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Economics MCQs with Explanations

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3191EconomicsMedium

Country with the largest GNP (Gross National Product) is:________?

AChina

BJapan

CUnited States

DGermany

Correct answer

C. United States

Explanation

The correct answer is United States.

3192EconomicsMedium

When one knows the roles that one is expected to play and is willing and able to do so one is________?

Aa significant other

Bconditioned

Csuccessfully socialized

Dbrainwashed

Correct answer

C. successfully socialized

Explanation

The correct answer is successfully socialized.

3193EconomicsMedium

Under Which of the following conditions would you prefer to be the borrower?

AThe nominal rate of interest is 15 percent and the inflation rate is 14 percent

BThe nominal rate of interest is 20 percent and the inflation rate is 25 percent

CThe nominal rate of interest is 12 percent and the inflation rate is 9 percent

DThe nominal rate of interest is 5 percent and the inflation rate is 1 percent

Correct answer

B. The nominal rate of interest is 20 percent and the inflation rate is 25 percent

Explanation

The correct answer is The nominal rate of interest is 20 percent and the inflation rate is 25 percent.

3194EconomicsMedium

Approximately how many people inhabit the earth?

A6 billion

B1.2 billion

C12 billion

D50 billion

Correct answer

A. 6 billion

Explanation

The correct answer is 6 billion.

3195EconomicsMedium

If people have rational expectations a monetary policy contraction that is announced and is credible could?

AIncrease inflation but would decrease unemployment by an unusually large amount

Bincrease inflation with little or no decrease in unemployment

Creduce inflation with little or no increase in unemployment

Dreduce inflation but it would increase unemployment by an unusually large amount

Correct answer

C. reduce inflation with little or no increase in unemployment

Explanation

The correct answer is reduce inflation with little or no increase in unemployment.

3196EconomicsMedium

Which of the following payment instruments introduced by the banks is known as plastic money?

AGift Cheques

BBearer cheques

CDemand Drafts

DCredit Cards

Correct answer

D. Credit Cards

Explanation

The correct answer is Credit Cards.

3197EconomicsMedium

Prototypes of international agricultural research centers are the?

AIv only

BIII and IV only

CI and II only

DI only

Correct answer

C. I and II only

Explanation

The correct answer is I and II only.

3198EconomicsMedium

Under the Common Agricultural Policy exports of any surplus quantities EU produce are encouraged through the usage of?

Aexport subsidies

Bvariable levies

Ccountertrade

Dtrigger prices

Correct answer

A. export subsidies

Explanation

The correct answer is export subsidies.

3199EconomicsMedium

Who is called Father of Economics?

ADavid smith

BDavid Ricardo

CAdam Ricardo

DAdam smith

Correct answer

D. Adam smith

Explanation

The correct answer is Adam smith.

3200EconomicsMedium

If a cobbler buys leather for Rs100 and thread for Rs50 and uses them to produce and sell Rs500 worth of shoes to consumers the contribution to GDP is?

ARs500

BRs100

CRs50

DRs650

Correct answer

A. Rs500

Explanation

The correct answer is Rs500.

Under Which of the following conditions would you prefer to be the borrower?

AThe nominal rate of interest is 15 percent and the inflation rate is 14 percent

BThe nominal rate of interest is 20 percent and the inflation rate is 25 percent

CThe nominal rate of interest is 12 percent and the inflation rate is 9 percent

DThe nominal rate of interest is 5 percent and the inflation rate is 1 percent

Correct answer

B. The nominal rate of interest is 20 percent and the inflation rate is 25 percent

Explanation

The correct answer is The nominal rate of interest is 20 percent and the inflation rate is 25 percent.

If people have rational expectations a monetary policy contraction that is announced and is credible could?

AIncrease inflation but would decrease unemployment by an unusually large amount

Bincrease inflation with little or no decrease in unemployment

Creduce inflation with little or no increase in unemployment

Dreduce inflation but it would increase unemployment by an unusually large amount

Correct answer

C. reduce inflation with little or no increase in unemployment

Explanation

The correct answer is reduce inflation with little or no increase in unemployment.