Study & Learn

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.

300 of 4,520MCQs reviewed

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

301EconomicsMedium

Capitalisms roots can be found in________?

Adialectic materialism

Bmachine-based production

Cfeudal agriculture

DChristianity

Correct answer

B. machine-based production

Explanation

The correct answer is machine-based production.

302EconomicsMedium

The Democrats lost the presidential elections in 1984 and 1988 because of________?

Aloss of direct contact with the electorate

Bsplit ticket voting

Crunning the wrong candidates

Dhuge political gaffes

Correct answer

C. running the wrong candidates

Explanation

The correct answer is running the wrong candidates.

303EconomicsMedium

The booming of North Seas’ gas export revenues in the 1970s that appreciated the guilder, making industrial export more costly in foreign currencies and increasing foreign competition and unemployment is known as?

AEconomic turmoil

BTrade deficit

CBlind river disease

DDutch disease

Correct answer

D. Dutch disease

Explanation

The correct answer is Dutch disease.

304EconomicsMedium

A fall in price?

AMay be caused by a fall in demand

BWill cause an outward shift of supply

CLeads to a higher level of production

DWill cause an inward shift of demand

Correct answer

A. May be caused by a fall in demand

Explanation

The correct answer is May be caused by a fall in demand.

305EconomicsMedium

Which index combines measures of calorie availability (in relation to requirement) the growth of per capita daily energy supply food production food staples self-sufficiency, and variability of food production and consumption?

Afood growth index

Bfood security index

Cfood sufficiency index

Dfood self-intake index

Correct answer

B. food security index

Explanation

The correct answer is food security index.

306EconomicsMedium

For year the U.S government levied quotas on inexpensive oil imported from the Middle East The quotas led to cost increases for U.S consumers totaling $3 billion for oil products. An apparent justification of this policy was that?

AU.S oil was of superior quality and merited higher prices

BThe U.S government needed the quota revenue to balance its budget

Cone should not be too dependent on foreign suppliers of crucial resources

DU.S oil companies and workers deserved higher incomes

Correct answer

C. one should not be too dependent on foreign suppliers of crucial resources

Explanation

The correct answer is one should not be too dependent on foreign suppliers of crucial resources.

307EconomicsMedium

IF Unemployment insurance were so generous that it paid laid off workers 95 percent of their regular salary?

AThe official unemployment rate would probably overstate true unemployment

BThere would be no impact on the official unemployment rate

CThe official unemployment rate would probably understate true unemployment

DFrictional Unemployment would fall

ENone of these answers

Correct answer

A. The official unemployment rate would probably overstate true unemployment

Explanation

The correct answer is The official unemployment rate would probably overstate true unemployment.

308EconomicsMedium

Suppose that Russia steel firms engage in dumping in the German market in terms of overall economic welfare, German welfare would ________ as the result of the dumping?

Aincrease

BNone of These

Cnot change

Ddecrease

Correct answer

A. increase

Explanation

The correct answer is increase.

309EconomicsMedium

In modern society death has acquired to some extent a sense of________?

Ameaninglessness

Bappropriateness

Cunnaturalness

Dordinariness

Correct answer

C. unnaturalness

Explanation

The correct answer is unnaturalness.

310EconomicsMedium

The main reason why land reform increase agricultural output is that is?

Aallows the farmers to set the prices for their agricultural products

Bencourages mechanization

Cmakes farmers owners of the land instead of tenants and owners’ farmers are more productive than tenant farmers

Denables farmers to escape the problem of diminishing return

Correct answer

C. makes farmers owners of the land instead of tenants and owners’ farmers are more productive than tenant farmers

Explanation

The correct answer is makes farmers owners of the land instead of tenants and owners’ farmers are more productive than tenant farmers.

For year the U.S government levied quotas on inexpensive oil imported from the Middle East The quotas led to cost increases for U.S consumers totaling $3 billion for oil products. An apparent justification of this policy was that?

AU.S oil was of superior quality and merited higher prices

BThe U.S government needed the quota revenue to balance its budget

Cone should not be too dependent on foreign suppliers of crucial resources

DU.S oil companies and workers deserved higher incomes

Correct answer

C. one should not be too dependent on foreign suppliers of crucial resources

Explanation

The correct answer is one should not be too dependent on foreign suppliers of crucial resources.

IF Unemployment insurance were so generous that it paid laid off workers 95 percent of their regular salary?

AThe official unemployment rate would probably overstate true unemployment

BThere would be no impact on the official unemployment rate

CThe official unemployment rate would probably understate true unemployment

DFrictional Unemployment would fall

ENone of these answers

Correct answer

A. The official unemployment rate would probably overstate true unemployment

Explanation

The correct answer is The official unemployment rate would probably overstate true unemployment.

The main reason why land reform increase agricultural output is that is?

Aallows the farmers to set the prices for their agricultural products

Bencourages mechanization

Cmakes farmers owners of the land instead of tenants and owners’ farmers are more productive than tenant farmers

Denables farmers to escape the problem of diminishing return

Correct answer

C. makes farmers owners of the land instead of tenants and owners’ farmers are more productive than tenant farmers

Explanation

The correct answer is makes farmers owners of the land instead of tenants and owners’ farmers are more productive than tenant farmers.