Question # 1

A recurring theme in economics is.

Choose an answer

People have unlimited wants in the face of limited resources

There are unlimited resources

Our country is rich, we just don't realize it

People have limited wants in the face of limited resource.

If marginal product is below average product.

Choose an answer

The total product will fall

The average product will fall

Average variable costs will fall

Total revenue will fall

The liquidity trap occurs when the demand for money

Choose an answer

Is perfectly interest elastic

Is perfectly interest inelastic

Means that an increase in money supply leads to a fall int he interest rate

Means that an increase in the money supply leads to an increase in the interest rate

If marginal cost is positive and falling.

Choose an answer

Total cost is falling

Total cost is increasing at a falling rate

Total cost is falling at a falling rate

Total cost is increasing at an increasing rate.

Which of the following would increase aggregate demand.

Choose an answer

Increasing saving

Increasing import spending

Increasing taxation revenue

increased investment

If a maximum price is set below equilibrium there will be.

Choose an answer

A price fall

A price increase

Excess supply

Excess demand

Say's law states that

Choose an answer

Supply creates its own demand

Demand creates its own supply

There is no such things as a free lunch

Macro economics policy activism is essential to ensure full employment.

If one car company takes over another car company this is an example of which type of integration.

Choose an answer

Vertical

Horizontal

Conglomerate

Literal

Increase un employment benefits and less incentive to work would.

Choose an answer

Shift aggregate supply to the right

Shift aggregate supply to the left

Shift aggregate demand to the right

Shift aggregate demand to the left

An increase in the wage rate.

Choose an answer

Will usually lead to more people employed

Will decrease total earnings if the demand for labour is wage elastic

Is illegal in a free market

Will cause a shift in the demand for labour

If inflationary expectations increase, the short run Phillip's curve will

Choose an answer

Become vertical

Become up warding sloping

Shift to the right

Shift to the left

Which of the following is a normative statement in economics.

Choose an answer

More spending by the government reduces poverty

Higher taxes lead to less desire to work

the UK Economy is growing fast relative to other European Union members

The Government should concentrate on reducing unemployment

Improved training of employees would.

Choose an answer

Shift aggregate supply to the right

Shift aggregate supply to the left

Shift aggregate demand to the right

Shift aggregate demand to the left

With a positive externality

Choose an answer

There is under consumption in the free market

There is over consumption in the free market

The government may tax to decrease production

Society could be made off if less was produced

Why might a country resist globalization.

Choose an answer

Greater choice of final products

Greater choice of supplies

Greater competition for domestic firms

More markets to sell to

A reduction in the money supply is likely to

Choose an answer

Reduce interest rates

Increase the interest rate

Increase inflation

Decrease deflation

Supply is likely to be more price elastic.

Choose an answer

In the short run rather than the long run

If factors of production are relatively immobile between industries.

If there are very few producers

If it is easy to expand output

When marginal revenue equals marginal cost

Choose an answer

Total revenue equal total cost

There is the biggest positive difference between total revenue and total cost

there is the biggest negative difference between total revenue and total cost.

Profits are zero

Economists use the term utility to mean

Choose an answer

The value of a product before it has been advertised

The satisfaction a consumer obtains from a good or service

any characteristic of a good or service which cannot be measured

The contribution a good or service makes to social welfare

World trade has been increasing due to.

Choose an answer

Increased tariffs

Increased legal barriers

Increased embargoes

Reduced protectionism

If there is a price floor there will be.

Choose an answer

Shortages

Surpluses

Equilibrium

All of these

More Classes

Other Links

PPSC Economics Chapter 1 Basic Economics MCQs With Answers

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer