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Economics MCQs with Explanations

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3111EconomicsMedium

Assume there is no government or foreign setor, If the MPC is 75 a Rs20 million decrease in planned investment will cause aggregate output to decrease by?

ARs20 million

BRs 15 million

CRs80 million

DRs26.67 million

Correct answer

C. Rs80 million

Explanation

The correct answer is Rs80 million.

3112EconomicsMedium

The cottage or putting-out system refers to________?

AThe fact that in early industrialization work was done in the home

Bthe housing given factory workers

CThe way young people were put out to go work in factories

Da type of architecture popular in Britain

Correct answer

A. The fact that in early industrialization work was done in the home

Explanation

The correct answer is The fact that in early industrialization work was done in the home.

3113EconomicsMedium

Which one of the following countries is not a high-income country?

AMexico

BCanada

CUnited Kingdom

DGermany

Correct answer

A. Mexico

Explanation

The correct answer is Mexico.

3114EconomicsMedium

Which soil is best suited for deep rooted crops?

ARed Soil

BLiterate soil

CNone of these

DBlack soil

Correct answer

D. Black soil

Explanation

The correct answer is Black soil.

3115EconomicsMedium

The competitive advantage from a devaluation is likely to be offset by and ?

Ahigher wage increases lower import volumes

Blower export prices, lower imports volumes

Chigher import prices, lower export prices

Dhigher import prices, higher wages increases

Correct answer

D. higher import prices, higher wages increases

Explanation

The correct answer is higher import prices, higher wages increases.

3116EconomicsMedium

Which is the main staple food of the population and largest grain crop of the country?

Awheat

Brice

CNone of these

Dpulses

Correct answer

A. wheat

Explanation

The correct answer is wheat.

3117EconomicsMedium

The annual requirement of edible oil is nearly?

A1.6 million tones

B1.7 million tones

C1.5 million tones

D1.9 million tones

Correct answer

D. 1.9 million tones

Explanation

The correct answer is 1.9 million tones.

3118EconomicsMedium

________ is said to exist when the formation of a regional trading group leads to the reduction of trade with nonmember countries in favor of member countries?

Atrade exclusion

Btrade distortion

Ctrade diversion

Dtrade creation

Correct answer

C. trade diversion

Explanation

The correct answer is trade diversion.

3119EconomicsMedium

The Phrase “twin deficits” refers to?

AThe fact that if a country has a trade deficit, its trading partners must also have trade deficits

BA country’s trade deficit and its government budget deficit

Cthe equality of a country’s saving deficit and its investment deficit

Da country’s trade deficit and its net capital outflow deficit

Correct answer

B. A country’s trade deficit and its government budget deficit

Explanation

The correct answer is A country’s trade deficit and its government budget deficit.

3120EconomicsMedium

An export subsidy should have the opposite effect of?

AAn increase in Private saving

BA tariff

CA government budget deficit

DCapital flight

Correct answer

B. A tariff

Explanation

The correct answer is A tariff.

The cottage or putting-out system refers to________?

AThe fact that in early industrialization work was done in the home

Bthe housing given factory workers

CThe way young people were put out to go work in factories

Da type of architecture popular in Britain

Correct answer

A. The fact that in early industrialization work was done in the home

Explanation

The correct answer is The fact that in early industrialization work was done in the home.

The competitive advantage from a devaluation is likely to be offset by ________ and ________?

Ahigher wage increases lower import volumes

Blower export prices, lower imports volumes

Chigher import prices, lower export prices

Dhigher import prices, higher wages increases

Correct answer

D. higher import prices, higher wages increases

Explanation

The correct answer is higher import prices, higher wages increases.

The Phrase “twin deficits” refers to?

AThe fact that if a country has a trade deficit, its trading partners must also have trade deficits

BA country’s trade deficit and its government budget deficit

Cthe equality of a country’s saving deficit and its investment deficit

Da country’s trade deficit and its net capital outflow deficit

Correct answer

B. A country’s trade deficit and its government budget deficit

Explanation

The correct answer is A country’s trade deficit and its government budget deficit.