MCQs

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.

81%

3,680 of 4,520MCQs reviewed

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

3681EconomicsMedium

Firms in perfect competition face a?

Aperfectly elastic demand curve

Bperfectly inelastic supply curve

Cperfectly inelastic demand curve

Dperfectly elastic supply curve

Correct answer

A. perfectly elastic demand curve

Explanation

The correct answer is perfectly elastic demand curve.

3682EconomicsMedium

The essential difference between capitalism and socialism is that?

Acapitalism relies on consumer satisfaction to dictate choices and socialism relies on producer satisfaction

Bcapitalism exploits the worker and socialism exploits the property owner

Ccapitalism relies on the market to make economic decisions and socialism uses central planning

Dcapitalism grows through rent seeking and socialism grows through government direction

Correct answer

C. capitalism relies on the market to make economic decisions and socialism uses central planning

Explanation

The correct answer is capitalism relies on the market to make economic decisions and socialism uses central planning.

3683EconomicsMedium

Effective branding will tend to make?

ASupply more income elastic

BDemand more price inelastic

CSupply more price inelastic

DDemand more income elastic

Correct answer

A. Supply more income elastic

Explanation

The correct answer is Supply more income elastic.

3684EconomicsMedium

Along a short-run Phillips curve,?

Aa higher rate of growth in output is associated with a lower unemployment rate

Ba higher rate of inflation is associated with a lower unemployment rate

Ca higher rate of growth in output is associated with a higher unemployment rate.

Da higher rate of inflation is associated with a higher unemployment rate

Correct answer

B. a higher rate of inflation is associated with a lower unemployment rate

Explanation

The correct answer is a higher rate of inflation is associated with a lower unemployment rate.

3685EconomicsMedium

ideologies may be________?

Aall of the above

Babstract

Ccomprehensive

Dpartial

Correct answer

A. all of the above

Explanation

The correct answer is all of the above.

3686EconomicsMedium

A deflationary policy could include?

AReducing taxation rates

BReducing government spending

Cincreasing injections

DReducing interest rates

Correct answer

D. Reducing interest rates

Explanation

The correct answer is Reducing interest rates.

3687EconomicsMedium

Which of the following is not considered a transaction cost incurred by parties in the process of contracting to eliminate a pollution externality?

AAll of these answers are considered transaction costs

Bcosts incurred to enforce the agreement

Ccosts incurred due to lawyers’ fees

Dcosts incurred due to a large number of parties affected by the externality

Ecosts incurred to reduce the pollution

Correct answer

E. costs incurred to reduce the pollution

Explanation

The correct answer is costs incurred to reduce the pollution.

3688EconomicsMedium

Urban renewal has________?

Asecured many jobs for the poor

Bprovided good housing for the poor

Celiminated housing discrimination

Dmoved residents but not improved conditions

Correct answer

D. moved residents but not improved conditions

Explanation

The correct answer is moved residents but not improved conditions.

3689EconomicsMedium

The Cuban community in Miami is an example of________?

Aacculturation

Baccommodation

Csegregation

Dassimilation

Correct answer

B. accommodation

Explanation

The correct answer is accommodation.

3690EconomicsMedium

Portion of a company’s profit paid to common and preferred shareholders is called?

ADividend

BGross Profit

CRight share

DProfit share

Correct answer

A. Dividend

Explanation

The correct answer is Dividend.

The essential difference between capitalism and socialism is that?

Acapitalism relies on consumer satisfaction to dictate choices and socialism relies on producer satisfaction

Bcapitalism exploits the worker and socialism exploits the property owner

Ccapitalism relies on the market to make economic decisions and socialism uses central planning

Dcapitalism grows through rent seeking and socialism grows through government direction

Correct answer

C. capitalism relies on the market to make economic decisions and socialism uses central planning

Explanation

The correct answer is capitalism relies on the market to make economic decisions and socialism uses central planning.

Along a short-run Phillips curve,?

Aa higher rate of growth in output is associated with a lower unemployment rate

Ba higher rate of inflation is associated with a lower unemployment rate

Ca higher rate of growth in output is associated with a higher unemployment rate.

Da higher rate of inflation is associated with a higher unemployment rate

Correct answer

B. a higher rate of inflation is associated with a lower unemployment rate

Explanation

The correct answer is a higher rate of inflation is associated with a lower unemployment rate.

Which of the following is not considered a transaction cost incurred by parties in the process of contracting to eliminate a pollution externality?

AAll of these answers are considered transaction costs

Bcosts incurred to enforce the agreement

Ccosts incurred due to lawyers’ fees

Dcosts incurred due to a large number of parties affected by the externality

Ecosts incurred to reduce the pollution

Correct answer

E. costs incurred to reduce the pollution

Explanation

The correct answer is costs incurred to reduce the pollution.