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Economics MCQs with Explanations

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1241EconomicsMedium

International trade is based on the nation that?

AGoods are more mobile internationally than are resources

BResources are more mobile internationally that are goods

CA country’s exports should always exceed its imports

DDifferent currencies are an obstacle to international trade

Correct answer

A. Goods are more mobile internationally than are resources

Explanation

The correct answer is Goods are more mobile internationally than are resources.

1242EconomicsMedium

Roberto and Thomas live in a university hall of residence Roberto values playing loud music at a value of €100. Thomas values Pease and quiet at a value of €150. Which of the following statements is true?

AIt is efficient for Roberto to stop playing loud music only if Roberto has the property right to play loud music

BIt is efficient for Roberto to stop playing loud music regardless of who has the property right to the level of sound

CIt is efficient for Roberto to stop playing loud music only if Thomas has the property right to peace and quiet

Dit is efficient for Roberto to continue to play loud music

Correct answer

B. It is efficient for Roberto to stop playing loud music regardless of who has the property right to the level of sound

Explanation

The correct answer is It is efficient for Roberto to stop playing loud music regardless of who has the property right to the level of sound.

1243EconomicsMedium

The market for hand tools (such as hammers and screwdrivers) is dominated by Draper Stanley, and Craftsman This market is best described as?

Amonopolistically competitive

Ba monopoly

Ccompetitive

Dan oligopoly

Correct answer

D. an oligopoly

Explanation

The correct answer is an oligopoly.

1244EconomicsMedium

An important feature of a ________ is that the holder has the right but not the obligation to buy or sell currency?

Aforeign exchange option

BSwap

Cforeign exchange arbitrage

Dfutures market contract

Correct answer

A. foreign exchange option

Explanation

The correct answer is foreign exchange option.

1245EconomicsMedium

The use of the word “monopoly” in the name of the market structure called “monopolistic competition” refers to the fact that?

Amonopolistically competitive markets have free entry and exit just like a monopolistic market

Bmonopolistically competitive firms charge prices equal to their marginal costs just like monopolists

Cmonopolistically competitive firms produce beyond their efficient scale and so do monopolists

Da monopolistically competitive firms faces a downward-sloping demand curve for its differentiated product and so does a monopolist

Correct answer

D. a monopolistically competitive firms faces a downward-sloping demand curve for its differentiated product and so does a monopolist

Explanation

The correct answer is a monopolistically competitive firms faces a downward-sloping demand curve for its differentiated product and so does a monopolist.

1246EconomicsMedium

Velocity of circulation of money means?

AThe number of times as unit of money changes hands monthly

BThe number of times a unit of money changes hands annually

CThe number of times a unit of money changes value

DThe number of times a unit of money changes hands daily

Correct answer

B. The number of times a unit of money changes hands annually

Explanation

The correct answer is The number of times a unit of money changes hands annually.

1247EconomicsMedium

The monetary base is and ?

ACurrency in circulation, banks cash reserves

Bretail sight deposits building society deposits

Cretail deposits, wholesale deposits

Dbank deposits, building society deposits

Correct answer

A. Currency in circulation, banks cash reserves

Explanation

The correct answer is Currency in circulation, banks cash reserves.

1248EconomicsMedium

Which money is called ‘Earnest’ Money?

AAdvanced payment to bind a contract or bargain

BA token of something to come

CAll of these

DA promise or assurance

Correct answer

C. All of these

Explanation

The correct answer is All of these.

1249EconomicsMedium

The value of an asset depends upon?

Aits scrap values

Bthe cost of loans

Cthe present value of the future stream of income it can earn

Dits depreciation

Correct answer

C. the present value of the future stream of income it can earn

Explanation

The correct answer is the present value of the future stream of income it can earn.

1250EconomicsMedium

Ad valorem tariffs are collected as?

Aa percentage of the quantity of imports

Bfixed amounts of money per unit traded

CAll of the above

Da percentage of the price of the product

Correct answer

D. a percentage of the price of the product

Explanation

The correct answer is a percentage of the price of the product.

International trade is based on the nation that?

AGoods are more mobile internationally than are resources

BResources are more mobile internationally that are goods

CA country’s exports should always exceed its imports

DDifferent currencies are an obstacle to international trade

Correct answer

A. Goods are more mobile internationally than are resources

Explanation

The correct answer is Goods are more mobile internationally than are resources.

Roberto and Thomas live in a university hall of residence Roberto values playing loud music at a value of €100. Thomas values Pease and quiet at a value of €150. Which of the following statements is true?

AIt is efficient for Roberto to stop playing loud music only if Roberto has the property right to play loud music

BIt is efficient for Roberto to stop playing loud music regardless of who has the property right to the level of sound

CIt is efficient for Roberto to stop playing loud music only if Thomas has the property right to peace and quiet

Dit is efficient for Roberto to continue to play loud music

Correct answer

B. It is efficient for Roberto to stop playing loud music regardless of who has the property right to the level of sound

Explanation

The correct answer is It is efficient for Roberto to stop playing loud music regardless of who has the property right to the level of sound.

The use of the word “monopoly” in the name of the market structure called “monopolistic competition” refers to the fact that?

Amonopolistically competitive markets have free entry and exit just like a monopolistic market

Bmonopolistically competitive firms charge prices equal to their marginal costs just like monopolists

Cmonopolistically competitive firms produce beyond their efficient scale and so do monopolists

Da monopolistically competitive firms faces a downward-sloping demand curve for its differentiated product and so does a monopolist

Correct answer

D. a monopolistically competitive firms faces a downward-sloping demand curve for its differentiated product and so does a monopolist

Explanation

The correct answer is a monopolistically competitive firms faces a downward-sloping demand curve for its differentiated product and so does a monopolist.

Velocity of circulation of money means?

AThe number of times as unit of money changes hands monthly

BThe number of times a unit of money changes hands annually

CThe number of times a unit of money changes value

DThe number of times a unit of money changes hands daily

Correct answer

B. The number of times a unit of money changes hands annually

Explanation

The correct answer is The number of times a unit of money changes hands annually.

The monetary base is ________ and ________?

ACurrency in circulation, banks cash reserves

Bretail sight deposits building society deposits

Cretail deposits, wholesale deposits

Dbank deposits, building society deposits

Correct answer

A. Currency in circulation, banks cash reserves

Explanation

The correct answer is Currency in circulation, banks cash reserves.