Economics MCQs


Quiz # 2, MCQs

NOTE: Attempt all Questions to see the Result at the bottom of this page.

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  1. 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.

  2. 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.

  3. 3)

    The item which serves as a medium of exchange is known as:

    • A) Gold.
    • B) Capital.
    • C) Silver.
    • D) Money.

  4. 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.

  5. 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.

  6. 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.

  7. 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.

  8. 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.

  9. 9)

    The relationship between interest rate and consumption is:

    • A) Positive
    • B) Negative.
    • C) Zero.
    • D) Indeterminate.

  10. 10)

    Hysteresis refers to the permanent effects of a:

    • A) Temporary change.
    • B) Structural change.
    • C) Cyclical change.
    • D) Political change.