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Economics MCQs with Explanations

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661EconomicsMedium

If a nation’s interest rates are relatively low compared to those of other countries then the exchange value of its currency will tend to?

Adepreciate under a system of fixed exchange rates

Bappreciate under a system of floating fixed rates

Cdepreciate under a system of floating exchange rates

Dappreciate under a system of floating exchange rates

Correct answer

C. depreciate under a system of floating exchange rates

Explanation

The correct answer is depreciate under a system of floating exchange rates.

662EconomicsMedium

Which of the following groups suffer the most from inflation?

ABusiness class

BDebtors

CNone of these

DCreditors

Correct answer

D. Creditors

Explanation

The correct answer is Creditors.

663EconomicsMedium

The first modern environmental movement in the United States began in the?

Amid-1980s

B1960s and 1970s

C1940s

D1950s

Correct answer

B. 1960s and 1970s

Explanation

The correct answer is 1960s and 1970s.

664EconomicsMedium

Which is the largest continent (population wise) of the world?

AAmerica

BEurope

CAustralia

DAsia

Correct answer

D. Asia

Explanation

The correct answer is Asia.

665EconomicsMedium

An increase in the price of a good along a stationary supply curve________?

Aimproves market equity

Bdoes all the things describe in these answers

Cdecrease producer surplus

Dincrease producer surplus

Correct answer

D. increase producer surplus

Explanation

The correct answer is increase producer surplus.

666EconomicsMedium

Which of the following is regarded as a factor of production?

AInterest

BNone of these

CProfit

DCapital

Correct answer

D. Capital

Explanation

The correct answer is Capital.

667EconomicsMedium

International specialization takes place because of________?

Ascale economies

Bdifferences in factor endowments

CAll of the above

Ddifferences in technology

Correct answer

C. All of the above

Explanation

The correct answer is All of the above.

668EconomicsMedium

The formula for average fixed costs is?

ATFC – q

Bq/TFC

CDq/DTFC

Correct answer

A. TFC – q

Explanation

The correct answer is TFC – q.

669EconomicsMedium

What is called the acquisition abroad of physical assets with operating control that resides in parent corporation?

AForeign Direct Investment (FDI)

BFixed Direct Investment

CForeign Investment

DRemote Foreign Investment

Correct answer

A. Foreign Direct Investment (FDI)

Explanation

The correct answer is Foreign Direct Investment (FDI).

670EconomicsMedium

Which of the following would decease aggregate demand?

Aincreased investment

Bincrease consumption

Cincreasing export revenue

Dincreased taxation revenue

Correct answer

C. increasing export revenue

Explanation

The correct answer is increasing export revenue.

If a nation’s interest rates are relatively low compared to those of other countries then the exchange value of its currency will tend to?

Adepreciate under a system of fixed exchange rates

Bappreciate under a system of floating fixed rates

Cdepreciate under a system of floating exchange rates

Dappreciate under a system of floating exchange rates

Correct answer

C. depreciate under a system of floating exchange rates

Explanation

The correct answer is depreciate under a system of floating exchange rates.