Economics MCQs with explanations

Question 1

Which of the following crops needs maximum water per hectare?

Accepted Answer

Sugarcane

Question 2

Which economics term describes the takeover of one textile manufactures by another?

Accepted Answer

horizontal integration

Question 3

Which country possesses the largest foreign exchange reserves in the world?

Accepted Answer

Japan

Question 4

In monopolistic competition?

Accepted Answer

There is one seller

Question 5

NAFTA binds which three countries into a single commercial entity?

Accepted Answer

United States Canada Mexico

Question 6

Refer to Exhibit 6. Suppose the economy is Operating in long-run equilibrium at point E. An unexpected monetary contraction will move the economy in the direction of point?

Accepted Answer

F

Question 7

Which exchange rate system involves a leaning against the wind|| strategy in which short-term fluctuations in exchange rates are reduced without adhering to any particular exchange rate over the long run?

Accepted Answer

adjustable pegged exchange rates

Question 8

An individual firm’s demand for a factor of production?

Accepted Answer

Slopes downward due to the factor’s diminishing marginal product

Question 9

Polish economist Oskar Lange’s model of decentralized ________ combined the advantages of market allocation with more uniform income distribution by dividing the returns from social ownership of nonhuman productive resources among the whole population?

Accepted Answer

market socialism

Question 10

Suppose two economists are arguing about policies that deal with unemployment One economist says the government should fight unemployment because it is the greatest social evil The other economist response Nonsense Inflation is the greatest social evil These economists?

Accepted Answer

disagree because they have different values.

Economics MCQs with Explanations