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Economics MCQs
Economics
Quiz # 2, MCQs
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1)
Let L equal the size of the labor force, E the number of employed workers, and U the number of unemployed workers. The unemployment rate is equal to:
- A) (L + E)/L.
- B) U/L.
- C) 1 + (E/L).
- D) All of the given options.
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2)
Which of the following can happen in a boom period?
- A) Unemployment is likely to fall.
- B) Prices are likely to fall.
- C) Demand is likely to fall.
- D) Imports are likely to grow.
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3)
The item which serves as a medium of exchange is known as:
- A) Gold.
- B) Capital.
- C) Silver.
- D) Money.
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4)
A tariff is defined as:
- A) A restriction on exports.
- B) A tax placed on an imported product.
- C) A limit on the amount of a good or service that can be exported.
- D) A limit on the amount of a good or service that can be imported.
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5)
Countries that are not among the high income nations of the world are categorized as:
- A) Developed countries.
- B) Progressed countries.
- C) Developing countries.
- D) High income countries.
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6)
If average physical product (APP) is decreasing then which of the following must be true?
- A) Marginal physical product is more than the average physical product.
- B) Marginal physical product is less than the average physical product.
- C) Marginal physical product is decreasing.
- D) Marginal physical product is increasing.
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7)
When different prices are charged to customers who purchase different quantities, this is an example of
- A) Second-degree price discrimination.
- B) First-degree price discrimination.
- C) Monopoly.
- D) Perfect competition.
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8)
Which of the following may cause a decrease in national income?
- A) Increase imports.
- B) Decrease unemployment.
- C) Decreasing exports.
- D) None of the given options.
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9)
The relationship between interest rate and consumption is:
- A) Positive
- B) Negative.
- C) Zero.
- D) Indeterminate.
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10)
Hysteresis refers to the permanent effects of a:
- A) Temporary change.
- B) Structural change.
- C) Cyclical change.
- D) Political change.
