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Economics MCQs with Explanations

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1401EconomicsMedium

An oligopoly with a dominant price leader will produce a level of output?

Abetween that which would prevail under competition and that which a monopolistic competitor would choose in the same industry.

Bthat would prevail under competition

Cbetween that which would prevail under competition and that which a monopolist would choose in the same industry

Dequal to what a monopolist would choose in the same industry

Correct answer

C. between that which would prevail under competition and that which a monopolist would choose in the same industry

Explanation

The correct answer is between that which would prevail under competition and that which a monopolist would choose in the same industry.

1402EconomicsMedium

The opportunity cost of acquiring education is?

ACourse fees living expenses and textbook

Bthe earnings foregone

Ccourse fees

Dcourse fees and living expenses

Correct answer

B. the earnings foregone

Explanation

The correct answer is the earnings foregone.

1403EconomicsMedium

A significant portion of actual world trade patterns results from?

Adifferent sizes of the countries

Bdifferent factor endowment between countries

Cthe different tastes and preferences of people in different countries

DThe industrial policies of governments

Correct answer

B. different factor endowment between countries

Explanation

The correct answer is different factor endowment between countries.

1404EconomicsMedium

Which of the following statements about price and marginal cost in competitive and monopolized markets is true?

AIn competitive markets price exceeds marginal cost, in monopolized markets price exceeds marginal cost

BIn competitive markets price exceeds marginal cost in monopolized markets price equals marginal cost

CIn competitive markets price equals marginal cost, in monopolized markets price equals marginal cost

DIn competitive markets, price equals marginal cost, in monopolized markets price exceeds marginal cost.

Correct answer

D. In competitive markets, price equals marginal cost, in monopolized markets price exceeds marginal cost.

Explanation

The correct answer is In competitive markets, price equals marginal cost, in monopolized markets price exceeds marginal cost..

1405EconomicsMedium

The participation rate in the labour force is affected by?

Aall of the above

Blower non-labour income

Clower fixed costs of working

Dchanges in tastes between leisure and work

Ehigher real wages

Correct answer

A. all of the above

Explanation

The correct answer is all of the above.

1406EconomicsMedium

When cars are offered at low prices but people still do not buy them the situation is one in which________?

Ademand is elastic

Bexchange takes place

Cdemand is inelastic

Dthere is aggregate demand

Correct answer

C. demand is inelastic

Explanation

The correct answer is demand is inelastic.

1407EconomicsMedium

Faulty role performance?

Aall of the above

Bcould mean that another role is being performed well

Cmay create much stress

Dsometimes occurs by chance

Correct answer

A. all of the above

Explanation

The correct answer is all of the above.

1408EconomicsMedium

Which is an example of a pivotal social institution?

AA symphony orchestra

BThe economy

CA rock bands

DA jail

Correct answer

B. The economy

Explanation

The correct answer is The economy.

1409EconomicsMedium

Suppose that the price of a new bicycle is Rs300 Natalie values a new bicycle at Rs 400 it costs Rs200 for the seller to produce the new bicycle. What is the value of total surplus if Natalie buys a new bike?

ARs200

BRs300

CRs500

DRs400

Correct answer

B. Rs300

Explanation

The correct answer is Rs300.

1410EconomicsMedium

Countervailing duties levied by the U.S government are imposed to offset?

Aforeign dumping of goods in the U.S

Bstringent environmental regulations of foreign government s

Cbuy national policies of foreign government

Dsubsidies granted to foreign firms that export to the U.S

Correct answer

D. subsidies granted to foreign firms that export to the U.S

Explanation

The correct answer is subsidies granted to foreign firms that export to the U.S.

An oligopoly with a dominant price leader will produce a level of output?

Abetween that which would prevail under competition and that which a monopolistic competitor would choose in the same industry.

Bthat would prevail under competition

Cbetween that which would prevail under competition and that which a monopolist would choose in the same industry

Dequal to what a monopolist would choose in the same industry

Correct answer

C. between that which would prevail under competition and that which a monopolist would choose in the same industry

Explanation

The correct answer is between that which would prevail under competition and that which a monopolist would choose in the same industry.

A significant portion of actual world trade patterns results from?

Adifferent sizes of the countries

Bdifferent factor endowment between countries

Cthe different tastes and preferences of people in different countries

DThe industrial policies of governments

Correct answer

B. different factor endowment between countries

Explanation

The correct answer is different factor endowment between countries.

Which of the following statements about price and marginal cost in competitive and monopolized markets is true?

AIn competitive markets price exceeds marginal cost, in monopolized markets price exceeds marginal cost

BIn competitive markets price exceeds marginal cost in monopolized markets price equals marginal cost

CIn competitive markets price equals marginal cost, in monopolized markets price equals marginal cost

DIn competitive markets, price equals marginal cost, in monopolized markets price exceeds marginal cost.

Correct answer

D. In competitive markets, price equals marginal cost, in monopolized markets price exceeds marginal cost.

Explanation

The correct answer is In competitive markets, price equals marginal cost, in monopolized markets price exceeds marginal cost..

Countervailing duties levied by the U.S government are imposed to offset?

Aforeign dumping of goods in the U.S

Bstringent environmental regulations of foreign government s

Cbuy national policies of foreign government

Dsubsidies granted to foreign firms that export to the U.S

Correct answer

D. subsidies granted to foreign firms that export to the U.S

Explanation

The correct answer is subsidies granted to foreign firms that export to the U.S.