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.

63%

2,830 of 4,520MCQs reviewed

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

2831EconomicsMedium

The economists who emphasised wage flexibility as a solution for unemployment were?

Aclassical economists.

Bpost-Keynesian.

Cnew-Keynesian.

DKeynesian.

Correct answer

A. classical economists.

Explanation

The correct answer is classical economists..

2832EconomicsMedium

According to supply-side economists, as tax rates are reduced, labor supply should increase. This implies that?

Athere is no income effect when tax rates are changed

Bthere is no substitution effect when tax rates are changed

Cthe substitution effect of a wage change is greater than the income effect of a wage change

Dthe income effect of a wage change is greater than the substitution effect of a wage change.

Correct answer

C. the substitution effect of a wage change is greater than the income effect of a wage change

Explanation

The correct answer is the substitution effect of a wage change is greater than the income effect of a wage change.

2833EconomicsMedium

If the price in a market is fixed by the government below equilibrium?

AThere is excess demand

BThere is excess supply

CThere is excess equilibrium

DThere is equilibrium

Correct answer

A. There is excess demand

Explanation

The correct answer is There is excess demand.

2834EconomicsMedium

According to the Principle of absolute advantage Japan should?

AExport DVDs

BExports steel and DVDs

CThere is no basis for gainful specialization and trade

DExport steel

Correct answer

C. There is no basis for gainful specialization and trade

Explanation

The correct answer is There is no basis for gainful specialization and trade.

2835EconomicsMedium

The Essay on the Principle of Population was written by?

AThomas Robert Malthus

BJulian Simon

CThe World Bank

DAbraham Lincoin

Correct answer

A. Thomas Robert Malthus

Explanation

The correct answer is Thomas Robert Malthus.

2836EconomicsMedium

Which of the following is NOT true about child mortality?

AMore than 98 percent of child deaths were in LDCs

BWorld-wide child mortality rates increased from 1990 to 2002

CAbout 18 percent of the world’s deaths are among children less than five years old

D19 of the 20 countries with the highest child mortality were in Africa

Correct answer

B. World-wide child mortality rates increased from 1990 to 2002

Explanation

The correct answer is World-wide child mortality rates increased from 1990 to 2002.

2837EconomicsMedium

Open market Operation is?

ABuying and selling shares of companies

BBuying and Selling govt. securities

CBuying and selling foreign exchanges

DBuying and selling bills of exchange

Correct answer

B. Buying and Selling govt. securities

Explanation

The correct answer is Buying and Selling govt. securities.

2838EconomicsMedium

When supply increase in an agricultural market farmer’s earning might fall because?

ADemand is price inelastic

BAll output must be sold at a maximum price

CThe government buys up all the excess production

DSupply is price elastic

Correct answer

A. Demand is price inelastic

Explanation

The correct answer is Demand is price inelastic.

2839EconomicsMedium

Under a system of floating exchange rates relatively high productivity and low inflation rates in the United States results in a (an)?

Adecrease in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar

Bincrease in the demand for foreign currency an increase in the supply of foreign currency and a appreciation in the dollar

Cincrease in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar

Ddecrease in the demand for foreign currency an increase in the supply of foreign currency and a appreciation in the dollar

Correct answer

B. increase in the demand for foreign currency an increase in the supply of foreign currency and a appreciation in the dollar

Explanation

The correct answer is increase in the demand for foreign currency an increase in the supply of foreign currency and a appreciation in the dollar.

2840EconomicsMedium

When capital is owned by the firm as opposed to being directly owned by household capital income may take any of the following forms except?

Adividends

Binterest

Cincreases in stocks of goods

Dretained earnings

Correct answer

C. increases in stocks of goods

Explanation

The correct answer is increases in stocks of goods.

According to supply-side economists, as tax rates are reduced, labor supply should increase. This implies that?

Athere is no income effect when tax rates are changed

Bthere is no substitution effect when tax rates are changed

Cthe substitution effect of a wage change is greater than the income effect of a wage change

Dthe income effect of a wage change is greater than the substitution effect of a wage change.

Correct answer

C. the substitution effect of a wage change is greater than the income effect of a wage change

Explanation

The correct answer is the substitution effect of a wage change is greater than the income effect of a wage change.

Which of the following is NOT true about child mortality?

AMore than 98 percent of child deaths were in LDCs

BWorld-wide child mortality rates increased from 1990 to 2002

CAbout 18 percent of the world’s deaths are among children less than five years old

D19 of the 20 countries with the highest child mortality were in Africa

Correct answer

B. World-wide child mortality rates increased from 1990 to 2002

Explanation

The correct answer is World-wide child mortality rates increased from 1990 to 2002.

Under a system of floating exchange rates relatively high productivity and low inflation rates in the United States results in a (an)?

Adecrease in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar

Bincrease in the demand for foreign currency an increase in the supply of foreign currency and a appreciation in the dollar

Cincrease in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar

Ddecrease in the demand for foreign currency an increase in the supply of foreign currency and a appreciation in the dollar

Correct answer

B. increase in the demand for foreign currency an increase in the supply of foreign currency and a appreciation in the dollar

Explanation

The correct answer is increase in the demand for foreign currency an increase in the supply of foreign currency and a appreciation in the dollar.