Economics MCQs with explanations

Question 1

Violent crowd behavior________?

Accepted Answer

is usually temporary

Question 2

If somebody is prepared to work at the going wage rate but cannot find work then they are victims of?

Accepted Answer

voluntary unemployment

Question 3

When stock market is falling it is________?

Accepted Answer

Bearish

Question 4

Suppose that a Swiss television set that costs 400 francs in Switzerland cost $200 in the United States. The exchange rate between the franc and the dollar is?

Accepted Answer

2 francs per dollar

Question 5

Multinational corporations?

Accepted Answer

increase the transfer of technology between nations

Question 6

Which of the following could be considered critical s in development economics?

Accepted Answer

All of the above are correct

Question 7

You are planning to run a hot dog stand during a forthcoming fair. You originally estimated that you will generated sales revenue of Rs 2000 and you have already spent Rs 1000 building the hot dog stand. The hot dog stand is nearly completed but now you estimate total sales to be only Rs 800 because the fair clashes with a major music festival in a nearby location. You can complete the hot dog stand for another Rs 300 Your decision rule should be to complete the hot dog stand as long as the cost to complete the stand is less than?

Accepted Answer

Rs 800

Question 8

An advocate of the classical model of the economy would claim that unemployment is created when the ____ is above its equilibrium level in the ________?

Accepted Answer

wage rate, labor market

Question 9

Demand and supply are________?

Accepted Answer

market forces

Question 10

To assign uniform characteristics to an entire group of people without allowing for individual differences is called________?

Accepted Answer

stereotyping

Economics MCQs with Explanations