Economics MCQs

Page No. 437

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


aadjusting for changes over time

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b adjusting for data collection errors

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cadjusting for population changes

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dadjusting or changes in prices

✓



Time series data show information ?


aabout the same point in time over different places

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b about different points in time over the same variable

✓


cabout different variables over different places

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dabout different points in time over different places

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Macroeconomics is the study of ?


aindividual building blocks in the economy

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bthe relationship between different sectors on the economy

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chousehold purchase decisions

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dthe economy as a whole

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In the mixed economy________________?


aeconomics problems are solved by the government and market

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

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ceconomic allocation is achieved by the invisible hand

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d economics s is solved by government departments

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A market can accurately be described as_________________?


aa place to buy things

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ba place to sell things

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

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da place where buyers and sellers meet

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Economics is the study of ?


a Production technology

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b. Consumption decisions

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c how society decides what how and for whom to produce

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dthe best way to run society

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


aThe money you spent on a theater show

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

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cThe money you spend on airline tickets

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dthe money you spent on food

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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.

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btells consumers to buy less pork

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ctells producers to produce more beef.

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d tells consumers to buy more beef.

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High and persistent inflation is caused by ?


a unions increasing wages too much

✓


bOPEC raising the price of oil too much

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c governments increasing the quantity of money too much

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dregulations raising the cost of production too much

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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.

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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.

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

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