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Economics MCQs with Explanations

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3671EconomicsMedium

Real business cycle theory suggests that ____ not important in explaining short-term fluctuations around actual output?

Apotential output is

Baggregate supply is

Caggregate demand is

Dreal variables are

Correct answer

C. aggregate demand is

Explanation

The correct answer is aggregate demand is.

3672EconomicsMedium

If the economy is at the peak of the business cycle, aggregate demand unemployment inflation and the current account of the balance of payments is likely to move towards ____?

Ais static; low; rises; deficit

Bfalls; falls; falls; surplus

Crise; falls; rise; deficit

Dfalls; rises; falls; surplus

Correct answer

A. is static; low; rises; deficit

Explanation

The correct answer is is static; low; rises; deficit.

3673EconomicsMedium

Which crops are sown in Rabi Season?

Acotton

Bred gram

CWheat

Dblack gram

Correct answer

A. cotton

Explanation

The correct answer is cotton.

3674EconomicsMedium

When an international seller sells a plant equipment or technology to another country and agrees to take payment in the resulting products, it is called?

Alike-value-exchange

Bbarter

Cbuy-back

Dcounterpurchase

Correct answer

C. buy-back

Explanation

The correct answer is buy-back.

3675EconomicsMedium

Import quotas tend to result in all of the following except?

APrices increasing in the importing country

BPrices falling in the exporting country

Cdomestic consumers of the imported good being harmed

Ddomestic producers of the imported good being harmed

Correct answer

D. domestic producers of the imported good being harmed

Explanation

The correct answer is domestic producers of the imported good being harmed.

3676EconomicsMedium

Share prices will follow a random walk if?

Amarkets reflect all available information in a rational way

Bpeople behave irrationally when choosing shares

Cshares are undervalued

Dshares are overvalued

Correct answer

A. markets reflect all available information in a rational way

Explanation

The correct answer is markets reflect all available information in a rational way.

3677EconomicsMedium

Total planned OR desired spending in the economy as a whole within a given period is called________?

Aelastic demand

Bpent-up demand

Caggregate demand

Dexcess demand

Correct answer

C. aggregate demand

Explanation

The correct answer is aggregate demand.

3678EconomicsMedium

In the short run, the competitive firm’s supply curve is the portion of the marginal cost curve that lies above the average variable cost curve?

Aentire marginal cost curve.

Bupward-sloping portion of the average variable cost curve

CUpward-sloping portion of the average total cost curve

Dportion of the marginal-cost curve that lies above the average variable cost curve

Eportion of the marginal cost curve that lies above the average total cost curve.

Correct answer

D. portion of the marginal-cost curve that lies above the average variable cost curve

Explanation

The correct answer is portion of the marginal-cost curve that lies above the average variable cost curve.

3679EconomicsMedium

The national security argument for protection is more likely to be valid when?

AThe economy operates during a recession

BThe industry is characterized by increasing returns to scale

CThe protected industry provides invaluable goods during periods of war

DThe purpose is to maintain protection for an indefinite time period

Correct answer

C. The protected industry provides invaluable goods during periods of war

Explanation

The correct answer is The protected industry provides invaluable goods during periods of war.

3680EconomicsMedium

The biggest of greatest amount of involvement in a foreign market comes through which of the following?

ADirect investment

BJoint venturing

CLicensing

DExporting

Correct answer

A. Direct investment

Explanation

The correct answer is Direct investment.

Import quotas tend to result in all of the following except?

APrices increasing in the importing country

BPrices falling in the exporting country

Cdomestic consumers of the imported good being harmed

Ddomestic producers of the imported good being harmed

Correct answer

D. domestic producers of the imported good being harmed

Explanation

The correct answer is domestic producers of the imported good being harmed.

Share prices will follow a random walk if?

Amarkets reflect all available information in a rational way

Bpeople behave irrationally when choosing shares

Cshares are undervalued

Dshares are overvalued

Correct answer

A. markets reflect all available information in a rational way

Explanation

The correct answer is markets reflect all available information in a rational way.

In the short run, the competitive firm’s supply curve is the portion of the marginal cost curve that lies above the average variable cost curve?

Aentire marginal cost curve.

Bupward-sloping portion of the average variable cost curve

CUpward-sloping portion of the average total cost curve

Dportion of the marginal-cost curve that lies above the average variable cost curve

Eportion of the marginal cost curve that lies above the average total cost curve.

Correct answer

D. portion of the marginal-cost curve that lies above the average variable cost curve

Explanation

The correct answer is portion of the marginal-cost curve that lies above the average variable cost curve.

The national security argument for protection is more likely to be valid when?

AThe economy operates during a recession

BThe industry is characterized by increasing returns to scale

CThe protected industry provides invaluable goods during periods of war

DThe purpose is to maintain protection for an indefinite time period

Correct answer

C. The protected industry provides invaluable goods during periods of war

Explanation

The correct answer is The protected industry provides invaluable goods during periods of war.

Economics MCQs with Explanations

Real business cycle theory suggests that ____ not important in explaining short-term fluctuations around actual output?

If the economy is at the peak of the business cycle, aggregate demand ____ unemployment ________ inflation ________ and the current account of the balance of payments is likely to move towards ________?

Which crops are sown in Rabi Season?

When an international seller sells a plant equipment or technology to another country and agrees to take payment in the resulting products, it is called?

Import quotas tend to result in all of the following except?

Share prices will follow a random walk if?

Total planned OR desired spending in the economy as a whole within a given period is called________?

In the short run, the competitive firm’s supply curve is the portion of the marginal cost curve that lies above the average variable cost curve?

The national security argument for protection is more likely to be valid when?

The biggest of greatest amount of involvement in a foreign market comes through which of the following?

Economics MCQs with Explanations

Real business cycle theory suggests that ____ not important in explaining short-term fluctuations around actual output?

If the economy is at the peak of the business cycle, aggregate demand ____ unemployment ________ inflation ________ and the current account of the balance of payments is likely to move towards ________?

Which crops are sown in Rabi Season?

When an international seller sells a plant equipment or technology to another country and agrees to take payment in the resulting products, it is called?

Import quotas tend to result in all of the following except?

Share prices will follow a random walk if?

Total planned OR desired spending in the economy as a whole within a given period is called________?

In the short run, the competitive firm’s supply curve is the portion of the marginal cost curve that lies above the average variable cost curve?

The national security argument for protection is more likely to be valid when?

The biggest of greatest amount of involvement in a foreign market comes through which of the following?

If the economy is at the peak of the business cycle, aggregate demand unemployment inflation and the current account of the balance of payments is likely to move towards ____?

If the economy is at the peak of the business cycle, aggregate demand unemployment inflation and the current account of the balance of payments is likely to move towards ____?