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Economics MCQs with Explanations

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1561EconomicsMedium

An increase in the minimum wage will cause a relatively large increase in unemployment among?

Aunskilled workers if the demand for labour is relatively inelastic

Bskilled workers if the demand for labour is relatively elastic

Cskilled workers if the demand for labour is relatively inelastic

Dunskilled workers if the demand for labour is relatively elastic

Correct answer

D. unskilled workers if the demand for labour is relatively elastic

Explanation

The correct answer is unskilled workers if the demand for labour is relatively elastic.

1562EconomicsMedium

With free trade suppose that the rest of the world can supply computers to Norway at a price of $1,500 Norway’s imports will now equal. Compared to What occurred in the absence of trade, Norway’s consumers surplus will ____ and its producer surplus will . Can you calculate these amounts? Try plotting the information of this table on a sheet of graph paper?

A1,600 computers, decrease, increase

B1,200 computers, increase, decrease

C1,600 computers, increase, decrease

D1,200 computers, decrease, increase

Correct answer

C. 1,600 computers, increase, decrease

Explanation

The correct answer is 1,600 computers, increase, decrease.

1563EconomicsMedium

Unions achieve a higher wage differential the more and the more ?

Athe economy is growing, people prefer leisure

Binelastic the demand for labour, they can restrict the supply of labour

Cthe productivity is growing vacancies exist

Dmembers they have, aggressive they behave

Correct answer

B. inelastic the demand for labour, they can restrict the supply of labour

Explanation

The correct answer is inelastic the demand for labour, they can restrict the supply of labour.

1564EconomicsMedium

Gross National income is always more than Net National income because it includes?

ADirect taxes

BIndirect taxes

CCapital consumption allowance

DForeign income

Correct answer

C. Capital consumption allowance

Explanation

The correct answer is Capital consumption allowance.

1565EconomicsMedium

Brassical in the Latin name for what spice?

Amustard

BSalt

Cpepper

Dbasil

Correct answer

A. mustard

Explanation

The correct answer is mustard.

1566EconomicsMedium

“The capacity of a nation to use its resources to affect the behavior of other nations” is a definition of________?

Adiplomacy

Bforeign policy

Cinternational law

Dpower in the context of international relations

Correct answer

D. power in the context of international relations

Explanation

The correct answer is power in the context of international relations.

1567EconomicsMedium

If the central bank buys financial securities in the open market to increase the monetary base, this is and example of?

Afinancial intermediation

BOpen Market operations

CFinancial regulation

Dlender of less resort

Correct answer

B. Open Market operations

Explanation

The correct answer is Open Market operations.

1568EconomicsMedium

For the United States automobiles are?

AExported and imported

BExported, but not imported

CImported, but not exported

DNeither imported not exported

Correct answer

A. Exported and imported

Explanation

The correct answer is Exported and imported.

1569EconomicsMedium

Language________?

Ahelps humans to cooperate

Ball of the above

Creflects changes in society

Dpasses on knowledge from generation to generation

Correct answer

B. all of the above

Explanation

The correct answer is all of the above.

1570EconomicsMedium

Which city has the following transport policy?

ANew York

BAthens

CCar licenses are very expensive vehicle entry to the city center is very restricted road pricing is being introduced and modern cheap rail transport is being expanded.

DLondon

ESingapore

Correct answer

E. Singapore

Explanation

The correct answer is Singapore.

An increase in the minimum wage will cause a relatively large increase in unemployment among?

Aunskilled workers if the demand for labour is relatively inelastic

Bskilled workers if the demand for labour is relatively elastic

Cskilled workers if the demand for labour is relatively inelastic

Dunskilled workers if the demand for labour is relatively elastic

Correct answer

D. unskilled workers if the demand for labour is relatively elastic

Explanation

The correct answer is unskilled workers if the demand for labour is relatively elastic.

Unions achieve a higher wage differential the more ________ and the more ________?

Athe economy is growing, people prefer leisure

Binelastic the demand for labour, they can restrict the supply of labour

Cthe productivity is growing vacancies exist

Dmembers they have, aggressive they behave

Correct answer

B. inelastic the demand for labour, they can restrict the supply of labour

Explanation

The correct answer is inelastic the demand for labour, they can restrict the supply of labour.