Economics MCQs

Page No. 278

An economy may operate outside the production possibility Frontier if ?


aIt is not utilizing its resources fully

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bIt is being productively efficient

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c It is a mixed economy

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d It is trading other economies

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In a free market the combination of products produced will be determined by ?


aMarket forces of supply and demand

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b The government

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c The law

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d The public Sector

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Economic growth can be shown by ?


aAn inward shift of the production possibility frontier

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bA movement along the production possibility frontier

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cAn outward shift of the production possibility frontier

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dA decision by the government to produce inside the production possibility frontier

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A way of helping depressed regions by having wage subsidies lower business taxes and capital subsidies has been suggested as ?


aNew classical economists

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b left-wing theorists

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c interventionist policies

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dmonetarists

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Which of the following statements supports deregulation of industries ?


aTechnological change has made it possible for many industries to become more competitive

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b Because few real natural monopolies exist there is rarely a reason for government regulation

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cMany instances of government regulation have succeeded in reducing competition in industries where competition may be beneficial

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dAll of the above

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View Answer All of the above

Privatisation is the transfer out ?


a Publicly held stock to private individuals

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bcorporately owned businesses to individuals

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c government businesses to the private sector

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dPrivately owned business to the government sector

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Reaganomics was a radical shift in Policy aimed at direct tackling ?


aThe charities economy

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bThe demand side of the country

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c The underground economy

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d the supply side of the economy

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According to supply side economists as tax rates are reduced labour supply should increase. This implies that ?


aThere is no income effect when tax rates are changed

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b The income effect of a wage change is greater than the substitution effect of a wage change.

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c There is no substitution effect when tax rates are changed

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dThe substitution effect of a wage change is greater than the income effect of a wage change

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Which of the following would be considered a supply-side policy ?


aAn increase in the minimum wage that would cause consumer spending to increase

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b Investment tax credits for businesses to encourage investment

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cRestrictions placed on the amount that can be imported

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d An increased in government spending that would lead to increased aggregate demand

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In Which of the business cycle do firms try to cut stocks in order to save costs ?


aThe upturn

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bThe peeking out

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c The expansion

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dThe recession

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View Answer The recession

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