could be achieved if resources were fully employed

Cthe growth of the fastest economy in the world

DThe fastest growth an economy has ever achieved

Correct answer

C. the growth of the fastest economy in the world

Explanation

The correct answer is the growth of the fastest economy in the world.