Economics MCQs

Economics MCQs

Answer these 300+ Economics MCQs and assess your grip on the subject of Economics. Scroll below and get started!

1: Culture affects economic relationships in which of the following ways?

A.   It shapes the environmental constraints that economic relationships take place under.

B.   It shapes the resources available to a given group of people.

C.   It shapes the goals sought by individuals and the means of achieving those goals.

D.   It shapes how many people engage trade and how many people abstain from it.

2: Why do economists assume that individuals and organizations will always act in a way that provides them with the greatest economic benefit?

A.   Humans evolved in an environment of scarcity and instinctually seek to maximize their possessions.

B.   They observe that human wants are unlimited but the means for achieving them are not.

C.   Industrialization has made resources scarce, and humans must compete in order to survive.

D.   Economists think all humans are as greedy as they are.

3: On which of the following do Western culture and capitalist economic system place a high value?

A.   Kinship and family ties

B.   Wealth and material prosperity

C.   Preservation of natural resources

D.   Altruism and sharing

4: In the United States, access to productive resources ______.

A.   Are distributed evenly across the population

B.   Are more available to some groups than others

C.   Are of limited complexity

D.   Do not include advanced education

5: Which group’s productive resources are primarily simple handmade tools and knowledge of the land?

A.   Foragers

B.   Pastoralists

C.   Horticulturalists

D.   Agriculturalists

6: Capital is different from productive resources because it ______.

A.   Is only used once and then discarded

B.   Only available in cultures that have capitalist economies

C.   Continually reinvested to generate goods beyond subsistence

D.   Requires more labor to create

7: A household is designated as ______.

A.   A group of people sharing a single dwelling

B.   A group of people united by kinship and shared residence

C.   A group of people who collectively own a piece of land

D.   A group of people who employ at least one servant

8: A firm can be composed of ______.

A.   Only kin relations

B.   Any arrangement seeking financial gain

C.   Only nonkin relations

D.   Any nonlaboring groups of people

9: What are the three patterns of exchange observed by Marcel Mauss?

A.   Redistribution, kinship, and firm

B.   Reciprocity, redistribution, and the market

C.   Market, capital, and productive

D.   Traditional, market, and industrial

10: Which of the following types of reciprocity involves a clear obligation to return, within a specified time limit, goods of nearly equal value to those given?

A.   Generalized reciprocity

B.   Balanced reciprocity

C.   Negative reciprocity

D.   Redistribution

11: Why did the Canadian government outlaw the native practice of potlatch for several decades?

A.   They saw it as evidence that natives were stealing from European settlers.

B.   They thought it an irrational waste of food and resources.

C.   They were unable to successfully conduct potlatches of their own.

D.   They did not want natives entering in to competition without oversight.

A.   Cargo system

B.   Capital disbursement

C.   Market exchange

D.   Generalized reciprocity

13: ______ is the predominant economic system in the world today.

A.   Socialism

B.   Capitalism

C.   Mercantilism

D.   Traditional

14: Under a capitalist economic system, what is an individual’s primary economic resource?

A.   Their ties to family and friends

B.   Their land and animals

C.   Their intellectual capacities

D.   Their labor, which they exchange for wages

15: Which of the following statements best reflects the state of capitalism in the world today?

A.   It has been embraced by every member of capitalist countries.

B.   Capitalism has at least some impact on every country in the world.

C.   There are fewer capitalist countries now than before World War II.

D.   Capitalism is only found in wealthy countries.

16: The giving and receiving of goods of nearly equal value with a clear obligation to return a gift within a specified time limit is known as _____

A.   Ideal Reciprocity

B.   Balanced Reciprocity

C.   Gift Reciprocity

D.   All of these

17: Bigmen are self-made leaders who gain power and authority through personal achievement.

A.   True

B.   False

18: Capital refers to productive resources that are used with the primary goal of increasing their _____ financial wealth.

A.   Own

B.   Owner’s

C.   Society’s

D.   All of these

19: Capitalism is an economic system in which people work for _____ are privately owned, and capital is invested for profit.

A.   Wages

B.   Land

C.   Capital goods

D.   All of these

20: Cargo System is a ritual system common in _____ in which wealthy people are required to hold a series of costly ceremonial offices.

A.   South America

B.   Central America

C.   Central Asia

D.   Both a and b

21: The pattern by which different tasks are given to different members of a society is known as_____

A.   Division of Task

B.   Division of Labor

C.   Division of Society

D.   Both a and b

22: Economic System is the patterned way in which people_____ food and other goods.

A.   Produce

B.   Distribute

C.   Consume

D.   All of these

23: _____ is the study of the ways in which the choices people make combine to determine how their society uses its scarce resources to produce and distribute goods and services.

A.   Finance

B.   Economics

C.   Social science

D.   All of these

24: Economizing Behaviour means choosing a course of action to _____ perceived benefit.

A.   Maximize

B.   Minimize

C.   Neutralize

D.   Both a and b

25: Firm is an institution composed of _____ that is organized primarily for financial gain.

A.   Kin

B.   Non kin

C.   Both

D.   None of these

26: Giving and receiving goods with no immediate or specific return expected is known as_____

A.   Balanced Reciprocity

B.   Specific Reciprocity

C.   Generalized Reciprocity

D.   All of these

A.   Production

B.   Consumption

C.   Distribution

D.   All of these

28: Kula Ring is a pattern of exchange among trading partners in the _____ Pacific islands.

A.   East

B.   West

C.   North

D.   South

29: Leveling Mechanism is a_____ that evens out wealth within a society.

A.   Practice

B.   Value

C.   Form of social organization

D.   All of these

30: An economic system in which goods and services are bought and sold at a money price determined primarily by the forces of supply and demand is known as_____

A.   Market Exchange

B.   Goods Exchange

C.   Stock Exchange

D.   All pf these

31: Exchange conducted for the purpose of material advantage and the desire to get something for nothing is known as_____

A.   Balanced Reciprocity

B.   Generalized Reciprocity

C.   Negative Reciprocity

D.   None of these

32: Potlatch is a form of redistribution involving competitive feasting practiced among _____ Coast Native Americans.

A.   Eastwest

B.   Northwest

C.   Southeast

D.   Westeast

33: Productive Resources are _____ used to create other goods or information.

A.   Material goods

B.   Natural resources

C.   Information

D.   All of these

34: Reciprocity is a_____ give-and-take among people of equal status.

A.   One sided

B.   Mutual

C.   Both

D.   None

35: The right of an individual or family to use a piece of land and not to pass that land on to descendants but to sell or trade the land is known as Usufruct.

A.   True

B.   False

36: Exchange in which goods are collected and then distributed to members of a group is known as_____

A.   Distribution

B.   Reciprocity

C.   Redistribution

D.   Both a and c

37: To find the price, a monopolist looks at the price _____ at the chosen quantity.

A.   Demanded

B.   In equilibrium

C.   Supplied

38: Companies felt the need for virtualization because mainframe computers ________.

A.   Required too many specialized professionals

B.   Were very unstable

C.   Often wasted resources

D.   Required expensive software

39: When a country lacks hard currency, it must use _____ to complete international trade.

A.   Social audit

B.   To increase domestic jobs in industries with a comparative advantage versus other countries

C.   Countertrade

D.   All of these

40: In the years following the civil war, ________ became texas's economic mainstay.

A.   Rice

B.   Cattle

C.   Cotton

D.   Oil

E.   None of these

41: Accounting rules require that a bank's ____ equals its ____.

A.   Equity capital; assets plus liabilities.

B.   Assets; liabilities minus equity capital.

C.   Liabilities; assets plus equity capital.

D.   Liabilities; assets minus equity capital

42: Agreements such as the ________ are attempts to standardize international banking regulations.

A.   Basel Accord

B.   UN Bank Accord

C.   GATT Accord

D.   WTO Accord

43: A bulldozer is an example of ________.

A.   Raw and processed materials.

B.   Equipment.

C.   Component parts.

D.   MRO products

44: ____ and ____ are the two basic organizational structures associated with logistics.

A.   Centralized; hierarchical

B.   Fragmented; centralized

C.   Fragmented; unified

D.   Unified; hierarchical

45: ____ are the total demand for an item derived from all of its parents.

A.   An explosion

B.   Gross requirements

C.   Scheduled receipts

D.   Lot sizing

46: ____ is the actual, physical movement of goods and people between two points.

A.   Logistics

B.   Transportation

C.   Materials handling

D.   Materials management

47: ________ a nation's production possibilities frontier represents economic growth.

A.   An outward shift of

B.   An inward shift of

C.   Moving up along

D.   Moving down along

48: ________ is an example of an inter-enterprise information system.



C.   EAI

D.   CRM

E.   ERP

49: ________ is considered while choosing a cost allocation base for activity costs in abc costing.

A.   Market share of a product

B.   Product Price Level

C.   Marketing strategy and material price level

D.   Availability of reliable data and measures

50: ________ is maximized in a competitive market when marginal benefit equals marginal cost.

A.   Deadweight loss

B.   Marginal profit

C.   Economic surplus

D.   Selling price