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Economics MCQs with Explanations

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51EconomicsMedium

In the long run, expanding educational and training facilities, transportation and communication and other infrastructure in LDCs should increase?

Athe residual

Bproductivity paradox

Cabsorptive capacity

Duncertainly

Correct answer

C. absorptive capacity

Explanation

The correct answer is absorptive capacity.

52EconomicsMedium

Which of the following is true?

AStudents with low levels of self-esteem and low levels of confidence tend to do poorly in school

BStudents are seldom able to evaluate their own abilities

CTesting consistently low does not affect a students self-confidence

DLower-class students do as well academically as those from higher social classes

Correct answer

C. Testing consistently low does not affect a students self-confidence

Explanation

The correct answer is Testing consistently low does not affect a students self-confidence.

53EconomicsMedium

Birthrates________?

Aare low BOTH in Western Europe and Japan and high in Arabia and Africa

Bare low in Western Europe and Japan

Care high in Arabia and interior African

Dgenerally correspond to population density

Correct answer

A. are low BOTH in Western Europe and Japan and high in Arabia and Africa

Explanation

The correct answer is are low BOTH in Western Europe and Japan and high in Arabia and Africa.

54EconomicsMedium

The Heckscher-Ohl in model rules out the classical model’s basis for trade by assuming that ________ is (are) identical between countries?

Atechnology

Bfactor intensities

Copportunity costs

Dfactor endowments

Correct answer

A. technology

Explanation

The correct answer is technology.

55EconomicsMedium

Suppose that tomatoes from Mexico face a 20 percent tariff in the United States and a 25 percent tariff in Canada. If the United States and Canada maintain free trade between each other, the these two countries belong to a?

Afree-trade area

Bcommon market

Ccustoms union

Dmonetary union

Correct answer

A. free-trade area

Explanation

The correct answer is free-trade area.

56EconomicsMedium

A competitive equilibrium is Pareto-efficient because?

AAll of the above

BProducers are price takers

Cconsumers and producers face the same prices

Dprices equal marginal cost and benefit

Emarginal costs and benefits are equal

Correct answer

A. All of the above

Explanation

The correct answer is All of the above.

57EconomicsMedium

Aggregate demand without a foreign sector is the sum of?

AC + 1 + G

BC + 1

CC + G

DI + G

Correct answer

A. C + 1 + G

Explanation

The correct answer is C + 1 + G.

58EconomicsMedium

In an economy measuring (1) total value added (2)total spending on final goods and (3)total factor earning gives the result that?

Aany measure can be larger or smaller than any other

B3>2>1

Correct answer

B. 3>2>1

Explanation

The correct answer is 3>2>1.

59EconomicsMedium

A company or corporation which was subsidiaries, investments or operation in more than one country is known as?

AMultinational corporation

BBoth of them

CMultinational company

DNone of them

Correct answer

B. Both of them

Explanation

The correct answer is Both of them.

60EconomicsMedium

Religious beliefs are often contained in________?

Aall of the above

Bcreeds

Cdoctrines

Darticles of faith

Correct answer

A. all of the above

Explanation

The correct answer is all of the above.

Which of the following is true?

AStudents with low levels of self-esteem and low levels of confidence tend to do poorly in school

BStudents are seldom able to evaluate their own abilities

CTesting consistently low does not affect a students self-confidence

DLower-class students do as well academically as those from higher social classes

Correct answer

C. Testing consistently low does not affect a students self-confidence

Explanation

The correct answer is Testing consistently low does not affect a students self-confidence.

Birthrates________?

Aare low BOTH in Western Europe and Japan and high in Arabia and Africa

Bare low in Western Europe and Japan

Care high in Arabia and interior African

Dgenerally correspond to population density

Correct answer

A. are low BOTH in Western Europe and Japan and high in Arabia and Africa

Explanation

The correct answer is are low BOTH in Western Europe and Japan and high in Arabia and Africa.