Economics MCQs with explanations

Question 1

In contestable markets large oligopolistic firms end up behaving like?

Accepted Answer

monopolistically competitive firms

Question 2

Riskless transactions to take advantage of profit opportunities due to a price differential or a yield differential in excess of transaction costs are called?

Accepted Answer

arbitrage

Question 3

What is called the reduction in the rate of a currency

Accepted Answer

Devaluation

Question 4

The 1993 World Bank study entitled The East Asian Miracle (1993) identifies eight high performing Asian economies Which of the following is not one of them?

Accepted Answer

Vietnam

Question 5

TO reduce cyclical unemployment the government might?

Accepted Answer

Reduce government expenditure

Question 6

Economic growth can be seen by an outward shift of?

Accepted Answer

The Minimum Efficient Scale

Question 7

Pricing to cover variable costs and some fixed costs as in the case of some automobile distributorships that sell below total costs is typical of which of the following pricing objectives?

Accepted Answer

Survival

Question 8

Supervising and investigating the manner in which the legislative bureaucracy carries out and implements the laws Congress passes is a function called________?

Accepted Answer

oversight

Question 9

Which of the following describes an increase in technological knowledge?

Accepted Answer

A farmer discovers that it is better to plant in the spring rather than in the fall

Question 10

Which of the following is not a quasi-public good?

Accepted Answer

an automobile

Economics MCQs with Explanations