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Economics MCQs with Explanations

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321EconomicsMedium

An increase in consumer income will increase demand for a ________ but decrease demand for a?

Anormal good, complementary good

Binferior good normal good

Cnormal good inferior good

Dsubstitute good, inferior good

Correct answer

C. normal good inferior good

Explanation

The correct answer is normal good inferior good.

322EconomicsMedium

Term a tax or duty rebate on imported goods that are exported at a later date?

ARebut

BCustom

CDuty

DDrawback

Correct answer

D. Drawback

Explanation

The correct answer is Drawback.

323EconomicsMedium

An inferior good is one for which an increase in income causes a(n)?

Adecrease in demand

Bincrease in supply

Cincrease in demand

Ddecrease in supply

Correct answer

A. decrease in demand

Explanation

The correct answer is decrease in demand.

324EconomicsMedium

Advocates of industrial policy maintain that government should?

Apursue free trade as a policy that leads to maximum global efficiency

Bgrant subsidies to firms offering potential comparative advantage

Cincrease interest rates on loans made to firms in import-competing industries

Dprovide loans to domestic workers in exporting industries

Correct answer

B. grant subsidies to firms offering potential comparative advantage

Explanation

The correct answer is grant subsidies to firms offering potential comparative advantage.

325EconomicsMedium

The emphasis on rural virtues________?

Ahelped democratic representation in the states

Bis based on stereotypes

Chas been reinforced by recent studies

Dgave urban dwellers an inferiority complex

Correct answer

B. is based on stereotypes

Explanation

The correct answer is is based on stereotypes.

326EconomicsMedium

During Periods of rising inflation and rising interest rates we expect the demand for real cash to?

Afall

Bnot changes

Cfluctuates

Drise

Correct answer

D. rise

Explanation

The correct answer is rise.

327EconomicsMedium

What is called a place of work where all workers within a section must belong to a single official recognized trade union?

AMonopolized area

BClosed shop

CMonopolized market

DMonopolized shop

Correct answer

B. Closed shop

Explanation

The correct answer is Closed shop.

328EconomicsMedium

What is called an arrangement of workers machines, and equipment in which the product being assembled passes consecutively from operation to operation or the process in which finished products are turned out in a mechanically efficient, though impersonal, manner?

AAssembly line

BProduction line

CNone of them

DBoth of them

Correct answer

D. Both of them

Explanation

The correct answer is Both of them.

329EconomicsMedium

Advocates of the elitist approach believe that the ruling elite maintains its power by________?

Amanipulation of the masses

Bphysical force

Cnone of the above

Dexplaining the truth to the people

Correct answer

A. manipulation of the masses

Explanation

The correct answer is manipulation of the masses.

330EconomicsMedium

What is the total landmass of the country?

A78.98 million hectares

B87.98 million hectares

C98.87 million hectares

D89.98 million hectares

Correct answer

B. 87.98 million hectares

Explanation

The correct answer is 87.98 million hectares.

Advocates of industrial policy maintain that government should?

Apursue free trade as a policy that leads to maximum global efficiency

Bgrant subsidies to firms offering potential comparative advantage

Cincrease interest rates on loans made to firms in import-competing industries

Dprovide loans to domestic workers in exporting industries

Correct answer

B. grant subsidies to firms offering potential comparative advantage

Explanation

The correct answer is grant subsidies to firms offering potential comparative advantage.