Economics MCQs with explanations

Question 1

Starting from a position where the nation’s money demand equals the money supply and its balance of payments is in equilibrium economic theory suggests that the nation’s balance of payments would move into a surplus position if there occurred in the nation a (an)?

Accepted Answer

increase in the money demand

Question 2

For perfect competition to work there must be?

Accepted Answer

all of the above

Question 3

For the Central bank to keep the interest rat unchanged as the government increase spending, the Central Bank must continue to?

Accepted Answer

increase the money supply

Question 4

The emergence of Japan as a world economic power has been based mostly on Japan’s?

Accepted Answer

business enterprise and organization

Question 5

Scientists agree that________?

Accepted Answer

all of humankind is descended from the same common stock

Question 6

The term “ecclesia” means________?

Accepted Answer

a state religion

Question 7

The negative effect on the economy that occurs when average tax rates increase because taxpayers have moved into higher income brackets during an expansion is?

Accepted Answer

the Laffer curves

Question 8

The European Monetary Union is an example of a?

Accepted Answer

monetary union

Question 9

Today advertising captures about ________ percent of total promotion spending?

Accepted Answer

23

Question 10

What was the crude birth rate of 1998?

Accepted Answer

30.5 per 1000

Economics MCQs with Explanations