Try to answer these 30 Economics Fundamentals MCQs and check your understanding of the Economics Fundamentals subject.
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A. It increases.
B. It decreases.
C. It remains unchanged.
D. None of the above.
A. Deflation
B. Economic efficiency
C. Opportunity cost
D. Balanced Growth
A. More than one
B. One
C. Less than one
D. Infinite
A. Is fixed except if there is a change in the government's tax policies.
B. Is fixed once and for all because capital goods are irreproducible economic goods.
C. Is fixed in the very short run only. The reason being if the capital is allowed to wear out, its supply decreases, while whenever there is a new investment, its supply increases.
D. Can vary in the short run depending on factors like their frequency of use in a week, the intensity with they are used, etc.
A. Sectoral economy
B. Dual economy
C. Pluralistic economy
D. Regional economy
A. Devaluation
B. Depreciation
C. Revaluation
D. Redenomination
A. Centralized planning
B. Decentralized planning
C. Fiscal planning
D. Financial planning
A. Four
B. Six
C. Two
D. Three
A. $5.50 billion USD
B. $5.25 billion USD
C. $4.75 billion USD
D. $2.50 billion USD
A. Whether it is possible to change the costs during the life of the plant.
B. Whether the costs are contracted legally or not.
C. Whether the costs are taken into account or not when calculating the total costs.
D. Whether the costs vary or remain unchanged with the quantity or output produced in the short run.
A. Evenly along its entire length.
B. More along the axis measuring the Labour-intensive commodity.
C. More along the axis measuring the Capital-intensive commodity.
D. Any of the above.
A. Business
B. Consumer
C. Government
D. All of the above
A. It is not possible to measure physical volumes.
B. They do not allow for quality improvements.
C. It is not possible to compare physical volumes.
D. None of the above.
A. Do not depend on input prices.
B. Depend on the inputs prices.
C. Do not depend on the quantity of the inputs.
D. None of the above.
A. National income = Consumption + Investment
B. National income = Effective demand consumption + Savings
C. National income = Consumption + Savings
D. National income = Gross National Product
A. A branch of knowledge concerned with the production, distribution, and consumption of goods and services.
B. The study of the processes, principles, and structure of government, and of political institutions.
C. The study of the mind and behavior.
D. The analysis and interpretation of the past that enables us to study continuity and change over time.
A. Returns to scale
B. Constant returns to scale
C. Decreasing returns to scale
D. None of the above
A. ΔM / ΔX
B. ΔX / ΔY
C. ΔM/ ΔY
D. ΔM /Y
A. To avoid double counting.
B. To avoid the inclusion of inferior goods.
C. To avoid cheating of the consumer.
D. None of the above.
A. Real National Income by the Working Population
B. Real National Income by the Total Population
C. Real National Income by the Number of Workers
D. None of these.
A. Agriculture
B. Industries
C. Experiments in agricultural institutions
D. None of the above
A. A financial adjustment.
B. A long-term adjustment.
C. A short-term adjustment.
D. None of the above.
A. Roof repair work done by the owner of a house himself.
B. Household work done by a housewife.
C. Vegetables grown by a farmer for his personal consumption.
D. A surgery carried out at a hospital.
A. Prohibitive tariff
B. Optimum tariff
C. Effective tariff
D. Protective tariff
The breakdown of the gold standards was the result of which of the following factors?
1. Deflation policies caused considerable difficulties.
2. Some gold standard countries did not obey the gold standard rules.
3. Sterling was over valued.
4. The export of gold became impossible.
A.
1 and 2Â
B.
1, 2 and 3 only
C.
2, 3 and 4 only
D.
1, 2, 3 and 4
A. Industrial growth
B. Internal savings
C. Agricultural growth
D. Low rate of capital formation
A. Increase
B. Decrease.
C. Are impossible to determine without knowing the strength of the increasing returns to scale.
D. Are constant.
Consider the following information:
National Income at current prices for the year Y1 = $30 billion USD
National Income at current prices for the year Y2 = $80 billion USD
Price Index for Y1 = 150
Price Index for Y2 = 200
What should be the National Income at constant prices for the year Y2?
A.
$40 billion USD
B.
$60 billion USD
C.
$53 billion USD
D.
None of the above
________________ is a market structure in which many sellers sell differentiated products.
A.
Monopolistic competitionÂ
B.
Pure competition
C.
Oligopoly
D.
All of the above
A. Diminish
B. Increase
C. Remain constant
A. Birth rates are much higher than death rates, so the population is growing rapidly
B. Population size grows faster and faster as the population gets bigger.
C. The population stops increasing in size.
D. Advocates mixed-species plantings and rotating crops
A. Single seller
B. Licenses
C. Price is greater than marginal cost
D. Differences among buyers' elasticities of demand
A. Long run; reducing production or shutting down
B. Accounting profit; excluding opportunity cost
C. Short run; the quantity of output where profits are highest
D. Long run; increasing its production
A. The tools and instruments used to produce other goods and services
B. The goods market and the factor market
C. Pay rent, wages, interest, and profit; earn rent, wages, interest, and profit
D. Antonio, the manager of the local Taco Hut, purchases a new deep fryer
A. Marginal costs must be increasing; average total
B. Equal to; average variable cost is minimized.
C. Both
D. None of these
A. Temporal
B. Sequential
C. Atmospheric
D. Spatial
E. Epistemic
A. Is determined by a decision of the government or the central bank and is achieved by central bank intervention in the foreign exchange market to block the unregulated forces of demand and supply
B. Is determined by demand and supply in the foreign exchange market with no direct intervention by the central bank
C. Follows a path determined by a decision of the government or the central bank and is achieved by central bank intervention in the foreign exchange market
D. Operated in the world economy from the end of World War II to the early 1970s
A. A potential cultural backlash against homogenizing effects
B. The declined ability to take advantage of foreign trade
C. A declining sense of community as integration proceeds
D. A greater diversity of cultures