Economics MCQs

Page No. 442

In a planned or command economy, all the economics decisions are taken by the ?


aConsumers

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bvoters

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c government

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dWorkers

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View Answer government

The circular flow of goods and incomes shows the relationship between?


a Wages and salaries.

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b income and money

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cgoods and services

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dfirms and households

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View Answer income and money

A graph showing all the combinations of goods and services that can be produced if all of society’s resources are used efficiently is a ?


acapital consumption frontier.

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b Lorenz curve.

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c Circular-flow diagram.

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d Production possibility curve.

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The concept of opportunity cost ?


aThe concept of opportunity cost ?

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bSuggests a major increase in public health care spending means an expansion in other areas will be harder to achieve.

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cSuggests all our wants can be achieved

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dWould be relevant if we eliminated poverty

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A recession is ?


aa period of declining prices.

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ba period of declining unemployment

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ca period during which aggregate output declines.

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d a period of very rapidly declining prices.

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The total demand for goods and services in an economy is known as_____________?


agross national product.

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b national demand.

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ceconomy-wide demand

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daggregate demand

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View Answer aggregate demand

The study of inflation is part of ?


adescriptive economics

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b normative economics

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cmacroeconomics.

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dmicroeconomics

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View Answer macroeconomics.

Macroeconomics deals with?


a the behavior of the electronics industry

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bthe behavior of firms

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ceconomics aggregates

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d the activities of individual units

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View Answer conomics aggregates

Which of the following is a normative statement in economics ?


aMore spending by the government reduces poverty

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bHigher taxes lead to less desire to work

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cThe Pakistan’s economy is growing fast relative to other SAARC members

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dhe government should concentrate on reducing unemployment

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In a command (planned) economy ?


aThe price mechanism acts as an incentive

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bResources are allocated by market forces

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cIndividual firms make decisions for themselves about what to produce and how to produce it

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d The public sector is large

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