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Economics MCQs with Explanations

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2321EconomicsMedium

An increase in the demand for a firm’s output?

Adecrease the prosperity of the firm but increases the prosperity of the factors hired by the firm

Bincreases the prosperity of both the firm and the factors hired by the firm.

Cdecreases the prosperity of both the firms and the factors hired by the firm.

Dincreases the prosperity of the firm but decreases the prosperity of the factors hired by the firm.

Correct answer

B. increases the prosperity of both the firm and the factors hired by the firm.

Explanation

The correct answer is increases the prosperity of both the firm and the factors hired by the firm..

2322EconomicsMedium

What is Baran’s explanation for underdevelopment in Asia, Africa, and Latin America?

Aweak domestic middle class

Bmonopolistic business from abroad

Creactionary ruling coalitions

DAll of the above

Correct answer

D. All of the above

Explanation

The correct answer is All of the above.

2323EconomicsMedium

If the efficient markets hypothesis is true, then?

Athe stock market is informationally efficient so share prices should follow a random walk

Bshares tend to be overvalued

Cfundamental analysis is a valuable tool for increasing one’s returns from investing in shares

DAll of these answers

Correct answer

A. the stock market is informationally efficient so share prices should follow a random walk

Explanation

The correct answer is the stock market is informationally efficient so share prices should follow a random walk.

2324EconomicsMedium

Globalism________?

Ais a movement of religious zealots who want to introduce a common religion around the world?

Brefers to the fact that capitalism has become the economic system of choice around the world

Cattracts young idealistic people who want to introduce a world government

Dis a movement aimed at pulling African nations into a world economy?

Correct answer

B. refers to the fact that capitalism has become the economic system of choice around the world

Explanation

The correct answer is refers to the fact that capitalism has become the economic system of choice around the world.

2325EconomicsMedium

Injections are?

AAssumed to be a function of national income

BDecrease aggregate demand

CDecrease the investment into an economy

DAssumed to be exogenous

Correct answer

C. Decrease the investment into an economy

Explanation

The correct answer is Decrease the investment into an economy.

2326EconomicsMedium

Peasants are?

Arural politicians

Brural, religious group

Crural cultivators

Drural industrialist

Correct answer

C. rural cultivators

Explanation

The correct answer is rural cultivators.

2327EconomicsMedium

Policy makers are said to “accommodate” an adverse supply shock if they?

Arespond to the adverse supply shock by decreasing short run aggregate supply

Brespond to the adverse supply shock by increasing aggregate demand, which further raises prices

Crespond to the adverse supply shock by decreasing aggregate demand which lower prices

Dfail to respond to the adverse supply shock and allow the economy to adjust on its own.

Correct answer

B. respond to the adverse supply shock by increasing aggregate demand, which further raises prices

Explanation

The correct answer is respond to the adverse supply shock by increasing aggregate demand, which further raises prices.

2328EconomicsMedium

The resources each spouse brings to a marriage include________?

Athe ability to earn income

Bincome

Coccupational prestige

Dall of the above

Correct answer

D. all of the above

Explanation

The correct answer is all of the above.

2329EconomicsMedium

Change felt through new patterns of individual and small-group interaction is called________?

Amicro-level change

Binnovation

Cmacro-level change

Ddiffusion

Correct answer

A. micro-level change

Explanation

The correct answer is micro-level change.

2330EconomicsMedium

Rolls Royce uses which of the following distribution formats?

AExclusive distribution

BIntensive distribution

COpen distribution

DSelective distribution

Correct answer

A. Exclusive distribution

Explanation

The correct answer is Exclusive distribution.

An increase in the demand for a firm’s output?

Adecrease the prosperity of the firm but increases the prosperity of the factors hired by the firm

Bincreases the prosperity of both the firm and the factors hired by the firm.

Cdecreases the prosperity of both the firms and the factors hired by the firm.

Dincreases the prosperity of the firm but decreases the prosperity of the factors hired by the firm.

Correct answer

B. increases the prosperity of both the firm and the factors hired by the firm.

Explanation

The correct answer is increases the prosperity of both the firm and the factors hired by the firm..

If the efficient markets hypothesis is true, then?

Athe stock market is informationally efficient so share prices should follow a random walk

Bshares tend to be overvalued

Cfundamental analysis is a valuable tool for increasing one’s returns from investing in shares

DAll of these answers

Correct answer

A. the stock market is informationally efficient so share prices should follow a random walk

Explanation

The correct answer is the stock market is informationally efficient so share prices should follow a random walk.

Globalism________?

Ais a movement of religious zealots who want to introduce a common religion around the world?

Brefers to the fact that capitalism has become the economic system of choice around the world

Cattracts young idealistic people who want to introduce a world government

Dis a movement aimed at pulling African nations into a world economy?

Correct answer

B. refers to the fact that capitalism has become the economic system of choice around the world

Explanation

The correct answer is refers to the fact that capitalism has become the economic system of choice around the world.

Policy makers are said to “accommodate” an adverse supply shock if they?

Arespond to the adverse supply shock by decreasing short run aggregate supply

Brespond to the adverse supply shock by increasing aggregate demand, which further raises prices

Crespond to the adverse supply shock by decreasing aggregate demand which lower prices

Dfail to respond to the adverse supply shock and allow the economy to adjust on its own.

Correct answer

B. respond to the adverse supply shock by increasing aggregate demand, which further raises prices

Explanation

The correct answer is respond to the adverse supply shock by increasing aggregate demand, which further raises prices.