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Economics MCQs with Explanations

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3541EconomicsMedium

If desired spending in the economy exceeds income we would expect?

Athe MPC to change

Bhouseholds to save more

Cfirms to produce more

Dfirms to produce less

Correct answer

C. firms to produce more

Explanation

The correct answer is firms to produce more.

3542EconomicsMedium

In 2000, China and India constituted about ________ of the world’s population?

A80%

B40%

C0.10%

D10%

Correct answer

B. 40%

Explanation

The correct answer is 40%.

3543EconomicsMedium

What was the top buffalo producing country?

ANepal

BChina

CIndia

DPakistan

Correct answer

C. India

Explanation

The correct answer is India.

3544EconomicsMedium

An increase in aggregate demand if aggregate supply is totally inelastic will?

Aincrease output and price

Bincrease price but not output

Cincrease output but not price

Ddecrease output and price

Correct answer

B. increase price but not output

Explanation

The correct answer is increase price but not output.

3545EconomicsMedium

Name the organization in which people are associated together for a common purpose under a common name. This organization is recognized and created by law?

ACorporation

BCooperative

CLimited Company

DCompany

Correct answer

A. Corporation

Explanation

The correct answer is Corporation.

3546EconomicsMedium

Which of the following is not a possible cost of high fertility rates and rapid population growth?

Aa higher labor force growth rate and higher unemployment

Ba working population that must support a large number of dependents

Cincreasing returns to natural resources with a direct impact on average food consumption

Dincreased urbanization and congestion

Correct answer

C. increasing returns to natural resources with a direct impact on average food consumption

Explanation

The correct answer is increasing returns to natural resources with a direct impact on average food consumption.

3547EconomicsMedium

If foreign manufacturing costs and profit margins in response to a depreciation in the U.S dollar the effect of these actions is to?

Alengthen the amount of time in which the depreciation leads to smaller trade deficit

Blengthen the amount of time in which the depreciation leads to smaller trade surplus

Cshorten the amount of time in which the depreciation leads to smaller trade deficit

Dshorten the amount of time in which the depreciation leads to smaller trade surplus

Correct answer

A. lengthen the amount of time in which the depreciation leads to smaller trade deficit

Explanation

The correct answer is lengthen the amount of time in which the depreciation leads to smaller trade deficit.

3548EconomicsMedium

The first technological revolution________?

Atook place in 1750

Bturned people from food gatherers to food producers

Coccurred in England

Dbegan with the invention of the steam engine

Correct answer

B. turned people from food gatherers to food producers

Explanation

The correct answer is turned people from food gatherers to food producers.

3549EconomicsMedium

When did the United States government begin to function as a cohesive unit?

AAt the Inauguration of George Washington in 1789

BBoth B and C

CAt the signing of the Declaration of Independence

DAfter the Constitutional Convention of 1788

Correct answer

B. Both B and C

Explanation

The correct answer is Both B and C.

3550EconomicsMedium

What is called a country’s decision to allow its currency value to change freely?

ALiberal exchanged rate

BPegged exchange rate

COpen exchange rate

DFloating exchange rate

Correct answer

D. Floating exchange rate

Explanation

The correct answer is Floating exchange rate.

Which of the following is not a possible cost of high fertility rates and rapid population growth?

Aa higher labor force growth rate and higher unemployment

Ba working population that must support a large number of dependents

Cincreasing returns to natural resources with a direct impact on average food consumption

Dincreased urbanization and congestion

Correct answer

C. increasing returns to natural resources with a direct impact on average food consumption

Explanation

The correct answer is increasing returns to natural resources with a direct impact on average food consumption.

If foreign manufacturing costs and profit margins in response to a depreciation in the U.S dollar the effect of these actions is to?

Alengthen the amount of time in which the depreciation leads to smaller trade deficit

Blengthen the amount of time in which the depreciation leads to smaller trade surplus

Cshorten the amount of time in which the depreciation leads to smaller trade deficit

Dshorten the amount of time in which the depreciation leads to smaller trade surplus

Correct answer

A. lengthen the amount of time in which the depreciation leads to smaller trade deficit

Explanation

The correct answer is lengthen the amount of time in which the depreciation leads to smaller trade deficit.