Economics MCQs with explanations

Question 1

In Third World countries the factors that discourage birth control include________?

Accepted Answer

traditional values

Question 2

An example of a state that has had to worry about and defend its very physical existence is________?

Accepted Answer

Israel

Question 3

Interest that is calculated as a simple percentage of the original principal amount is called?

Accepted Answer

Simple interest

Question 4

In a cartel member firms may be given a fixed amount to produce. This is called a?

Accepted Answer

Quota

Question 5

The synchronized application of capital to a wide range of different industries is called ________ by its advocates?

Accepted Answer

balanced growth

Question 6

Which business device involves the creation of a new business by two or more companies often for a limited period of time?

Accepted Answer

international joint venture

Question 7

In free trade A will import?

Accepted Answer

600 units from country C

Question 8

Trade between two countries can be useful if cost ratios of goods are?

Accepted Answer

Different

Question 9

Assume that the United States faces a percent inflation rate while no (zero) inflation exists in Japan. According to the purchasing power parity theory over the long run the dollar would be expected to?

Accepted Answer

depreciate by 8 percent against the yen

Question 10

The marginal tax rate is?

Accepted Answer

the extra taxes paid on an additional unit of income

Economics MCQs with Explanations