MCQs

Economics MCQs with Explanations

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3121EconomicsMedium

Suburban growth was based on________?

Amovement of factories out of the cities

Bthe development of automobile travel

Cwartime industrial expansions

Dexpensive suburban property

Correct answer

B. the development of automobile travel

Explanation

The correct answer is the development of automobile travel.

3122EconomicsMedium

An example of public good is?

Apreservation of wetlands

Ba public utility.

Ca book

Da beautifully landscaped lawn.

Correct answer

A. preservation of wetlands

Explanation

The correct answer is preservation of wetlands.

3123EconomicsMedium

An adjustment is made in wages that corresponds with the change in the cost of living. What this adjustment is called?

ACost of living adjustment

BFree adjustment

CComparative adjustment

DCost effective adjustment

Correct answer

A. Cost of living adjustment

Explanation

The correct answer is Cost of living adjustment.

3124EconomicsMedium

A group of modern economists who believe that markets clear very rapidly and that expanding the money supply will always increase prices rather than employment are the?

Anew classical school

Bpost-keynesians

Cmonetarists

DKeynesians

Correct answer

A. new classical school

Explanation

The correct answer is new classical school.

3125EconomicsMedium

Tuvalu is composed of 9 coral atolls along a 360-mile chain in Polynesia They gained independence in 1978 The former Ellice Island are home to 9,700 people if GNP of Tuvalu is $300 million in 2005 GNP per capital is?

A32.333

B300 000 000 / 9700

C9700 (1978 / 2005)

D300 / 360

Correct answer

B. 300 000 000 / 9700

Explanation

The correct answer is 300 000 000 / 9700.

3126EconomicsMedium

When supply and demand are essentially equal the economy is said to be in________?

Aa recession

Babeyance

Cequivalence

Dequilibrium

Correct answer

D. equilibrium

Explanation

The correct answer is equilibrium.

3127EconomicsMedium

When economists use the term real business cycle theory they are suggesting that business cycles are caused by?

AShifts in aggregate supply

Bbusiness expectations

Cbusiness confidence

Dchanges in export demand due to the state of the world economy

Correct answer

A. Shifts in aggregate supply

Explanation

The correct answer is Shifts in aggregate supply.

3128EconomicsMedium

The In suppliers are most likely to get nervous and feel pressure to put their best foot forward in which of the following types of buying situations?

Amodified rebuy

Bnew task buying

Cindirect rebuy

Dstraight rebuy

Correct answer

A. modified rebuy

Explanation

The correct answer is modified rebuy.

3129EconomicsMedium

Adam Smith advocated?

AI and II only

BI, II and III only

CII and III only

DI, II, III and IV

Correct answer

D. I, II, III and IV

Explanation

The correct answer is I, II, III and IV.

3130EconomicsMedium

Social institutions________?

Aare ingrained patterns of behavior representing solutions to universal human needs

Ball of the above

Cmake up cultural components

Dare things like banks and schools

Correct answer

A. are ingrained patterns of behavior representing solutions to universal human needs

Explanation

The correct answer is are ingrained patterns of behavior representing solutions to universal human needs.

Social institutions________?

Aare ingrained patterns of behavior representing solutions to universal human needs

Ball of the above

Cmake up cultural components

Dare things like banks and schools

Correct answer

A. are ingrained patterns of behavior representing solutions to universal human needs

Explanation

The correct answer is are ingrained patterns of behavior representing solutions to universal human needs.