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Economics MCQs with Explanations

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601EconomicsMedium

A production subsidy that is granted to a producer of an import-competing good?

Ayields the same deadweight welfare loss as an import tariff or import quota

Bhas only a protective effect deadweight loss

Chas only a consumption effect deadweight loss

Ddoes not require government taxes to finance it

Correct answer

B. has only a protective effect deadweight loss

Explanation

The correct answer is has only a protective effect deadweight loss.

602EconomicsMedium

Which of the following is referred by the Debt retirement?

ATo reschedule debt

BTo write-off debt

CThe complete repayment of debt

DTo repay debt in easy installments

Correct answer

C. The complete repayment of debt

Explanation

The correct answer is The complete repayment of debt.

603EconomicsMedium

One third of the nation’s energy need is fulfilled by?

Agas

Boil

CLPG

Dforest sector

Correct answer

D. forest sector

Explanation

The correct answer is forest sector.

604EconomicsMedium

The jobs of the future will include________?

AAll but A

Bsteel workers

Cpersonal services

Droutine services

Correct answer

A. All but A

Explanation

The correct answer is All but A.

605EconomicsMedium

Terrorist groups differ from liberation organizations in that________?

Atheir leaders are well known

Bthey do not organize the masses on a large scale

Conly terrorists take credit for bombing museums

Dthey tend to hide in rural areas

Correct answer

B. they do not organize the masses on a large scale

Explanation

The correct answer is they do not organize the masses on a large scale.

606EconomicsMedium

With the tariff, the quantity of imports falls to?

A42,000 units

B12,000 units

C20,000 units

D30,000 units

Correct answer

C. 20,000 units

Explanation

The correct answer is 20,000 units.

607EconomicsMedium

One of the perceived advantages of suburban living is________?

Aconcentration of apartments

Blarger variety of cultural resources

Cgreater safety from crime

Dolder more gracious housing

Correct answer

C. greater safety from crime

Explanation

The correct answer is greater safety from crime.

608EconomicsMedium

The real income of domestic producers and consumers can be increased by?

AInternational trade but not technological progress

BNeither technological progress nor international trade

CTechnological progress, but not international trade

DTechnological Progress and international trade

Correct answer

D. Technological Progress and international trade

Explanation

The correct answer is Technological Progress and international trade.

609EconomicsMedium

The opportunity cost of a good is________?

Athe loss of interest in using savings

Bthe expenditure on the good

Cthe time lost in finding it

Dthe quantity of other goods sacrificed to get another unit of that good

Correct answer

D. the quantity of other goods sacrificed to get another unit of that good

Explanation

The correct answer is the quantity of other goods sacrificed to get another unit of that good.

610EconomicsMedium

Following World War II the United States and other countries sought to liberalize trade among each other the first major postwar step toward trade liberalization was the?

AMcKinley Agreement on Trade policy

BWorld Trade Organization

CGeneral Agreement on Tariffs and Trade

DSmoot Hawley Organization

Correct answer

C. General Agreement on Tariffs and Trade

Explanation

The correct answer is General Agreement on Tariffs and Trade.

A production subsidy that is granted to a producer of an import-competing good?

Ayields the same deadweight welfare loss as an import tariff or import quota

Bhas only a protective effect deadweight loss

Chas only a consumption effect deadweight loss

Ddoes not require government taxes to finance it

Correct answer

B. has only a protective effect deadweight loss

Explanation

The correct answer is has only a protective effect deadweight loss.

Terrorist groups differ from liberation organizations in that________?

Atheir leaders are well known

Bthey do not organize the masses on a large scale

Conly terrorists take credit for bombing museums

Dthey tend to hide in rural areas

Correct answer

B. they do not organize the masses on a large scale

Explanation

The correct answer is they do not organize the masses on a large scale.

The real income of domestic producers and consumers can be increased by?

AInternational trade but not technological progress

BNeither technological progress nor international trade

CTechnological progress, but not international trade

DTechnological Progress and international trade

Correct answer

D. Technological Progress and international trade

Explanation

The correct answer is Technological Progress and international trade.

The opportunity cost of a good is________?

Athe loss of interest in using savings

Bthe expenditure on the good

Cthe time lost in finding it

Dthe quantity of other goods sacrificed to get another unit of that good

Correct answer

D. the quantity of other goods sacrificed to get another unit of that good

Explanation

The correct answer is the quantity of other goods sacrificed to get another unit of that good.