MCQs

Economics MCQs with Explanations

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561EconomicsMedium

If an increase in the price of a good has no impact on the total revenue in that market demand must be?

Aprice elastic

Bprice inelastic

Call of these answers

Dunit price elastic

Correct answer

D. unit price elastic

Explanation

The correct answer is unit price elastic.

562EconomicsMedium

If your company were to make a product such as a suit of clothes and sold that product to a retailer your company would have sold to the ________ merket?

Agovernment

Bbusiness

Creseller

Dservice

Correct answer

C. reseller

Explanation

The correct answer is reseller.

563EconomicsMedium

Economic models are?

Acreated to duplicate reality.

Bbuilt with assumptions.

Cuseless if they are simple.

DUsually made of wood and plastic

Correct answer

B. built with assumptions.

Explanation

The correct answer is built with assumptions..

564EconomicsMedium

A negative externality (that has not been internalized) causes the?

Aoptimal quantity to exceed the equilibrium quantity.

Bequilibrium quantity to equal the optimal quantity

Cequilibrium quantity to be either above or below the optimal quantity

Dequilibrium quantity to exceed the optimal quantity

Correct answer

D. equilibrium quantity to exceed the optimal quantity

Explanation

The correct answer is equilibrium quantity to exceed the optimal quantity.

565EconomicsMedium

Term the body of goods and monies from which future income can be derived?

ANet assets

BHoldings

CSolid asset

DCapital

Correct answer

D. Capital

Explanation

The correct answer is Capital.

566EconomicsMedium

Statement A: The might of a country consists of gaining surpluses of gold and silver Statement B: A nation’s strength is found in economic independence and the maintenance of a favorable balance of trade Statement C: We need to gain colonies both as sources for raw materials and as markets for our manufactured of goods Which economic system is being described by these statements?

Atraditional

Bmercantile

Ccommand

Dfeudal

Correct answer

B. mercantile

Explanation

The correct answer is mercantile.

567EconomicsMedium

Which of the following is true under pairwise majority rule if people vote for the outcome closest to their most preferred outcome?

AThere is no clear winner due to Arrow’s Impossibility Theorem.

BThe outcome preferred by the median voter wins

CThe average preferred outcome wins

DThe outcome preferred by the greatest number of voters wins.

Correct answer

B. The outcome preferred by the median voter wins

Explanation

The correct answer is The outcome preferred by the median voter wins.

568EconomicsMedium

If Pakistani citizens become more thrifty we would expect?

AThe demand for loanable funds in the Pakistan loanable funds market to shift to the right and the real interest rate to rise

BThe supply of loandable funds in the Pakistan loanable funds market to shift to the right and the real interest rate to rise

CThe supply of loanable funds in the Pakistan loanable funds market to shift to the right and the real interest rate to fall.

DThe demand for loandable funds in the Pakistan loanable funds market to shift to the right and the real interest rate to fall

Correct answer

C. The supply of loanable funds in the Pakistan loanable funds market to shift to the right and the real interest rate to fall.

Explanation

The correct answer is The supply of loanable funds in the Pakistan loanable funds market to shift to the right and the real interest rate to fall..

569EconomicsMedium

If the economy is in the expansionary phase of the business cycle, aggregate demand unemployment inflation payments is likely to move towards ?

Afalls; falls; falls; surplus

Bis static; low; rise; deficit;

Cfalls; rise; falls; surplus

Drise; falls; rises; deficit

Correct answer

D. rise; falls; rises; deficit

Explanation

The correct answer is rise; falls; rises; deficit.

570EconomicsMedium

The “significant others” of Mead,s theory are________?

Aconstituted by governmental authorities who must be obeyed

Bsimilar to the ego of Freud,s theory

Cunimportant because models do not influence personality

Dimportant because they provide the initial role models

Correct answer

D. important because they provide the initial role models

Explanation

The correct answer is important because they provide the initial role models.

A negative externality (that has not been internalized) causes the?

Aoptimal quantity to exceed the equilibrium quantity.

Bequilibrium quantity to equal the optimal quantity

Cequilibrium quantity to be either above or below the optimal quantity

Dequilibrium quantity to exceed the optimal quantity

Correct answer

D. equilibrium quantity to exceed the optimal quantity

Explanation

The correct answer is equilibrium quantity to exceed the optimal quantity.

Which of the following is true under pairwise majority rule if people vote for the outcome closest to their most preferred outcome?

AThere is no clear winner due to Arrow’s Impossibility Theorem.

BThe outcome preferred by the median voter wins

CThe average preferred outcome wins

DThe outcome preferred by the greatest number of voters wins.

Correct answer

B. The outcome preferred by the median voter wins

Explanation

The correct answer is The outcome preferred by the median voter wins.

If Pakistani citizens become more thrifty we would expect?

AThe demand for loanable funds in the Pakistan loanable funds market to shift to the right and the real interest rate to rise

BThe supply of loandable funds in the Pakistan loanable funds market to shift to the right and the real interest rate to rise

CThe supply of loanable funds in the Pakistan loanable funds market to shift to the right and the real interest rate to fall.

DThe demand for loandable funds in the Pakistan loanable funds market to shift to the right and the real interest rate to fall

Correct answer

C. The supply of loanable funds in the Pakistan loanable funds market to shift to the right and the real interest rate to fall.

Explanation

The correct answer is The supply of loanable funds in the Pakistan loanable funds market to shift to the right and the real interest rate to fall..

The “significant others” of Mead,s theory are________?

Aconstituted by governmental authorities who must be obeyed

Bsimilar to the ego of Freud,s theory

Cunimportant because models do not influence personality

Dimportant because they provide the initial role models

Correct answer

D. important because they provide the initial role models

Explanation

The correct answer is important because they provide the initial role models.

Economics MCQs with Explanations

If an increase in the price of a good has no impact on the total revenue in that market demand must be?

If your company were to make a product such as a suit of clothes and sold that product to a retailer your company would have sold to the ________ merket?

Economic models are?

A negative externality (that has not been internalized) causes the?

Term the body of goods and monies from which future income can be derived?

Which of the following is true under pairwise majority rule if people vote for the outcome closest to their most preferred outcome?

If Pakistani citizens become more thrifty we would expect?

If the economy is in the expansionary phase of the business cycle, aggregate demand ____ unemployment ____ inflation ____ payments is likely to move towards ____?

The “significant others” of Mead,s theory are________?

Economics MCQs with Explanations

If an increase in the price of a good has no impact on the total revenue in that market demand must be?

If your company were to make a product such as a suit of clothes and sold that product to a retailer your company would have sold to the ________ merket?

Economic models are?

A negative externality (that has not been internalized) causes the?

Term the body of goods and monies from which future income can be derived?

Which of the following is true under pairwise majority rule if people vote for the outcome closest to their most preferred outcome?

If Pakistani citizens become more thrifty we would expect?

If the economy is in the expansionary phase of the business cycle, aggregate demand ____ unemployment ____ inflation ____ payments is likely to move towards ____?

The “significant others” of Mead,s theory are________?

If the economy is in the expansionary phase of the business cycle, aggregate demand unemployment inflation payments is likely to move towards ?

If the economy is in the expansionary phase of the business cycle, aggregate demand unemployment inflation payments is likely to move towards ?