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Economics MCQs
Economics
Quiz # 1, MCQs
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1)
Which of the following is NOT a factor of production?
- A) Labour.
- B) Land.
- C) Capital.
- D) Investment.
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2)
Land is best described as:
- A) Produced factors of production.
- B) "Organizational" resources.
- C) Physical and mental abilities of people.
- D) "Naturally" occurring resources.
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3)
Fixed costs are fixed with respect to changes in:
- A) Output.
- B) Capital expenditures.
- C) Wages.
- D) Time.
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4)
When a firm charges each customer the maximum price that the customer is willing to pay, the firm:
- A) Engages in a discrete pricing strategy.
- B) Charges the average reservation price.
- C) Engages in second-degree price discrimination.
- D) Engages in first-degree price discrimination.
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5)
Say's Law is a proposition underlying classical economics stating that:
- A) Supply creates its own demand.
- B) Leakages are greater than injections.
- C) Unemployment is a common condition.
- D) Consumption expenditures are a function of disposable income.
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6)
An assumption of classical economics is:
- A) Prices and wages are inflexible.
- B) Self-correction takes a long time.
- C) Supply creates its own demand.
- D) Investment and saving are seldom equal.
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7)
Refer to the blow figure, the marginal propensity to consume is:
- A) 0.25
- B) 0.50
- C) 0.60
- D) 0.67
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8)
Real Gross Domestic Product (GDP) equals:
- A) Nominal GDP minus net exports.
- B) Nominal GDP divided by the GDP deflator.
- C) Nominal GDP multiplied by the GDP deflator.
- D) GDP minus depreciation.
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9)
Which of the following statements is TRUE?
- A) Net National Product = Gross National Product – Depreciation.
- B) Net National Product = National Income.
- C) Net National Product = Disposable Personal Income.
- D) Net National Product = Personal Income.
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10)
An individual whose attitude towards risk is known as:
- A) Risk averse.
- B) Risk loving.
- C) Risk neutral.
- D) None of the given options.
