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MCQOPTIONS
This section includes 1337 Mcqs, each offering curated multiple-choice questions to sharpen your Economics Mcqs knowledge and support exam preparation. Choose a topic below to get started.
| 951. |
Recent events vividly demonstrate that nationalism is_______________? |
| A. | dead |
| B. | the source of wars and atrocities |
| C. | at most a quaint reminder of past political cultures |
| D. | the bastion of freedom and world peace |
| Answer» C. at most a quaint reminder of past political cultures | |
| 952. |
Charismatic leaders_______________? |
| A. | appear only in traditional societies |
| B. | may appear in societies with either a traditional or a legal-rational base of authority |
| C. | establish a stable social organization |
| D. | are only characteristic of theocracies |
| Answer» C. establish a stable social organization | |
| 953. |
The basic components of the state include ALL BUT WHICH of the following ? |
| A. | Territory |
| B. | Population |
| C. | Armed services |
| D. | Sovereignty |
| Answer» D. Sovereignty | |
| 954. |
According to French philosopher Jean-Jacques Rousseau the state emerged_______________? |
| A. | to restore peace |
| B. | after the establishment of private property |
| C. | because people began to fight among themselves |
| D. | all of the above |
| Answer» C. because people began to fight among themselves | |
| 955. |
Conflict theorists see the states functions as________________? |
| A. | protecting the interest of the ruling elite only |
| B. | helping the poor and homeless |
| C. | bringing peace to its citizens |
| D. | directing the economy |
| Answer» B. helping the poor and homeless | |
| 956. |
Another term for nationalism might be________________? |
| A. | racism |
| B. | imperialism |
| C. | colonialism |
| D. | national ethnocentrism |
| Answer» E. | |
| 957. |
Latent functions of government include_______________? |
| A. | public education |
| B. | health care |
| C. | the rise of administrative elites |
| D. | war |
| Answer» D. war | |
| 958. |
Ideology________________? |
| A. | explains why things are as they are |
| B. | underlie all social movements |
| C. | underlie all governments |
| D. | all of the above |
| Answer» C. underlie all governments | |
| 959. |
In order for power to be legitimate a government must have_____________? |
| A. | the ability to coerce agreement |
| B. | legitimate authority |
| C. | a charismatic leader |
| D. | a strong army |
| Answer» C. a charismatic leader | |
| 960. |
Politics may be defined as_______________? |
| A. | the statuses and roles that enforce the law |
| B. | the legitimate use of force within a territory |
| C. | the process by which individuals and groups acquire power |
| D. | all of the above |
| Answer» D. all of the above | |
| 961. |
“My country right or wrong” is an example of_______________? |
| A. | nationalism |
| B. | legal-rational thinking |
| C. | an internationalist world view |
| D. | a reasoned approach to detente |
| Answer» B. legal-rational thinking | |
| 962. |
The marginal propensity to consume is equal to ? |
| A. | Total spending / total consumption |
| B. | Total consumption / total income |
| C. | change in consumption / change in income |
| D. | Change in consumption / change in savings |
| Answer» B. Total consumption / total income | |
| 963. |
The socially optimal rate of growth is ? |
| A. | Zero |
| B. | Negative |
| C. | Where the marginal social benefit = the marginal social cost |
| D. | Total social costs are minimised |
| Answer» D. Total social costs are minimised | |
| 964. |
Resources are defined as___________________? |
| A. | anything that is manmade |
| B. | anything that is produced in factories |
| C. | anything that is derived from natural including |
| D. | everything that is needed for the production of goods and services including human energy |
| Answer» E. | |
| 965. |
The group way of life characteristic of humans may be traced to____________? |
| A. | our human ancestors way of life in trees |
| B. | the fact that human infants are helpless for a long period of time |
| C. | a faulty genetic development |
| D. | the small size of humans relative to other animals |
| Answer» C. a faulty genetic development | |
| 966. |
A significant increase in the government budget deficit is likely to ? |
| A. | Reduce injections into the economy |
| B. | Reduce national income |
| C. | Move the economy away from full employment |
| D. | Boost aggregate demand |
| Answer» D. Boost aggregate demand | |
| 967. |
A benefit to consumers of price discrimination is that ? |
| A. | Some products are produced that would not otherwise be produced |
| B. | Producer surplus increases |
| C. | Consumer surplus decreases |
| D. | Firm’s profits increase |
| Answer» D. Firm’s profits increase | |
| 968. |
If the marginal propensity to consume on domestic products is 0.9 the size of the multiplier is ? |
| A. | 10 |
| B. | 1 |
| C. | 9 |
| D. | 0.1 |
| Answer» E. | |
| 969. |
When marginal revenue equals marginal cost ? |
| A. | Total revenue equals total cost |
| B. | There is the biggest positive difference between total revenue and total cost |
| C. | There is the biggest negative difference between total revenue and total cost |
| D. | Profits are Zero |
| Answer» D. Profits are Zero | |
| 970. |
If the marginal revenue is Positive ? |
| A. | Selling another unit will increase total revenue |
| B. | Selling another unit will increase profits |
| C. | Selling another unit will increase costs |
| D. | Selling another unit will increase average revenue |
| Answer» E. | |
| 971. |
An independent assessment of the impact of firm’s activities on society is called a ? |
| A. | Financial audit |
| B. | Balance sheet |
| C. | Profit and loss account |
| D. | Social audit |
| Answer» B. Balance sheet | |
| 972. |
To be Productively efficient a firm must produce where ? |
| A. | Marginal costs are maximized |
| B. | Marginal costs are Minimized |
| C. | Average costs are minimized |
| D. | Average costs are maximized |
| Answer» B. Marginal costs are Minimized | |
| 973. |
To maximise growth without making a loss a firm should produce the highest output where ? |
| A. | Average revenue equals marginal cost |
| B. | Average revenue equals average cost |
| C. | Marginal revenue equals marginal cost |
| D. | Average cost equals marginal cost |
| Answer» D. Average cost equals marginal cost | |
| 974. |
If an increase in investment leads to a bigger increase in national income this called the ? |
| A. | Accelerator |
| B. | Aggregate demand |
| C. | Monetarism |
| D. | Multiplier |
| Answer» C. Monetarism | |
| 975. |
In industrial societies consumption ? |
| A. | must always be limited |
| B. | maintains and fuels demand |
| C. | is not a factor |
| D. | is viewed unfavorably |
| Answer» C. is not a factor | |
| 976. |
If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 total consumption is what ? |
| A. | 0.8 |
| B. | 800 |
| C. | 810 |
| D. | 0.81 |
| Answer» B. 800 | |
| 977. |
In Price discrimination abnormal profits are made if ? |
| A. | Average revenue is greater than average variable cost |
| B. | Average revenue is greater than average cost |
| C. | Average revenue is greater than marginal revenue |
| D. | Average revenue is greater than average fixed cost |
| Answer» D. Average revenue is greater than average fixed cost | |
| 978. |
If the price elasticity is -0.3 this means ? |
| A. | Demand is upward sloping |
| B. | Demand is price elastic |
| C. | A price fall would increase revenue |
| D. | Demand is price inelastic |
| Answer» B. Demand is price elastic | |
| 979. |
A fall in interest rates is likely to ? |
| A. | Increase aggregate demand |
| B. | Increase savings |
| C. | Decrease consumption |
| D. | Decrease exports |
| Answer» B. Increase savings | |
| 980. |
The precautionary demand for money is ? |
| A. | An idle because |
| B. | An active balance |
| C. | Directly related to interest rates |
| D. | Inversely related to income |
| Answer» B. An active balance | |
| 981. |
To anticipate what the economy is going to do next the government will look at ? |
| A. | Lagging indicators |
| B. | Flashing indicator |
| C. | Coincidental indicators |
| D. | Leading indicators |
| Answer» E. | |
| 982. |
Potential growth measures ? |
| A. | the growth of the fastest economy in the world |
| B. | The fastest growth an economy has ever achieved |
| C. | The present rate of growth of an economy |
| D. | The rate of growth that could be achieved if resources were fully employed |
| Answer» B. The fastest growth an economy has ever achieved | |
| 983. |
If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 the average propensity to consume is what ? |
| A. | 0.8 |
| B. | 800 |
| C. | 810 |
| D. | 0.81 |
| Answer» D. 0.81 | |
| 984. |
Friedman’s theory of consumption focuses on ? |
| A. | Past income |
| B. | Current income |
| C. | Disposable income |
| D. | permanent income |
| Answer» E. | |
| 985. |
Investment is ? |
| A. | An injection that increases aggregate demand |
| B. | A withdrawal that increase aggregate demand |
| C. | An injection that decreases aggregate demand |
| D. | A withdrawal that decrease aggregate |
| Answer» E. | |
| 986. |
Which of the following is an injection into the economy ? |
| A. | Investment |
| B. | Savings |
| C. | Taxation |
| D. | Imports spending |
| Answer» D. Imports spending | |
| 987. |
Investment depends mainly on ? |
| A. | Past levels of income |
| B. | Future expected profits |
| C. | Present national income levels |
| D. | Historic data |
| Answer» D. Historic data | |
| 988. |
An increase in investment is most likely to be caused by ? |
| A. | Lower interest rates |
| B. | Lower national income |
| C. | A decrease in the marginal propensity to consume |
| D. | An increase in withdrawals |
| Answer» D. An increase in withdrawals | |
| 989. |
An increase in interest rates ? |
| A. | Is likely to reduce savings |
| B. | Is likely to reduce the external value of the currency |
| C. | Leads to a shift in the MEC schedule |
| D. | Leads to a movement along the MEC schedule |
| Answer» D. Leads to a movement along the MEC schedule | |
| 990. |
An increase in consumption at any given level of income is likely to lead to ? |
| A. | A fall is savings |
| B. | An increase in exports |
| C. | A fall in taxation revenue |
| D. | A decrease in import spending |
| Answer» C. A fall in taxation revenue | |
| 991. |
The marginal propensity to withdraw is ? |
| A. | 1/investment multiplier |
| B. | 1-(1/injections multiplier |
| C. | MPS + MPT + MPM |
| D. | the proportion of national income that is withdraw from the circular flow of income |
| Answer» D. the proportion of national income that is withdraw from the circular flow of income | |
| 992. |
A variable whose value is determined by the model of which it is a part is termed ? |
| A. | exogenous |
| B. | constant |
| C. | endogenous |
| D. | independent |
| Answer» D. independent | |
| 993. |
As the MPS increases the multiplier will ? |
| A. | decrease |
| B. | remain constant |
| C. | increase |
| D. | either increase or decrease depending on the size of the change in investment |
| Answer» B. remain constant | |
| 994. |
Economic growth can be measured by ? |
| A. | The CPI |
| B. | The CBI |
| C. | GDP |
| D. | MPC |
| Answer» B. The CBI | |
| 995. |
Open Market Operations occur when the government ? |
| A. | Reduces the interest rate |
| B. | Buys and sells bonds and securities |
| C. | Increases taxation |
| D. | Increase the exchange rate |
| Answer» D. Increase the exchange rate | |
| 996. |
The ratio of change in the equilibrium level of output to a change in some autonomous variable is the ? |
| A. | automatic stabiliser |
| B. | multiplier |
| C. | elasticity coefficient |
| D. | marginal propensity of the autonomous variable |
| Answer» C. elasticity coefficient | |
| 997. |
If firms earn normal profits ? |
| A. | They will aim to leave the industry |
| B. | Other firms will join the industry |
| C. | The revenue equal total costs |
| D. | No profit is made is accounting terms |
| Answer» D. No profit is made is accounting terms | |
| 998. |
The fraction of change in income that is consumed or spend is called ? |
| A. | the marginal propensity of expenditure |
| B. | the marginal propensity to save |
| C. | the average propensity to consume |
| D. | the marginal propensity to consume |
| Answer» D. the marginal propensity to consume | |
| 999. |
Keynes suggested that decisions to consume and save were based on ? |
| A. | previous decisions |
| B. | absolute income |
| C. | relative income |
| D. | permanent income |
| Answer» C. relative income | |
| 1000. |
Assuming there is no government or foreign sector, if the multiplier is 2.5 the MPC is ? |
| A. | 4 |
| B. | 25 |
| C. | 6 |
| D. | 2.5 |
| Answer» D. 2.5 | |