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Economics MCQs with Explanations

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3321EconomicsMedium

PPP is?

Aa measure of income inequality

BGDP divided by exchange rate

Ca theory that tells us that exchanged rates between currencies are in equilibrium when their purchasing power is the same in both countries

Da measure of infant mortality in developing countries

Correct answer

C. a theory that tells us that exchanged rates between currencies are in equilibrium when their purchasing power is the same in both countries

Explanation

The correct answer is a theory that tells us that exchanged rates between currencies are in equilibrium when their purchasing power is the same in both countries.

3322EconomicsMedium

Which of the following is NOT a common reason for a merger?

ATo achieve faster growth

BTo reduce uncertainty

CTo achieve economies of scale

DTo increase competition

Correct answer

D. To increase competition

Explanation

The correct answer is To increase competition.

3323EconomicsMedium

Politics may be defined as________?

Athe process by which individuals and groups acquire power

Ball of the above

Cthe statuses and roles that enforce the law

Dthe legitimate use of force within a territory

Correct answer

A. the process by which individuals and groups acquire power

Explanation

The correct answer is the process by which individuals and groups acquire power.

3324EconomicsMedium

The budget deficit tends to decrease then?

AGDP decrease slightly

BGDP decrease rapidly

CGDP increase

DGDP remains unchanged

Correct answer

C. GDP increase

Explanation

The correct answer is GDP increase.

3325EconomicsMedium

What was the third cattle producing country?

AUnited States

BChina

CArgentina

DIndia

Correct answer

A. United States

Explanation

The correct answer is United States.

3326EconomicsMedium

In his empirical tests, Wassily Leontief used an input-output table to?

Acalculate the capital productivity of American capital relative to foreign capital

Bcalculate the capital and labor required to produce $1 million of U.S exports and imports

CAll of the above

Dcalculate the labor productivity of America workers relative to foreign workers

Correct answer

B. calculate the capital and labor required to produce $1 million of U.S exports and imports

Explanation

The correct answer is calculate the capital and labor required to produce $1 million of U.S exports and imports.

3327EconomicsMedium

Refer to Exhibit 6.If People in the economy expect inflation to be 6 percent but inflation turn out to be 3 percent the economy is operating at point?

Correct answer

A. F

Explanation

The correct answer is F.

3328EconomicsMedium

The difference in attitudes of whites and African Americans is related to________?

Asocial status

Bnone of these

Cage

Dsocial class

Correct answer

C. age

Explanation

The correct answer is age.

3329EconomicsMedium

Many economics argue that resale price maintenance?

Aenhances the market power of the producer

Bis price fixing and therefore, is prohibited by law and enhances the market power of the producer

Chas a legitimate purpose of stopping discount retailers from free riding on the services provided by full services retailers?

Dis price fixing and, therefore is prohibited by law

Correct answer

C. has a legitimate purpose of stopping discount retailers from free riding on the services provided by full services retailers?

Explanation

The correct answer is has a legitimate purpose of stopping discount retailers from free riding on the services provided by full services retailers?.

3330EconomicsMedium

The classical conservative approach to stratification is that________?

Ainequality is the law of nature

Binequality results from exploitation

Cnone of the above

Dstratification must be legislated

Correct answer

A. inequality is the law of nature

Explanation

The correct answer is inequality is the law of nature.

PPP is?

Aa measure of income inequality

BGDP divided by exchange rate

Ca theory that tells us that exchanged rates between currencies are in equilibrium when their purchasing power is the same in both countries

Da measure of infant mortality in developing countries

Correct answer

C. a theory that tells us that exchanged rates between currencies are in equilibrium when their purchasing power is the same in both countries

Explanation

The correct answer is a theory that tells us that exchanged rates between currencies are in equilibrium when their purchasing power is the same in both countries.

Politics may be defined as________?

Athe process by which individuals and groups acquire power

Ball of the above

Cthe statuses and roles that enforce the law

Dthe legitimate use of force within a territory

Correct answer

A. the process by which individuals and groups acquire power

Explanation

The correct answer is the process by which individuals and groups acquire power.

In his empirical tests, Wassily Leontief used an input-output table to?

Acalculate the capital productivity of American capital relative to foreign capital

Bcalculate the capital and labor required to produce $1 million of U.S exports and imports

CAll of the above

Dcalculate the labor productivity of America workers relative to foreign workers

Correct answer

B. calculate the capital and labor required to produce $1 million of U.S exports and imports

Explanation

The correct answer is calculate the capital and labor required to produce $1 million of U.S exports and imports.

Many economics argue that resale price maintenance?

Aenhances the market power of the producer

Bis price fixing and therefore, is prohibited by law and enhances the market power of the producer

Chas a legitimate purpose of stopping discount retailers from free riding on the services provided by full services retailers?

Dis price fixing and, therefore is prohibited by law

Correct answer

C. has a legitimate purpose of stopping discount retailers from free riding on the services provided by full services retailers?

Explanation

The correct answer is has a legitimate purpose of stopping discount retailers from free riding on the services provided by full services retailers?.