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Economics MCQs with Explanations

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3691EconomicsMedium

________ have contractual authority to sell a manufacturer’s entire output?

AManufacturer’s agents

BSelling agents

CPurchasing agents

DRack jobbers

Correct answer

B. Selling agents

Explanation

The correct answer is Selling agents.

3692EconomicsMedium

If the Bank of England reduces the money supply to reduce inflation a floating exchange rate will aid the Bank of England in fighting inflation because?

Aas the money supply is decreased the interest rate will increase and the price of both UK exports and UK imports will rise

Bas the money supply is decreased the interest rate will increase, and the price of UK exports will fall and the price of UK imports will rise

Cas the money supply is decreased the interest rate will increase and the price of UK exports and UK imports will fall.

Das the money supply is decreased the interest rate will increase and the price of UK exports will rise and the Price of UK imports will fall

Correct answer

C. as the money supply is decreased the interest rate will increase and the price of UK exports and UK imports will fall.

Explanation

The correct answer is as the money supply is decreased the interest rate will increase and the price of UK exports and UK imports will fall..

3693EconomicsMedium

If a company (considering its options on the product/market expansion grid) chooses to move into different unrelated fields (from what it ha ever done before) with new products as a means to stimulate growth the company would be following which of the following general strategies?

Amarket development

Bproduct development

Cdiversification

Dmarket penetrations

Correct answer

C. diversification

Explanation

The correct answer is diversification.

3694EconomicsMedium

Income distribution according to productive contribution is________?

Aa tenet of communism

Befficient but inequitable

Cinefficient but equitable

Defficient and equitable

Correct answer

B. efficient but inequitable

Explanation

The correct answer is efficient but inequitable.

3695EconomicsMedium

American foreign aid after World War II________?

Aall of the above

Bhelped the domestic economies of industrial nations

Cboosted international trade

Dprevented revolutionary movements from starting in a number of nations

Correct answer

C. boosted international trade

Explanation

The correct answer is boosted international trade.

3696EconomicsMedium

The principle of the separation of powers________?

Ais prescribed by the Constitution

Bprovides for an absolute separation of three branches of government

Cwas imitated by the framers of the constitution from Roman forms of government

Dwas a notion the framers had to abandon

Correct answer

A. is prescribed by the Constitution

Explanation

The correct answer is is prescribed by the Constitution.

3697EconomicsMedium

Public policy according to elitists tends to reflect________?

Athe values of the elites

Bthe ideals of the society

Cthe compromises necessary to temper ideals with reality

Dthe demands of the masses

Correct answer

A. the values of the elites

Explanation

The correct answer is the values of the elites.

3698EconomicsMedium

Which status is in transition and difficult to classify in corporate relationships?

AForeman

BUnion official

CCEO

DStock holder

Correct answer

A. Foreman

Explanation

The correct answer is Foreman.

3699EconomicsMedium

The price system is based on________?

Aconsumer demand

Btradition

Cthe command of a ruler

Da government plan

Correct answer

A. consumer demand

Explanation

The correct answer is consumer demand.

3700EconomicsMedium

In some cultures a women a can have several husbands at one time. This custom is called________?

Apolygyny

Blunacy

Cpolyandry

Dserial marriage

Correct answer

A. polygyny

Explanation

The correct answer is polygyny.

If the Bank of England reduces the money supply to reduce inflation a floating exchange rate will aid the Bank of England in fighting inflation because?

Aas the money supply is decreased the interest rate will increase and the price of both UK exports and UK imports will rise

Bas the money supply is decreased the interest rate will increase, and the price of UK exports will fall and the price of UK imports will rise

Cas the money supply is decreased the interest rate will increase and the price of UK exports and UK imports will fall.

Das the money supply is decreased the interest rate will increase and the price of UK exports will rise and the Price of UK imports will fall

Correct answer

C. as the money supply is decreased the interest rate will increase and the price of UK exports and UK imports will fall.

Explanation

The correct answer is as the money supply is decreased the interest rate will increase and the price of UK exports and UK imports will fall..

The principle of the separation of powers________?

Ais prescribed by the Constitution

Bprovides for an absolute separation of three branches of government

Cwas imitated by the framers of the constitution from Roman forms of government

Dwas a notion the framers had to abandon

Correct answer

A. is prescribed by the Constitution

Explanation

The correct answer is is prescribed by the Constitution.