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Economics MCQs with Explanations

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951EconomicsMedium

A profit-maximizing firm will hire labour until equals the ?

Amarginal cost of labor, marginal revenue product

Blabor output ratio, capital output ratio

Cmarginal revenue, marginal cost

Dlong run marginal revenue, long run marginal cost

Correct answer

A. marginal cost of labor, marginal revenue product

Explanation

The correct answer is marginal cost of labor, marginal revenue product.

952EconomicsMedium

Which of the following types of coal represents the first stage of formation of coal?

APeat

BLignite

CAnthracite

DBituminous

Correct answer

A. Peat

Explanation

The correct answer is Peat.

953EconomicsMedium

Automatic stabilisers act to government expenditures and government revenues during recessions?

Adecrease; increase

Bincrease: increase

Cincrease; decrease

Ddecrease; decrease

Correct answer

C. increase; decrease

Explanation

The correct answer is increase; decrease.

954EconomicsMedium

A reasonable measure of the standard of living in a country is?

AReal GDP

BThe growth rate of nominal GDP per person

Creal GDP per person

Dnominal GDP per person.

Correct answer

C. real GDP per person

Explanation

The correct answer is real GDP per person.

955EconomicsMedium

The unemployment rate is the?

Aunemployed divided by employed

Blabor force divided by population

Ctotal employment divided by population

Demployed plus unemployed divided by labor force

Correct answer

D. employed plus unemployed divided by labor force

Explanation

The correct answer is employed plus unemployed divided by labor force.

956EconomicsMedium

The natural rate of unemployment is generally thought of as the?

ASum of structural unemployment and cyclical unemployment.

BSum of frictional unemployment and cyclical unemployment

Cratio of the frictional unemployment rate to the cyclical unemployment rate.

Dsum of frictional unemployment and structural unemployment.

Correct answer

D. sum of frictional unemployment and structural unemployment.

Explanation

The correct answer is sum of frictional unemployment and structural unemployment..

957EconomicsMedium

Term a tax that is levied by a country of source on income paid, usually on dividends remitted to the home country of the firm operating in a foreign country?

AIncome tax

BNone of these

CWithholding tax

DWealth tax

Correct answer

C. Withholding tax

Explanation

The correct answer is Withholding tax.

958EconomicsMedium

international dumping may involve?

AAll of the above

Bantidumping duties being levied on the imported, dumped goods

Cselling goods to foreigners at a price below the cost of production

Dselling goods to foreigners at a price below that charged domestic consumers

Correct answer

A. All of the above

Explanation

The correct answer is All of the above.

959EconomicsMedium

To reduce imports, suppose that the government of Norway’s imposes a quota equal to 800 computers, Compared to what occurred under free trade, Norway’s consumers surplus will and its producer surplus will Can you calculate these amounts? Try plotting the information of this table on a sheet of graph paper?

Aincrease, increase

Bdecrease, increase

Cdecrease, decrease

Dincrease, decrease

Correct answer

B. decrease, increase

Explanation

The correct answer is decrease, increase.

960EconomicsMedium

Suppose you find Rs 20. If you choose to use the Rs 20 to go to a football match your opportunity cost of going to the game is?

ARs 20 (because you could have used the Rs 20 to buy other things) plus the value of your time spent at the game plus the cost of the dinner you purchased at the game.

BRs20 (because you could have used the Rs20 to buy other ghings)

Cnothing because you found the money.

DRs20 (because you found the money Rs 20 to buy other things) plus the value of your time spent at the game.

ENone of these

Correct answer

D. Rs20 (because you found the money Rs 20 to buy other things) plus the value of your time spent at the game.

Explanation

The correct answer is Rs20 (because you found the money Rs 20 to buy other things) plus the value of your time spent at the game..

A profit-maximizing firm will hire labour until ________ equals the ________?

Amarginal cost of labor, marginal revenue product

Blabor output ratio, capital output ratio

Cmarginal revenue, marginal cost

Dlong run marginal revenue, long run marginal cost

Correct answer

A. marginal cost of labor, marginal revenue product

Explanation

The correct answer is marginal cost of labor, marginal revenue product.

The natural rate of unemployment is generally thought of as the?

ASum of structural unemployment and cyclical unemployment.

BSum of frictional unemployment and cyclical unemployment

Cratio of the frictional unemployment rate to the cyclical unemployment rate.

Dsum of frictional unemployment and structural unemployment.

Correct answer

D. sum of frictional unemployment and structural unemployment.

Explanation

The correct answer is sum of frictional unemployment and structural unemployment..

international dumping may involve?

AAll of the above

Bantidumping duties being levied on the imported, dumped goods

Cselling goods to foreigners at a price below the cost of production

Dselling goods to foreigners at a price below that charged domestic consumers

Correct answer

A. All of the above

Explanation

The correct answer is All of the above.

Suppose you find Rs 20. If you choose to use the Rs 20 to go to a football match your opportunity cost of going to the game is?

ARs 20 (because you could have used the Rs 20 to buy other things) plus the value of your time spent at the game plus the cost of the dinner you purchased at the game.

BRs20 (because you could have used the Rs20 to buy other ghings)

Cnothing because you found the money.

DRs20 (because you found the money Rs 20 to buy other things) plus the value of your time spent at the game.

ENone of these

Correct answer

D. Rs20 (because you found the money Rs 20 to buy other things) plus the value of your time spent at the game.

Explanation

The correct answer is Rs20 (because you found the money Rs 20 to buy other things) plus the value of your time spent at the game..

Economics MCQs with Explanations

A profit-maximizing firm will hire labour until ________ equals the ________?

Which of the following types of coal represents the first stage of formation of coal?

Automatic stabilisers act to ____ government expenditures and ____ government revenues during recessions?

A reasonable measure of the standard of living in a country is?

The unemployment rate is the?

The natural rate of unemployment is generally thought of as the?

Term a tax that is levied by a country of source on income paid, usually on dividends remitted to the home country of the firm operating in a foreign country?

international dumping may involve?

Suppose you find Rs 20. If you choose to use the Rs 20 to go to a football match your opportunity cost of going to the game is?

Economics MCQs with Explanations

A profit-maximizing firm will hire labour until ________ equals the ________?

Which of the following types of coal represents the first stage of formation of coal?

Automatic stabilisers act to ____ government expenditures and ____ government revenues during recessions?

A reasonable measure of the standard of living in a country is?

The unemployment rate is the?

The natural rate of unemployment is generally thought of as the?

Term a tax that is levied by a country of source on income paid, usually on dividends remitted to the home country of the firm operating in a foreign country?

international dumping may involve?

Suppose you find Rs 20. If you choose to use the Rs 20 to go to a football match your opportunity cost of going to the game is?

A profit-maximizing firm will hire labour until equals the ?

Automatic stabilisers act to government expenditures and government revenues during recessions?

A profit-maximizing firm will hire labour until equals the ?

Automatic stabilisers act to government expenditures and government revenues during recessions?