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Economics MCQs with Explanations

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141EconomicsMedium

Races are breeding or mating population of people classified according to?

ACommon religion

Bcommon origin

CCommon language

Dgenetically transmitted characteristics

Correct answer

D. genetically transmitted characteristics

Explanation

The correct answer is genetically transmitted characteristics.

142EconomicsMedium

Refer to Exhibit 6.If People in the economy expect inflation to be 3 percent and inflation is 3 percent the economy is operating at point?

Correct answer

A. H

Explanation

The correct answer is H.

143EconomicsMedium

A sale maximizing firm will produce where?

AMC = MR

Bquantity sold is maximized

Csales revenue is maximized

DAR minus AC is maximized

Correct answer

C. sales revenue is maximized

Explanation

The correct answer is sales revenue is maximized.

144EconomicsMedium

Which one of the following is not an argument in support of the UK joining the EMU?

AThe UK needs to be a member of the EMU in order to continue to attract such large share of foreign direct investment in EU countries

BNone of these arguments they are all arguments in support of the UK joining the UMU

CThe characteristics of the UK housing market make UK consumers expenditure very sensitive to changes in interest rates

DThe UK risks exclusion from the Euroland capital market with damaging consequences with damaging

Correct answer

C. The characteristics of the UK housing market make UK consumers expenditure very sensitive to changes in interest rates

Explanation

The correct answer is The characteristics of the UK housing market make UK consumers expenditure very sensitive to changes in interest rates.

145EconomicsMedium

A variable whose value is determined by the model of which it is a part is termed?

Aindependent

Bexogenous

Cconstant

Dendogenous

Correct answer

D. endogenous

Explanation

The correct answer is endogenous.

146EconomicsMedium

When interest rate rise, other things equal, we can expect the quantity of real money holding to?

Afall

Bnot change

Cincrease

DNone of these

Correct answer

A. fall

Explanation

The correct answer is fall.

147EconomicsMedium

The retail price index is used to________?

Ameasure changes in the cost of living

Bconstruct price lists

Ccompare shop prices

DNone of the above

Correct answer

A. measure changes in the cost of living

Explanation

The correct answer is measure changes in the cost of living.

148EconomicsMedium

The Tragedy of the Commons is a parable that illustrates why?

Aprivate goods are under consumed

Bcommon resources are overconsumed

Cpublic goods are underproduced

Dnatural monopolies overproduce goods.

Correct answer

B. common resources are overconsumed

Explanation

The correct answer is common resources are overconsumed.

149EconomicsMedium

One percentage decrease in unemployment is associated with two percentage points of additional growth in real gdp is called?

AConsumer price index

Bnone of the above

COkun’s Law

Dclassical theory

Correct answer

C. Okun’s Law

Explanation

The correct answer is Okun’s Law.

150EconomicsMedium

Suppose that Pakistan imposes a tariff on ballpoint pens of 25 rupees per pen plus 12 percent of the pen’s value, this is an example of a (an)?

Aad valorem tariff

Bcompound tariff

Ceffective tariff

Dspecific tariff

Correct answer

B. compound tariff

Explanation

The correct answer is compound tariff.

Which one of the following is not an argument in support of the UK joining the EMU?

AThe UK needs to be a member of the EMU in order to continue to attract such large share of foreign direct investment in EU countries

BNone of these arguments they are all arguments in support of the UK joining the UMU

CThe characteristics of the UK housing market make UK consumers expenditure very sensitive to changes in interest rates

DThe UK risks exclusion from the Euroland capital market with damaging consequences with damaging

Correct answer

C. The characteristics of the UK housing market make UK consumers expenditure very sensitive to changes in interest rates

Explanation

The correct answer is The characteristics of the UK housing market make UK consumers expenditure very sensitive to changes in interest rates.