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Economics MCQs with Explanations

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2851EconomicsMedium

Which exchange rate mechanism calls for frequent redefining of the par value by small amounts to remove a payments disequilibrium?

Adual exchange rate

Badjustable pegged exchange rates

Ccrawling pegged exchange rates

Dmanaged floating exchange rates

Correct answer

C. crawling pegged exchange rates

Explanation

The correct answer is crawling pegged exchange rates.

2852EconomicsMedium

An increase in the budget deficit that causes the government to increase its borrowing?

AShifts the supply of loanable funds to the right

BShift the demand for loanable funds to the right

CShift the supply of loanable funds to the left

DShift the demand for loandbale funds to the left

Correct answer

C. Shift the supply of loanable funds to the left

Explanation

The correct answer is Shift the supply of loanable funds to the left.

2853EconomicsMedium

Identify below what is NOT considered to be a cause of economic growth?

AAn increase in technology

BAn increase in the money supply

CAn increase in the quantity of labor and capital

DAn increase in labor productivity

Correct answer

B. An increase in the money supply

Explanation

The correct answer is An increase in the money supply.

2854EconomicsMedium

Societies in which ascribed statuses have been prevalent include________?

Aindustrial societies like the United States

Bestate systems in feudal Europe

Coccupationally-based caste systems as in pre-modern India

DA and C only

Correct answer

D. A and C only

Explanation

The correct answer is A and C only.

2855EconomicsMedium

The main function of organized labor is to________?

Astrike

Bbargain collectively

Cmanage large corporations

Dregulate safety

Correct answer

B. bargain collectively

Explanation

The correct answer is bargain collectively.

2856EconomicsMedium

You can see the computer age everywhere but, in the productivity, statistics is a attributed to which economist?

AJoseph Stieglitz

BRobert Solow

CTheodore W. Schultz

DDale Jorgenson

Correct answer

B. Robert Solow

Explanation

The correct answer is Robert Solow.

2857EconomicsMedium

The shrinking or distances due to technological advances such as computer and fax connections by telephone are one characteristic of what new challenge to marketing?

AThe micro-chip revolution

BThe changing world economy

CRapid globalization

DThe call for more socially responsible marketing

Correct answer

C. Rapid globalization

Explanation

The correct answer is Rapid globalization.

2858EconomicsMedium

If a small percentage increase in the price of a good greatly reduces the quantity demanded for that good, the demand for that good is?

Aprice inelastic

Bprice elastic

Cunit price elastic

Dincome inelastic

Correct answer

B. price elastic

Explanation

The correct answer is price elastic.

2859EconomicsMedium

A linear consumption function with a positive slope less than one means that if income increases consumption will?

Aincrease

Bnot change

Cfluctuate

Dfall

Correct answer

A. increase

Explanation

The correct answer is increase.

2860EconomicsMedium

In theory communism calls for________?

Aabolition of private property

Bintense nationalism

Cmilitary expansionism

Dthe creation of a new ruling class

Correct answer

A. abolition of private property

Explanation

The correct answer is abolition of private property.

An increase in the budget deficit that causes the government to increase its borrowing?

AShifts the supply of loanable funds to the right

BShift the demand for loanable funds to the right

CShift the supply of loanable funds to the left

DShift the demand for loandbale funds to the left

Correct answer

C. Shift the supply of loanable funds to the left

Explanation

The correct answer is Shift the supply of loanable funds to the left.