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Economics MCQs with Explanations

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3011EconomicsMedium

Publics and public opinion________?

Aare more characteristic of complex societies than of simple ones

Bare more frequent in totalitarian societies than in democratic ones

Chave special meanings in traditional societies where conflicting issues are common

Dexpress the values of leaders of society

Correct answer

A. are more characteristic of complex societies than of simple ones

Explanation

The correct answer is are more characteristic of complex societies than of simple ones.

3012EconomicsMedium

A comparison of Japan’s policies before 1945 with the policies in effect after 1945 indicates that________?

Ademocratic institution hinder economic growth

Bdependence on foreign trade usually leads to a weakened national economy

Creduction in spending on military goods leads to economic depression

Dterritorial aggression is not necessary to secure national economic goals

Correct answer

D. territorial aggression is not necessary to secure national economic goals

Explanation

The correct answer is territorial aggression is not necessary to secure national economic goals.

3013EconomicsMedium

The practice of U.S corporations’ moving’s their production facilities abroad is called________?

Adiversification

BOligopoly

Cmultinationalism

Dinsourcing

Correct answer

C. multinationalism

Explanation

The correct answer is multinationalism.

3014EconomicsMedium

Which of the following is an example of a signal that is used to reveal private information?

AJosephine earns her MBA from the Harvard Business School

BAll of these answers are correct

CEnzo carefully chooses a special gift for Josephine

DLexus advertises its cars during the football World Cup Final.

Correct answer

B. All of these answers are correct

Explanation

The correct answer is All of these answers are correct.

3015EconomicsMedium

The Marginal Revenue Product is likely to be wage inelastic if?

ALabour costs are a high percentage of total costs

BDemand for the final product is price inelastic

CThere are many substitutes for the final product

DIt is relatively easy to substitute capital for labour

Correct answer

C. There are many substitutes for the final product

Explanation

The correct answer is There are many substitutes for the final product.

3016EconomicsMedium

If a group of countries abolish trade barriers between them and set same tariffs on goods coming in from other countries they are a?

Afree trade area

Bfederation

Ccustoms union

Dcommon market

Correct answer

C. customs union

Explanation

The correct answer is customs union.

3017EconomicsMedium

If the international terms of trade settle at a level that is between each country’s opportunity cost?

AOne country gain and the other country loses from trade

BOnly one country gains from trade

CThere is no basis for gainful trade for either country

DBoth countries gain from trade

Correct answer

D. Both countries gain from trade

Explanation

The correct answer is Both countries gain from trade.

3018EconomicsMedium

In 1989, the CPI was 124.0 in 1990, it was 130.7 What was the rate of inflation over this period?

AYou can’t tell without knowing the base year

B30.7 percent

C5.4 percent

D5.1 percent

Correct answer

C. 5.4 percent

Explanation

The correct answer is 5.4 percent.

3019EconomicsMedium

In many societies’ cannibalism is________?

Aa taboo

Ba cultural trait

Cmores

Da cultural complex

Correct answer

A. a taboo

Explanation

The correct answer is a taboo.

3020EconomicsMedium

If GNP per capita at constant prices for Ghana is US$360 and US$364 in 1996 and 1997 respectively, The real economic growth from 1996 to 1997 is?

A1.11%

B0.011%

C4%

D11%

Correct answer

A. 1.11%

Explanation

The correct answer is 1.11%.

Publics and public opinion________?

Aare more characteristic of complex societies than of simple ones

Bare more frequent in totalitarian societies than in democratic ones

Chave special meanings in traditional societies where conflicting issues are common

Dexpress the values of leaders of society

Correct answer

A. are more characteristic of complex societies than of simple ones

Explanation

The correct answer is are more characteristic of complex societies than of simple ones.

A comparison of Japan’s policies before 1945 with the policies in effect after 1945 indicates that________?

Ademocratic institution hinder economic growth

Bdependence on foreign trade usually leads to a weakened national economy

Creduction in spending on military goods leads to economic depression

Dterritorial aggression is not necessary to secure national economic goals

Correct answer

D. territorial aggression is not necessary to secure national economic goals

Explanation

The correct answer is territorial aggression is not necessary to secure national economic goals.

Which of the following is an example of a signal that is used to reveal private information?

AJosephine earns her MBA from the Harvard Business School

BAll of these answers are correct

CEnzo carefully chooses a special gift for Josephine

DLexus advertises its cars during the football World Cup Final.

Correct answer

B. All of these answers are correct

Explanation

The correct answer is All of these answers are correct.

The Marginal Revenue Product is likely to be wage inelastic if?

ALabour costs are a high percentage of total costs

BDemand for the final product is price inelastic

CThere are many substitutes for the final product

DIt is relatively easy to substitute capital for labour

Correct answer

C. There are many substitutes for the final product

Explanation

The correct answer is There are many substitutes for the final product.