Economics MCQs

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Which of the following is not an element of fiscal policy?






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Which of the following is associated with a negative Public Sector Net Cash Requirement?






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........................................ taxes are collected by the Revenue authority from a business, which attempts to pass on the tax to consumers...





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If a government has a macro-economic policy objective of expanding the overall level of economic activity, which of the following measures would not ...





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The currency in country X is the Krone while country Y uses the Euro. Country Y has recently experienced an increase in its exchange rate with Countr...






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The following, with one exception, are protectionist measures in international trade. Which is the exception?






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Are the following statements true or false? 1 Frictional unemployment will be short term 2 Governments can encourage labour mobility if they want to...






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Monetary policy is a government economic policy relating to: 1 Interest rates 2 Taxation 3 Public borrowing and spending 4 Exchange rates Which o...






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Which of the following organisations might benefit from a period of high price inflation?





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Which of the following are the goals of macroeconomic policy? 1 Encouraging economic growth 2 Low unemployment 3 Achievement of a balance between e...






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Which of the following is an example of cyclical unemployment?






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A surplus on the balance of payments usually refers to a surplus or deficit on the ........................................ account. Which word corr...





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........................................ economic growth is determined by supply-side rather than by demand side factors. Which word correctly compl...





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1 In a free market economy, the price mechanism:





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The supply curve of a firm operating in a competitive market is its






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A legal minimum price is set which is below the equilibrium price. What will be the impact of this?





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Which one of the following would cause the supply curve for a good to shift to the right (outwards from the origin)?






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When the price of a good is held above the equilibrium price, the result will be





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Which one of the following would not lead directly to a shift in the demand curve for overseas holidays?






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Which of the following is likely to lead to a fall in the price of good Q which is a normal good?






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According to the theory of the firm, which of the following statements describes an oligopoly?






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Which of the following is not a substitute for carpets?





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Which of the following is not a complement to cars?





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The demand for fashion goods is not influenced by:






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If the price of coffee falls, which one of the following outcomes would be expected to occur?






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Consider the price and demand for flower vases. The price of cut flowers goes up sharply. Which of the following would you expect to happen?






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Consider the price and demand for tickets to travel by sea ferry. The price of travelling by hovercraft (a substitute form of travel) goes up. Which ...






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The summer demand for hotel accommodation in London comes mainly from foreign tourists. Demand for hotel rooms in London in summer could be reduced b...






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ABC produces a variety of soft drink. It has two competitors but all three producers use product differentiation to distinguish themselves from each o...






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Suppose that, in a certain advanced industrialised country, the government has applied price controls over rents of both public and private rented ac...






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The demand curve for a resource may shift because of






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Consumer surplus is:






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If the absolute value of the price elasticity of demand for dry white wine is greater than one, a decrease in the price of all wine would result in: ...






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If both the supply and the demand for a good increase, the market price will






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A supply curve illustrates the relationship between






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As a business owner you have determined that the demand for your product is inelastic. Based upon this assessment you understand that






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Which one of the following has an inverse relationship with the demand for money?






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An improvement in technology that in turn leads to improved worker productivity would most likely result in






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Which of the following market features is likely to cause a surplus of a particular product?






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A decrease in the price of a complementary good will






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Demand for a product tends to be price inelastic if






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Which of the following has the highest price elasticity coefficient?






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The local video stores business increased by 12% after the movie theater raised its prices from $6.50 to $7.00. Thus, relative to movie theater adm...






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An individual receives an income of $3,000 per month, and spends $2,500. An increase in income of $500 per month occurs, and the individual spends $...






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Which of the following is not one of the five forces in Porters model for industry analysis?






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Which of the following is a defining characteristic of supply chain management?






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Which of the following is not a likely strategy for a firm in a purely competitive market?






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What is the purpose of a response profile in competitor analysis?






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The process of dividing all potential consumers into smaller groups of buyers with distinct needs, characteristics, or behaviors, who might require ...






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Which of the following measures of unemployment would be of least importance to management when trying to predict the future state of the economy?






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Which of the following best describes the steps involved in performing competitor analysis?






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An oligopolist faces a kinked demand curve. This terminology indicates that






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All of the following are ways that companies in developed countries generally may compete with companies in developing countries except






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The process by which resources are transformed into useful forms is






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The concept of choice would become irrelevant if






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Which of the following is not a resource as the term is used by economists?






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Capital, as economists use the term,






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Opportunity cost, most broadly define, is






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Periods of “less than full employment” of resources correspond to






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What lies is at the heart of the allocation of goods and services in a free-market economy?






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Laboratory (or controlled) experiments cannot be performed in economics because:






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Positive statements are:






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The former Soviet Union was an example of:






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Rational choice or rational decision-making involves






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The PPF can be used to illustrate:






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The concept of “interdependence of markets” can refer to the interdependence between:






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What effect is working when the price of a good falls and consumers tend to buy it instead of other goods?






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The quantity demanded (Qd) of a soft drink brand A has decreased. This could be because:






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Demand curves in P-Q space are derived while holding constant






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Suppose the demand for good Z goes up when the price of good Y goes down. We can say that goods Z and Y are






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If the demand for coffee decreases as income decreases, coffee is






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Which of the following will NOT cause a shift in the demand curve for compact discs?






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Which of the following is consistent with the law of supply?






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The price of computer chips used in the manufacture of personal computers has fallen. This will lead to __________ personal computers.






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When there is excess demand in an unregulated market, there is a tendency for






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Equilibrium in the market for good A obtains






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A shift in the demand curve (drawn in the traditional Price-Quantity space) to the left may be caused by






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A shift in the demand curve (drawn in Income-Quantity space) to the left may be caused by






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A movement along the demand curve (drawn in Quantity-Price space) to the left may be caused by






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When the market operates without interference, price increases will distribute what is available to those who are willing and able to pay the most. T...






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How many different equilibria can obtain when you allow for shifts in the demand and/or the supply curves?






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What will happen to equilibrium price and quantity when the demand curve shifts to the left and the supply curve shifts to the right






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What will happen to equilibrium price and quantity when both the demand and supply curves shift to the left






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A price ceiling imposed by the government can cause a shortage (excess demand)






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What is the effect of imposing a fixed per unit tax on a good on its equilibrium price and quantity?






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A price floor is






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The need for rationing a good arises when






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If the “regulated-market” price is below the equilibrium (or “free-market” price) price,






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If a government were to fix a minimum wage for workers that was higher than the marketclearing equilibrium wage, economists would predict that






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When the decrease in the price of one good causes the demand for another good to decrease, the goods are






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The price elasticity of demand is the






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The price of apples falls by 5% and quantity demanded increases by 6%. Demand for apples is:






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The price of bread increases by 22% and the quantity of bread demanded falls by 25%. This indicates that demand for bread is






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If the cross-price elasticity of demand between two goods is negative, then the two goods are






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If the quantity demanded of beef increases by 5% when the price of chicken increases by 20%, the cross-price elasticity of demand between beef and ch...






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The government is considering placing a tax on cigarettes to raise revenue to finance healthcare projects. The demand for cigar ettes is price inelas...






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The burden (incidence) of a tax will fall mainly on the producers if:






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Income elasticity of demand is the % change in quantity demanded divided by the % change in income. Which type of goods have negative income elastici...






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If total revenue rises by 10% when price increases by 5%, this means:






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If a 5% increase in price causes no change in total revenue, this means: