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2961EconomicsMedium

Which of the following is not a problem in comparing developed and developing countries GNP?

AGNP in understated for developing countries since many of their labor intensive good have no impact on exchange rate since they are not traded

BGNP is understated for developed countries, since a number of items included in their national incomes are intermediate goods

CThe economic contribution of a housewife is a peasant family may not be measured is GNP is poor country

DGNP is overstated for for countries where the price of foreign exchange is less than market clearing price

Correct answer

B. GNP is understated for developed countries, since a number of items included in their national incomes are intermediate goods

Explanation

The correct answer is GNP is understated for developed countries, since a number of items included in their national incomes are intermediate goods.

2962EconomicsMedium

The Phillips curve shows the trade-off between and ?

Athe inflation rate, the unemployment rate

Boutput, employment

Cinterest rates, output

Dthe inflation rate, interest rates

Correct answer

A. the inflation rate, the unemployment rate

Explanation

The correct answer is the inflation rate, the unemployment rate.

2963EconomicsMedium

Which of the following colonial policy contribute further to today’s agricultural underdevelopment in Africa?

AI and III only

BI and II only

CIII and IV only

DII and III only

Correct answer

C. III and IV only

Explanation

The correct answer is III and IV only.

2964EconomicsMedium

Increase unemployment benefits and less incentive to work would?

Ashift aggregate supply to the left

Bshift aggregate demand to the right

Cshift aggregate demand to the left

Dshift aggregate supply to the right

Correct answer

D. shift aggregate supply to the right

Explanation

The correct answer is shift aggregate supply to the right.

2965EconomicsMedium

Government granted monetary assistance to a person or a group in support of an enterprise regarded as being in public interest. This is called subsidy. Point out the statement which is also a subsidy?

AFinancial assistance given to small companies

BFinancial assistance given to poor people

CFinancial assistance given to aged people

DFinancial assistance given by one person or government to another

Correct answer

D. Financial assistance given by one person or government to another

Explanation

The correct answer is Financial assistance given by one person or government to another.

2966EconomicsMedium

Which of the following is not required while computing Gross National Product (GNP)?

ANet foreign investment

BPrivate investment

CNone of the above

DPer capita income of citizens

Correct answer

D. Per capita income of citizens

Explanation

The correct answer is Per capita income of citizens.

2967EconomicsMedium

If a production function exhibits constant returns to scale?

Adoubling all of the inputs has absolutely no impact on output because output is constant

Bdoubling all of the input’s doubles output

Cdoubling all of the inputs more than doubles output due to the catch-up effect

Ddoubling all of the inputs less than doubles output due to diminishing returns

Correct answer

B. doubling all of the input’s doubles output

Explanation

The correct answer is doubling all of the input’s doubles output.

2968EconomicsMedium

Balance of sheet is understood as?

APerformance of a company

BAccurate economic position

CProfit in a year

DStatements of accounts that shows debit and credit accounts under the broad heads

Correct answer

D. Statements of accounts that shows debit and credit accounts under the broad heads

Explanation

The correct answer is Statements of accounts that shows debit and credit accounts under the broad heads.

2969EconomicsMedium

The monopolist’s supply curve?

Ais the upward-sloping portion of the average total cost curve

BThe upward-sloping portion of the average variable cost

Cdoes not exist

Dis the marginal cost curve above average total cost

Eis the marginal cost curve above average variable cost?

Correct answer

C. does not exist

Explanation

The correct answer is does not exist.

2970EconomicsMedium

In developed countries, tariffs on raw materials tend to be?

Ahigher than on manufactured goods

Bhighest of all

Clower than on manufactured goods

Dequal to tariffs on manufactured goods

Correct answer

C. lower than on manufactured goods

Explanation

The correct answer is lower than on manufactured goods.

Which of the following is not a problem in comparing developed and developing countries GNP?

AGNP in understated for developing countries since many of their labor intensive good have no impact on exchange rate since they are not traded

BGNP is understated for developed countries, since a number of items included in their national incomes are intermediate goods

CThe economic contribution of a housewife is a peasant family may not be measured is GNP is poor country

DGNP is overstated for for countries where the price of foreign exchange is less than market clearing price

Correct answer

B. GNP is understated for developed countries, since a number of items included in their national incomes are intermediate goods

Explanation

The correct answer is GNP is understated for developed countries, since a number of items included in their national incomes are intermediate goods.

Government granted monetary assistance to a person or a group in support of an enterprise regarded as being in public interest. This is called subsidy. Point out the statement which is also a subsidy?

AFinancial assistance given to small companies

BFinancial assistance given to poor people

CFinancial assistance given to aged people

DFinancial assistance given by one person or government to another

Correct answer

D. Financial assistance given by one person or government to another

Explanation

The correct answer is Financial assistance given by one person or government to another.

If a production function exhibits constant returns to scale?

Adoubling all of the inputs has absolutely no impact on output because output is constant

Bdoubling all of the input’s doubles output

Cdoubling all of the inputs more than doubles output due to the catch-up effect

Ddoubling all of the inputs less than doubles output due to diminishing returns

Correct answer

B. doubling all of the input’s doubles output

Explanation

The correct answer is doubling all of the input’s doubles output.

Balance of sheet is understood as?

APerformance of a company

BAccurate economic position

CProfit in a year

DStatements of accounts that shows debit and credit accounts under the broad heads

Correct answer

D. Statements of accounts that shows debit and credit accounts under the broad heads

Explanation

The correct answer is Statements of accounts that shows debit and credit accounts under the broad heads.

The monopolist’s supply curve?

Ais the upward-sloping portion of the average total cost curve

BThe upward-sloping portion of the average variable cost

Cdoes not exist

Dis the marginal cost curve above average total cost

Eis the marginal cost curve above average variable cost?

Correct answer

C. does not exist

Explanation

The correct answer is does not exist.

Economics MCQs with Explanations

Which of the following is not a problem in comparing developed and developing countries GNP?

The Phillips curve shows the trade-off between ________ and ________?

Which of the following colonial policy contribute further to today’s agricultural underdevelopment in Africa?

Increase unemployment benefits and less incentive to work would?

Government granted monetary assistance to a person or a group in support of an enterprise regarded as being in public interest. This is called subsidy. Point out the statement which is also a subsidy?

Which of the following is not required while computing Gross National Product (GNP)?

If a production function exhibits constant returns to scale?

Balance of sheet is understood as?

The monopolist’s supply curve?

In developed countries, tariffs on raw materials tend to be?

Economics MCQs with Explanations

Which of the following is not a problem in comparing developed and developing countries GNP?

The Phillips curve shows the trade-off between ________ and ________?

Which of the following colonial policy contribute further to today’s agricultural underdevelopment in Africa?

Increase unemployment benefits and less incentive to work would?

Government granted monetary assistance to a person or a group in support of an enterprise regarded as being in public interest. This is called subsidy. Point out the statement which is also a subsidy?

Which of the following is not required while computing Gross National Product (GNP)?

If a production function exhibits constant returns to scale?

Balance of sheet is understood as?

The monopolist’s supply curve?

In developed countries, tariffs on raw materials tend to be?

The Phillips curve shows the trade-off between and ?

The Phillips curve shows the trade-off between and ?