MCQs

Economics MCQs with Explanations

Read every question, see the correct answer, and understand the explanation at your own pace. Study mode has no timer and no negative marking.

54%

2,450 of 4,520MCQs reviewed

Study Mode — explanations are always visiblePrefer a timed quiz? Start test

2451EconomicsMedium

Monopolistic Competition is different from Perfect Competition because of:

AThe large number of firms in the industry

BThe low level of price competition in Monopolistic Competition

CThe lack of barriers to entry and exit of firms

DThe high level of price competition in Monopolistic Competition

Correct answer

B. The low level of price competition in Monopolistic Competition

Explanation

In monopolistic competition, firms sell differentiated products, leading to less price competition than in perfect competition.

2452EconomicsMedium

If the marginal propensity of consume MPC is 0.75 the value of the multiplier is?

A7.5

C0.75

Correct answer

D. 4

Explanation

The correct answer is 4.

2453EconomicsMedium

Which elements are affected by pollution?

AWater

BAir

Call of the above

DLand

Correct answer

C. all of the above

Explanation

The correct answer is all of the above.

2454EconomicsMedium

The master status of George W.Bush was________?

Adog owner

Bjogger

Chusband

Dpresident

Correct answer

D. president

Explanation

The correct answer is president.

2455EconomicsMedium

Boeing aircraft company was able to over its production costs of the first – jumbo jetll in the seventies because Boeing could market it to several foreign airlines in addition to domestic airlines. This illustrates?

AHow a natural monopoly is forced to behave more competitively with international trade

BA transfer of wealth from domestic consumer to domestic producer as the result of trade

CHow economies of scale make possible a larger variety of products in international trade

DHow a natural monopoly is forced to behave less competitively with international trade

Correct answer

C. How economies of scale make possible a larger variety of products in international trade

Explanation

The correct answer is How economies of scale make possible a larger variety of products in international trade.

2456EconomicsMedium

Nontariff trade barriers could include all of the following except?

Adomestic content laws

Bgovernment procurement policies

Cantidumping/countervailing duties applied to imports

Dhealth, safety, and environmental standards

Correct answer

C. antidumping/countervailing duties applied to imports

Explanation

The correct answer is antidumping/countervailing duties applied to imports.

2457EconomicsMedium

Which of the following statements regarding the circular-flow diagram is true?

AIf BAe Systems sells a military aircraft, the transaction takes place in the market for factors for production

BNone of these

CIf Susan works for BAe Systems and receives a salary payment, the transaction takes place in the market for good and services.

DThe factors of production are owned by households

Correct answer

D. The factors of production are owned by households

Explanation

The correct answer is The factors of production are owned by households.

2458EconomicsMedium

Government policies that focus on increasing production rather than demand are called?

Afiscal policies

Bsupply-side policies

Cmonetary policies

Correct answer

B. supply-side policies

Explanation

The correct answer is supply-side policies.

2459EconomicsMedium

Assuming a downward sloping demand curve and upward sloping supply curve a higher equilibrium price may be caused by?

AAn increase in supply

BAn increase in demand

CAn fall in demand

Dimprovements in production technology

Correct answer

B. An increase in demand

Explanation

The correct answer is An increase in demand.

2460EconomicsMedium

Structured inequality of gender roles________?

Abegan with hunting and gathering societies

Bhas its origins in agricultural communities?

Cis peculiar to industrial societies

Dhas been with humans from the dawn of culture

Correct answer

B. has its origins in agricultural communities?

Explanation

The correct answer is has its origins in agricultural communities?.

Monopolistic Competition is different from Perfect Competition because of:

AThe large number of firms in the industry

BThe low level of price competition in Monopolistic Competition

CThe lack of barriers to entry and exit of firms

DThe high level of price competition in Monopolistic Competition

Correct answer

B. The low level of price competition in Monopolistic Competition

Explanation

In monopolistic competition, firms sell differentiated products, leading to less price competition than in perfect competition.

Boeing aircraft company was able to over its production costs of the first – jumbo jetll in the seventies because Boeing could market it to several foreign airlines in addition to domestic airlines. This illustrates?

AHow a natural monopoly is forced to behave more competitively with international trade

BA transfer of wealth from domestic consumer to domestic producer as the result of trade

CHow economies of scale make possible a larger variety of products in international trade

DHow a natural monopoly is forced to behave less competitively with international trade

Correct answer

C. How economies of scale make possible a larger variety of products in international trade

Explanation

The correct answer is How economies of scale make possible a larger variety of products in international trade.

Nontariff trade barriers could include all of the following except?

Adomestic content laws

Bgovernment procurement policies

Cantidumping/countervailing duties applied to imports

Dhealth, safety, and environmental standards

Correct answer

C. antidumping/countervailing duties applied to imports

Explanation

The correct answer is antidumping/countervailing duties applied to imports.

Which of the following statements regarding the circular-flow diagram is true?

AIf BAe Systems sells a military aircraft, the transaction takes place in the market for factors for production

BNone of these

CIf Susan works for BAe Systems and receives a salary payment, the transaction takes place in the market for good and services.

DThe factors of production are owned by households

Correct answer

D. The factors of production are owned by households

Explanation

The correct answer is The factors of production are owned by households.

Structured inequality of gender roles________?

Abegan with hunting and gathering societies

Bhas its origins in agricultural communities?

Cis peculiar to industrial societies

Dhas been with humans from the dawn of culture

Correct answer

B. has its origins in agricultural communities?

Explanation

The correct answer is has its origins in agricultural communities?.