MCQs

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.

70%

3,170 of 4,520MCQs reviewed

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

3171EconomicsMedium

Firms undertake multinational operations in order to?

Amanufacture in nations they have difficult exporting to

BAll of the above

Cobtain necessary factor inputs

Dhire low-income workers

Correct answer

B. All of the above

Explanation

The correct answer is All of the above.

3172EconomicsMedium

If a long run average cost curve is falling form left to right this is an example of?

Athe minimum efficient scale

Bincreasing returns to scale

Cdecreasing returns to scale

Dconstant returns to scale

Correct answer

B. increasing returns to scale

Explanation

The correct answer is increasing returns to scale.

3173EconomicsMedium

According to the Heckscher-Ohlin model?

ANone of the above

BThe scarce factor necessarily gains from trade

CThe gainers from trade outnumber the losers from trade

Deveryone automatically gains from trade

Correct answer

C. The gainers from trade outnumber the losers from trade

Explanation

The correct answer is The gainers from trade outnumber the losers from trade.

3174EconomicsMedium

Natural resources are________?

Afinite

Bready to support many more billions of people

Cdispensable

Dinfinite

Correct answer

A. finite

Explanation

The correct answer is finite.

3175EconomicsMedium

Which of the following could not be described as an asymmetric macroeconomic shock?

ANone of these answers All of them are asymmetric macroeconomic shocks

BA sudden and substantial rise in prices on the world oil market

CAn epidemic of an animal disease in a country that significantly reduces the country’s agricultural output

DA sudden and substantial fall in the worldwide demand for French wine

Correct answer

B. A sudden and substantial rise in prices on the world oil market

Explanation

The correct answer is A sudden and substantial rise in prices on the world oil market.

3176EconomicsMedium

JCB (Which makes agricultural and construction equipment) has the opportunity to purchase a new factory today that will provide them with a Rs50 million return four years from now If prevailing interest rates are 6 percent, what is the maximum that the project can cost for JCB to be willing to undertake the project?

ARs 43,456,838

BRs 34,538,902

CRs 39,604,682

DRs 53,406,002

Correct answer

C. Rs 39,604,682

Explanation

The correct answer is Rs 39,604,682.

3177EconomicsMedium

Which of the following is likely to generate a compensating differential?

AOne employee is more attractive than another

BOne employee is more educated than another

COne employee works harder than another

DAll of these answers generated

EOne employee is willing to work the nightshift while another is not.

Correct answer

E. One employee is willing to work the nightshift while another is not.

Explanation

The correct answer is One employee is willing to work the nightshift while another is not..

3178EconomicsMedium

Interest groups have the following traits They________?

Aare only accountable to themselves

Bhave the goal of complete control of the government

Cpresent official candidates to the electorate

Dput their names on ballots

Correct answer

A. are only accountable to themselves

Explanation

The correct answer is are only accountable to themselves.

3179EconomicsMedium

A graph showing all the combinations of goods and services that can be produced if all of society’s resources are used efficiently is a?

AProduction possibility curve.

BCircular-flow diagram.

Ccapital consumption frontier.

DLorenz curve.

Correct answer

A. Production possibility curve.

Explanation

The correct answer is Production possibility curve..

3180EconomicsMedium

If the demand for coffee decreases as income decreases, coffee is?

Aa complementary good

Ba normal good

Can inferior good

Da substitute good

Correct answer

B. a normal good

Explanation

The correct answer is a normal good.

According to the Heckscher-Ohlin model?

ANone of the above

BThe scarce factor necessarily gains from trade

CThe gainers from trade outnumber the losers from trade

Deveryone automatically gains from trade

Correct answer

C. The gainers from trade outnumber the losers from trade

Explanation

The correct answer is The gainers from trade outnumber the losers from trade.

Which of the following could not be described as an asymmetric macroeconomic shock?

ANone of these answers All of them are asymmetric macroeconomic shocks

BA sudden and substantial rise in prices on the world oil market

CAn epidemic of an animal disease in a country that significantly reduces the country’s agricultural output

DA sudden and substantial fall in the worldwide demand for French wine

Correct answer

B. A sudden and substantial rise in prices on the world oil market

Explanation

The correct answer is A sudden and substantial rise in prices on the world oil market.

Which of the following is likely to generate a compensating differential?

AOne employee is more attractive than another

BOne employee is more educated than another

COne employee works harder than another

DAll of these answers generated

EOne employee is willing to work the nightshift while another is not.

Correct answer

E. One employee is willing to work the nightshift while another is not.

Explanation

The correct answer is One employee is willing to work the nightshift while another is not..