Economics MCQs

Page No. 437

A real value can be derived from a nominal value by ?


aadjusting for changes over time


b adjusting for data collection errors


cadjusting for population changes


dadjusting or changes in prices



Time series data show information ?


aabout the same point in time over different places


b about different points in time over the same variable


cabout different variables over different places


dabout different points in time over different places



Macroeconomics is the study of ?


aindividual building blocks in the economy


bthe relationship between different sectors on the economy


chousehold purchase decisions


dthe economy as a whole



In the mixed economy________________?


aeconomics problems are solved by the government and market


b economic decisions are made by the private sector and free market


ceconomic allocation is achieved by the invisible hand


d economics s is solved by government departments



A market can accurately be described as_________________?


aa place to buy things


ba place to sell things


c. the process by which prices adjust to reconcile the allocation of resources


da place where buyers and sellers meet



Economics is the study of ?


a Production technology


b. Consumption decisions


c how society decides what how and for whom to produce


dthe best way to run society



Which of the following is not part of the opportunity cost of going on holiday ?


aThe money you spent on a theater show


b The money you could have made if you had stayed at home and worked


cThe money you spend on airline tickets


dthe money you spent on food



An increase in the price of beef providers information which ?


a provides no information because prices in a market system are managed by planning boards.


btells consumers to buy less pork


ctells producers to produce more beef.


d tells consumers to buy more beef.



High and persistent inflation is caused by ?


a unions increasing wages too much


bOPEC raising the price of oil too much


c governments increasing the quantity of money too much


dregulations raising the cost of production too much



Which of the following statements is true about a market economy ?


aWith a large enough computer, central planners could guide production more efficiently than markets.


b Market participants act as if guided by an invisible hand to produce outcomes that maximize social welfare


cThe strength of a market system is that it tends to distribute resources evenly across consumers.


dTaxes help prices communicate costs and benefits to producers and consumers.



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