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Economics MCQs with Explanations

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171EconomicsMedium

Which of the following statement is NOT true about OECD aid?

AIn the early 1990s the OECD contributed 98 percent of all aid

BThe OECD aid increased from $6.9 billion in 1970 to $8.9 billion in 2001

CIn 2001, only Denmark Norway, Sweden, the Netherlands, and Luxembourg exceeded the aid target for LDCs

DDuring the 1980s OECD countries contributed four fifths of the world’s bilateral official development assistance to LDCs

Correct answer

B. The OECD aid increased from $6.9 billion in 1970 to $8.9 billion in 2001

Explanation

The correct answer is The OECD aid increased from $6.9 billion in 1970 to $8.9 billion in 2001.

172EconomicsMedium

All of the following are thought to be sources of new product ideas EXCEPT?

Acustomers

Binternal sources

Ccompetitors

Dthe local library

Correct answer

D. the local library

Explanation

The correct answer is the local library.

173EconomicsMedium

In the year 2010-11 what was per capita income?

A$ 975

B$ 1095

C$ 945

D$ 905

Correct answer

B. $ 1095

Explanation

The correct answer is $ 1095.

174EconomicsMedium

When marginal costs are below average total costs?

Aaverage total cost is raising

Baverage total cost is falling

Caverage total cost is minimized

Daverage fixed cost is rising

Correct answer

B. average total cost is falling

Explanation

The correct answer is average total cost is falling.

175EconomicsMedium

An outward shift in the Marginal Efficiency of Capital should?

AIncrease aggregate demand

BDecrease consumption

CSlow economic growth

DReduce aggregate supply

Correct answer

D. Reduce aggregate supply

Explanation

The correct answer is Reduce aggregate supply.

176EconomicsMedium

A piece of land and whatever physical property is on it is called?

ASolid asset

BProperty

CUnmovable property

DReal estate

Correct answer

D. Real estate

Explanation

The correct answer is Real estate.

177EconomicsMedium

Which of the following statements about stabilization policy is not true?

AMany economists prefer automatic stabilizers because they affect the economy with a shorter lag than activist stabilization policy

BLong lags enhance the ability of policy makers to fine tune the economy

CNone of these answers are true

DWhen policy makers implement activist stabilization policies there is a significant risk that their policies may actually have a destabilizing effect

Correct answer

B. Long lags enhance the ability of policy makers to fine tune the economy

Explanation

The correct answer is Long lags enhance the ability of policy makers to fine tune the economy.

178EconomicsMedium

________ occurs when a firm disposes on foreign markets a temporary increases in inventories caused by unforeseen changes in supply and demand conditions in the home economy?

Apredatory dumping

Bpersistent dumping

Cforeign dumping

Dsporadic dumping

Correct answer

D. sporadic dumping

Explanation

The correct answer is sporadic dumping.

179EconomicsMedium

Which of the following NOT a cause of food insecurity, according to Nic Maunder, a specialist on Ethiopia?

AWar and bad governance

BCorruption and mismanagement

CAid from developed nations

DPoor roads

Correct answer

B. Corruption and mismanagement

Explanation

The correct answer is Corruption and mismanagement.

180EconomicsMedium

The sate differs from all the other institutions in that________?

Aits political control is complete

Bmembership is compulsory for all residents of its territory except for aliens and visitors

Call of the above

Dit is an abstract concept

Correct answer

A. its political control is complete

Explanation

The correct answer is its political control is complete.

Which of the following statement is NOT true about OECD aid?

AIn the early 1990s the OECD contributed 98 percent of all aid

BThe OECD aid increased from $6.9 billion in 1970 to $8.9 billion in 2001

CIn 2001, only Denmark Norway, Sweden, the Netherlands, and Luxembourg exceeded the aid target for LDCs

DDuring the 1980s OECD countries contributed four fifths of the world’s bilateral official development assistance to LDCs

Correct answer

B. The OECD aid increased from $6.9 billion in 1970 to $8.9 billion in 2001

Explanation

The correct answer is The OECD aid increased from $6.9 billion in 1970 to $8.9 billion in 2001.

Which of the following statements about stabilization policy is not true?

AMany economists prefer automatic stabilizers because they affect the economy with a shorter lag than activist stabilization policy

BLong lags enhance the ability of policy makers to fine tune the economy

CNone of these answers are true

DWhen policy makers implement activist stabilization policies there is a significant risk that their policies may actually have a destabilizing effect

Correct answer

B. Long lags enhance the ability of policy makers to fine tune the economy

Explanation

The correct answer is Long lags enhance the ability of policy makers to fine tune the economy.