If an economy is productively efficient:
(a) Everyone is wealthy
(b) Resources are unemployed
(c) More of one product can only be produced if less of another product is produced
(d) The distribution of income is equal
Latest Economics MCQs
The public sector includes:
(a) Investors owning companies
(b) Government ownership of assets
(c) Market forces of supply and demand
(d) All trade via barter
A system in which private citizens own the factors of production?
(a) Traditionalism
(b) Communism
(c) Capitalism
(d) Profit
Menu costs in relation to inflation refer to:
(a) Costs of finding better rates of return
(b) Costs of altering price lists
(c) Costs of money increasing its value
(d) Costs of revaluing the currency
The effects of inflation on the price competitiveness of a country’s products may be offset by:
(a) An appreciation of the currency
(b) A revaluation of the currency
(c) A depreciation of the currency
(d) Lower inflation abroad
Uruguay Round of multilateral trade negotiations:
(a) Started in 1986 and completed at the end of 1993
(b) Replaced the GATT with WTO
(c) Brought services and agriculture into WTO
(d) All of the above
‘Pass through’ effect in international trade theory refers to:
(a) The proportion of an exchange rate change that is reflected in export and import price change
(b) Exports and imports not facing any tariff barrier
(c) Exports and imports not facing any technical barrier
(d) All of the above
What is ‘Quasi-rents’?
(a) Are in the nature of free gifts
(b) May be applicable to all factors of production
(c) Comprise of all the returns to the firm in excess of the returns of the marginal firm
(d) All the above
The unproductive expenditure of the rich is:
(a) Necessary to the employment of the poor
(b) An impediment to the growth of an economy
(c) Having no bearing on the economy
(d) Having bearing only on the economy of the rich
The allocation of scarce resources and nearly all other economic activity stems from ritual, habit or custom?
(a) Mixed economy
(b) Capitalism
(c) Traditional economy
(d) Communism