Study & Learn

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.

350 of 4,520MCQs reviewed

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

351EconomicsMedium

Technological improvements in agriculture that shift the supply of agricultural commodities to the right tend to?

Areduce total revenue to farmers as a whole because the demand for food is elastic

Breduce total revenue to farmers as a whole because the demand for food is inelastic

Cincrease total revenue to farmers as a whole because the demand for food is elastic

Dincrease total revenue to farmers as whole because the demand for food is inelastic

Correct answer

B. reduce total revenue to farmers as a whole because the demand for food is inelastic

Explanation

The correct answer is reduce total revenue to farmers as a whole because the demand for food is inelastic.

352EconomicsMedium

Which of the following countries is the leading producer of rice?

AAustralia

BCuba

CArgentina

DChina

Correct answer

D. China

Explanation

The correct answer is China.

353EconomicsMedium

Demand curves are derived while holding constant?

Aincome and tastes

Bincomes, tastes, and the price of other goods.

Ctastes and the price of other goods

Dincome, tastes, and the price of the good.

Correct answer

B. incomes, tastes, and the price of other goods.

Explanation

The correct answer is incomes, tastes, and the price of other goods..

354EconomicsMedium

Which one is the main source of foreign exchange earning?

Amanufacturing

Btextile

Cagriculture

Dforeign remittances

Correct answer

C. agriculture

Explanation

The correct answer is agriculture.

355EconomicsMedium

The type of foreign policy decisions made by the governmental bureaucracy fall into the category of________?

Aadministrative foreign policy

Bconstructive foreign policy

Ccrisis decisions

Dlegislative decisions

Correct answer

A. administrative foreign policy

Explanation

The correct answer is administrative foreign policy.

356EconomicsMedium

South Africa is the chief exporter of?

ACoffee

BDiamond

CGold

DCopper

Correct answer

C. Gold

Explanation

The correct answer is Gold.

357EconomicsMedium

Which of the following iron has got the highest carbon content?

AStainless Steel

BMild Steel

CWrought Iron

DCast Iron

Correct answer

D. Cast Iron

Explanation

The correct answer is Cast Iron.

358EconomicsMedium

Which situation has contributed most recent Japanese economic growth?

AThe Japanese government and Japanese businesses have cooperated with each other

BJapanese citizens save less of their incomes than the citizens of other industrialized nation do

CThe Japanese government has place limits on Japanese exports

DJapanese industries spend very little on the research and development of new products

Correct answer

A. The Japanese government and Japanese businesses have cooperated with each other

Explanation

The correct answer is The Japanese government and Japanese businesses have cooperated with each other.

359EconomicsMedium

Which of the following statements is true?

AA stock index is a directory used to locate information about selected stocks.

BGovernment bonds pay less interest than comparable corporate bounds

CInvestment funds are riskier than single stock purchases because the performances of so many different firms can affect the return of a mutual fund

DLong-term bonds tend to pay less interest than short-term bonds

Correct answer

B. Government bonds pay less interest than comparable corporate bounds

Explanation

The correct answer is Government bonds pay less interest than comparable corporate bounds.

360EconomicsMedium

A market is defined as perfectly contestable if?

Aentry to it and exit from it are both costless

Bentry to ti costless but exist from it is costly

Centry to it and exit from it are both costly

Dentry to it is costly but exit from it is costless

Correct answer

A. entry to it and exit from it are both costless

Explanation

The correct answer is entry to it and exit from it are both costless.

Technological improvements in agriculture that shift the supply of agricultural commodities to the right tend to?

Areduce total revenue to farmers as a whole because the demand for food is elastic

Breduce total revenue to farmers as a whole because the demand for food is inelastic

Cincrease total revenue to farmers as a whole because the demand for food is elastic

Dincrease total revenue to farmers as whole because the demand for food is inelastic

Correct answer

B. reduce total revenue to farmers as a whole because the demand for food is inelastic

Explanation

The correct answer is reduce total revenue to farmers as a whole because the demand for food is inelastic.

Which situation has contributed most recent Japanese economic growth?

AThe Japanese government and Japanese businesses have cooperated with each other

BJapanese citizens save less of their incomes than the citizens of other industrialized nation do

CThe Japanese government has place limits on Japanese exports

DJapanese industries spend very little on the research and development of new products

Correct answer

A. The Japanese government and Japanese businesses have cooperated with each other

Explanation

The correct answer is The Japanese government and Japanese businesses have cooperated with each other.

Which of the following statements is true?

AA stock index is a directory used to locate information about selected stocks.

BGovernment bonds pay less interest than comparable corporate bounds

CInvestment funds are riskier than single stock purchases because the performances of so many different firms can affect the return of a mutual fund

DLong-term bonds tend to pay less interest than short-term bonds

Correct answer

B. Government bonds pay less interest than comparable corporate bounds

Explanation

The correct answer is Government bonds pay less interest than comparable corporate bounds.

A market is defined as perfectly contestable if?

Aentry to it and exit from it are both costless

Bentry to ti costless but exist from it is costly

Centry to it and exit from it are both costly

Dentry to it is costly but exit from it is costless

Correct answer

A. entry to it and exit from it are both costless

Explanation

The correct answer is entry to it and exit from it are both costless.