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Economics MCQs with Explanations

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2211EconomicsMedium

Nomboli is formulated for the control of?

Ahousehold pest

Bherbs and shrubs

Cagricultural insect pest

Dpests

Correct answer

A. household pest

Explanation

The correct answer is household pest.

2212EconomicsMedium

John Stuart Mill was the founder of the?

ATheory of reciprocal demand

BTheory of comarative advantage

CTheory of absolute advantage

DTheory of mercantilism

Correct answer

A. Theory of reciprocal demand

Explanation

The correct answer is Theory of reciprocal demand.

2213EconomicsMedium

Official sanctions usually entail________?

Aa transgression of the law

Bpublic recognition

Cthe threat of force

Dall of the above

Correct answer

B. public recognition

Explanation

The correct answer is public recognition.

2214EconomicsMedium

Disguised unemployed is?

Awhen marginal revenue productivity of labor is zero

Bdue to capital formation and the level of technology remaining constant.

Cthe rigid factor proportions in LDC agriculture and industry

Dthe same as seasonal unemployment of LDC agricultural

Correct answer

A. when marginal revenue productivity of labor is zero

Explanation

The correct answer is when marginal revenue productivity of labor is zero.

2215EconomicsMedium

According to the wealth effect aggregate demand slopes downward (negatively) because?

Alower prices reduce money holding increase lending, interest rates fall and investment spending increase

Blower prices increase the value of money holding and consumers spending increase

Clower prices increase money holding decrease lending, interest rates rise and investment spending falls

Dlower prices decrease the value of money holding and consumers spending decrease

Correct answer

B. lower prices increase the value of money holding and consumers spending increase

Explanation

The correct answer is lower prices increase the value of money holding and consumers spending increase.

2216EconomicsMedium

Any combination of products inside the production possibility frontier is?

AX inefficient

BAllocatively inefficient

CConsumer inefficient

DProductively inefficient

Correct answer

D. Productively inefficient

Explanation

The correct answer is Productively inefficient.

2217EconomicsMedium

Governmental non-interference in commerce is called?

AOpen market economy

BLiberal market economy

CFree market economy

DLaissez faire also Laisser faire

Correct answer

D. Laissez faire also Laisser faire

Explanation

The correct answer is Laissez faire also Laisser faire.

2218EconomicsMedium

Aid or official development assistance (ODA) includes?

AI and II only

BI, II, III and IV only

CI, II and IV only

DI, II and III only

Correct answer

C. I, II and IV only

Explanation

The correct answer is I, II and IV only.

2219EconomicsMedium

What would reduce the role of central planning in a economy?

AIncreasing the role of markets

BIncreasing government spending

CRemoving the profit motive

DIncreasing public ownership of firms

Correct answer

A. Increasing the role of markets

Explanation

The correct answer is Increasing the role of markets.

2220EconomicsMedium

The deadweight cost of the tariff equals?

A$50,000

B$75,000

C$25,000

D$10,000

Correct answer

A. $50,000

Explanation

The correct answer is $50,000.

Disguised unemployed is?

Awhen marginal revenue productivity of labor is zero

Bdue to capital formation and the level of technology remaining constant.

Cthe rigid factor proportions in LDC agriculture and industry

Dthe same as seasonal unemployment of LDC agricultural

Correct answer

A. when marginal revenue productivity of labor is zero

Explanation

The correct answer is when marginal revenue productivity of labor is zero.

According to the wealth effect aggregate demand slopes downward (negatively) because?

Alower prices reduce money holding increase lending, interest rates fall and investment spending increase

Blower prices increase the value of money holding and consumers spending increase

Clower prices increase money holding decrease lending, interest rates rise and investment spending falls

Dlower prices decrease the value of money holding and consumers spending decrease

Correct answer

B. lower prices increase the value of money holding and consumers spending increase

Explanation

The correct answer is lower prices increase the value of money holding and consumers spending increase.