Daily Updated MCQS

Q:Productivity can be increased by ?

  • (A)improving the education of workers
  • (B)raising union wages
  • (C)raising minimum wages
  • (D)restricting trade with foreign countries
  • The Correct Answer is improving the education of workers

    Uploaded By Saad Naveed

Q:Which of the following activities is most likely to produce an externality?

  • (A)A student eats a hamburger in the student union
  • (B)A student reads a novel for pleasure
  • (C)A student sits at home and watches T.V
  • (D)A student has a party in her room in the student hall of residence
  • The Correct Answer is A student has a party in her room in the student hall of residence

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Q:Foreign trade ?

  • (A)increase the scarcity of resources
  • (B)makes a country more equitable
  • (C)allows a country to have a greater variety of products at a lower cost than if it tried to produce everything to home
  • (D)None of these
  • The Correct Answer is allows a country to have a greater variety of products at a lower cost than if it tried to produce everything to home

    Uploaded By Saad Naveed

Q:Raising taxes and increasing welfare payments ?

  • (A)reduces market power
  • (B)Proves that there is such a thing as a free lunch
  • (C)improves efficiency at the expense of equity.
  • (D)improves equity at the expense of efficiency
  • The Correct Answer is improves equity at the expense of efficiency

    Uploaded By Saad Naveed

Q:Economics is the study of ?

  • (A)how society manages its unlimited resource
  • (B)how to reduce our wants until we are satisfied
  • (C)how to fully satisfy our unlimited wants
  • (D)how to avoid having to make trade-offs
  • The Correct Answer is how to reduce our wants until we are satisfied

    Uploaded By Saad Naveed

Q:Which of the following involves a trade off ?

  • (A)Taking a nap
  • (B)All of these answers involve trade-offs
  • (C)Watching a football game on Saturday afternoon
  • (D)Going to university
  • The Correct Answer is All of these answers involve trade-offs

    Uploaded By Saad Naveed

Q:In a planned or command economy, all the economics decisions are taken by the ?

  • (A)Consumers
  • (B)voters
  • (C)government
  • (D)Workers
  • The Correct Answer is government

    Uploaded By Saad Naveed

Q:The circular flow of goods and incomes shows the relationship between?

  • (A)Wages and salaries
  • (B)income and money
  • (C)goods and services
  • (D)firms and households
  • The Correct Answer is income and money

    Uploaded By Saad Naveed

Q:A graph showing all the combinations of goods and services that can be produced if all of society’s resources are used efficiently is a ?

  • (A)capital consumption frontier
  • (B)Lorenz curve
  • (C)Circular-flow diagram
  • (D)Production possibility curve
  • The Correct Answer is Production possibility curve

    Uploaded By Saad Naveed

Q:A recession is ?

  • (A)a period of declining prices
  • (B)a period of declining unemployment
  • (C)a period during which aggregate output declines
  • (D)a period of very rapidly declining prices
  • The Correct Answer is a period during which aggregate output declines

    Uploaded By Saad Naveed

Q:A graph showing all the combinations of goods and services that can be produced if all of society’s resources are used efficiently is a ?

  • (A)capital consumption frontier
  • (B)Lorenz curve
  • (C)Circular-flow diagram
  • (D)Production possibility curve
  • The Correct Answer is Production possibility curve.

    Uploaded By Saad Naveed

Q:Economics is the study of ?

  • (A)how society manages its unlimited resource
  • (B)how to reduce our wants until we are satisfied.
  • (C)how to fully satisfy our unlimited wants
  • (D)how to avoid having to make trade-offs
  • The Correct Answer is how to reduce our wants until we are satisfied.

    Uploaded By Saad Naveed

Q:In a planned or command economy, all the economics decisions are taken by the ?

  • (A)Consumers
  • (B)voters
  • (C)government
  • (D)Workers
  • The Correct Answer is government

    Uploaded By Saad Naveed

Q:The circular flow of goods and incomes shows the relationship between?

  • (A)Wages and salaries
  • (B)income and money
  • (C)goods and services
  • (D)firms and households
  • The Correct Answer is income and money

    Uploaded By Saad Naveed