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Economics MCQs with Explanations

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1541EconomicsMedium

The formula to calculate economic growth from 2001 to 2002 is given by?

A[(GDP2001 – GDP2002]100

B[(GDP2002 + GDP2001)/GDP2001]100

Correct answer

B. [(GDP2002 + GDP2001)/GDP2001]100

Explanation

The correct answer is [(GDP2002 + GDP2001)/GDP2001]100.

1542EconomicsMedium

When the government must pay for fighter planes based on commitments made five years previously the spending the spending is called________?

Adiscretionary

Bbalanced

Cuncontrollable

Dunavoidable

Correct answer

C. uncontrollable

Explanation

The correct answer is uncontrollable.

1543EconomicsMedium

Which country produced the second most rubber?

AIndia

BMalysia

CThailand

DIndonesia

Correct answer

D. Indonesia

Explanation

The correct answer is Indonesia.

1544EconomicsMedium

Within the circular flow of income, an increase in domestic income will tend to increase?

Ataxes

Binventories

Cimports

Dexports

Correct answer

A. taxes

Explanation

The correct answer is taxes.

1545EconomicsMedium

The relationship between population and income is________?

Athe rise in income and population results in a decrease of urbanization

Bthe birth rate rises because of an increase in education

Can increase in income produces a decline in fertility

Dworking women have more children

Correct answer

C. an increase in income produces a decline in fertility

Explanation

The correct answer is an increase in income produces a decline in fertility.

1546EconomicsMedium

Which of the following statements is true about a market economy?

AMarket participants act as if guided by an invisible hand to produce outcomes that maximize social welfare

BTaxes help prices communicate costs and benefits to producers and consumers.

CThe strength of a market system is that it tends to distribute resources evenly across consumers.

DWith a large enough computer, central planners could guide production more efficiently than markets.

Correct answer

A. Market participants act as if guided by an invisible hand to produce outcomes that maximize social welfare

Explanation

The correct answer is Market participants act as if guided by an invisible hand to produce outcomes that maximize social welfare.

1547EconomicsMedium

Real business cycle theorists argue that ________ can explain short- and long-term fluctuation in output?

Arational expectations

Bintertertemporal decisions of households, firms and government

Cimperfect labor markets

Dsun spot cycles

Correct answer

B. intertertemporal decisions of households, firms and government

Explanation

The correct answer is intertertemporal decisions of households, firms and government.

1548EconomicsMedium

Which branch of Judaism ordains women as rabbis?

AOrthodox

BReform

CConservative

DSephardic

Correct answer

B. Reform

Explanation

The correct answer is Reform.

1549EconomicsMedium

The manifest functions of government include________?

Athe formation of party machines

Bthe enlargement of the administrative elite

Cthe provision of institutionalized social control

Dthe protection of the interests of the power elite

Correct answer

D. the protection of the interests of the power elite

Explanation

The correct answer is the protection of the interests of the power elite.

1550EconomicsMedium

To what does the phrase terms of trade refer?

Athe currency exchange rate

Bthe difference between the value of visible exports and visible imports

Cthe rate at which exports are exchanged for imports

DThe government’s policies to increase exports

Correct answer

C. the rate at which exports are exchanged for imports

Explanation

The correct answer is the rate at which exports are exchanged for imports.

The relationship between population and income is________?

Athe rise in income and population results in a decrease of urbanization

Bthe birth rate rises because of an increase in education

Can increase in income produces a decline in fertility

Dworking women have more children

Correct answer

C. an increase in income produces a decline in fertility

Explanation

The correct answer is an increase in income produces a decline in fertility.

Which of the following statements is true about a market economy?

AMarket participants act as if guided by an invisible hand to produce outcomes that maximize social welfare

BTaxes help prices communicate costs and benefits to producers and consumers.

CThe strength of a market system is that it tends to distribute resources evenly across consumers.

DWith a large enough computer, central planners could guide production more efficiently than markets.

Correct answer

A. Market participants act as if guided by an invisible hand to produce outcomes that maximize social welfare

Explanation

The correct answer is Market participants act as if guided by an invisible hand to produce outcomes that maximize social welfare.

Real business cycle theorists argue that ________ can explain short- and long-term fluctuation in output?

Arational expectations

Bintertertemporal decisions of households, firms and government

Cimperfect labor markets

Dsun spot cycles

Correct answer

B. intertertemporal decisions of households, firms and government

Explanation

The correct answer is intertertemporal decisions of households, firms and government.

The manifest functions of government include________?

Athe formation of party machines

Bthe enlargement of the administrative elite

Cthe provision of institutionalized social control

Dthe protection of the interests of the power elite

Correct answer

D. the protection of the interests of the power elite

Explanation

The correct answer is the protection of the interests of the power elite.

To what does the phrase terms of trade refer?

Athe currency exchange rate

Bthe difference between the value of visible exports and visible imports

Cthe rate at which exports are exchanged for imports

DThe government’s policies to increase exports

Correct answer

C. the rate at which exports are exchanged for imports

Explanation

The correct answer is the rate at which exports are exchanged for imports.