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Economics MCQs with Explanations

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261EconomicsMedium

Which tropical fruit is Latin named musa?

Acoconut

Bbanana

Ccassava

DPassion fruit

Correct answer

B. banana

Explanation

The correct answer is banana.

262EconomicsMedium

Suppose that a war is fought will biological weapons. The weapons destroy people but not capital. What is likely to happen to equilibrium wages and rental rates after the war when compared to their values before the war?

AWages rise, and rental rates rise

BWages rise, and rental rates fall

CWages fall, and rental rates rise

DWages fall, and rental rates fall

Correct answer

B. Wages rise, and rental rates fall

Explanation

The correct answer is Wages rise, and rental rates fall.

263EconomicsMedium

Bank issued a document that authorizes the bearer to receive money from one of its foreign branches or from another bank abroad. What such document is called?

Aletter of Credit

BLetter of intent

CDemand draft

DLetter of expression

Correct answer

A. letter of Credit

Explanation

The correct answer is letter of Credit.

264EconomicsMedium

Organized family-planning programs and the demand for birth control resulting from urbanization, modernization, economic development and increased education have contributed to?

Aa decline in fertility

Ban increase in the dependency ratio

CThe demographic transition from stage 3 to stage 2

Dincreases in the ratio of labor to capital

Correct answer

A. a decline in fertility

Explanation

The correct answer is a decline in fertility.

265EconomicsMedium

With ________ prices rise in the first sector, remain the same in the second and increase overall?

Ainflationary expectations

Bdemand pull inflation

Cimport substitution

Dratchet inflation

Correct answer

D. ratchet inflation

Explanation

The correct answer is ratchet inflation.

266EconomicsMedium

Vertical equity holds that?

Athose with equal ability to pay should bear unequal burdens

Bthose who benefit the most from government service should bear the higher tax burden

Cthose with greater ability to pay should pay more

Dthose will equal ability to pay should bear equal tax burdens.

Correct answer

C. those with greater ability to pay should pay more

Explanation

The correct answer is those with greater ability to pay should pay more.

267EconomicsMedium

Reaganomics was a radical shift in Policy aimed at direct tackling?

Athe supply side of the economy

BThe charities economy

CThe demand side of the country

DThe underground economy

Correct answer

A. the supply side of the economy

Explanation

The correct answer is the supply side of the economy.

268EconomicsMedium

With free trade, suppose that the rest of the world can supply calculators to Canada at a price of $30. Canada’s imports would now equal ____ and its consumer surplus would relative to what occurred in the absence of trade. What is the change in consumer surplus? Refer to the figure that you have plotted?

A25 calculators increase

B30 calculators increase

C25 calculators decrease

D20 calculators increase

Correct answer

B. 30 calculators increase

Explanation

The correct answer is 30 calculators increase.

269EconomicsMedium

Exchange rates that are determined by the unregulated forces of supply and demand are?

Amanaged exchange rates

Bfloating exchange rates

Cfixed exchange rates

Dpegged exchange rates

Correct answer

B. floating exchange rates

Explanation

The correct answer is floating exchange rates.

270EconomicsMedium

Which of the following is an example of a public good?

AWhales in the ocean

Bhot dogs at a picnic

Capples on a tree in a public park

Dnational defense

Correct answer

D. national defense

Explanation

The correct answer is national defense.

Vertical equity holds that?

Athose with equal ability to pay should bear unequal burdens

Bthose who benefit the most from government service should bear the higher tax burden

Cthose with greater ability to pay should pay more

Dthose will equal ability to pay should bear equal tax burdens.

Correct answer

C. those with greater ability to pay should pay more

Explanation

The correct answer is those with greater ability to pay should pay more.