Economics MCQs

Page No. 442

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


aConsumers


bvoters


c government


dWorkers


View Answer government

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


a Wages and salaries.


b income and money


cgoods and services


dfirms and households


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.


b Lorenz curve.


c Circular-flow diagram.


d Production possibility curve.



The concept of opportunity cost ?


aThe concept of opportunity cost ?


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


cSuggests all our wants can be achieved


dWould be relevant if we eliminated poverty



A recession is ?


aa period of declining prices.


ba period of declining unemployment


ca period during which aggregate output declines.


d a period of very rapidly declining prices.



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


agross national product.


b national demand.


ceconomy-wide demand


daggregate demand


View Answer aggregate demand

The study of inflation is part of ?


adescriptive economics


b normative economics


cmacroeconomics.


dmicroeconomics


View Answer macroeconomics.

Macroeconomics deals with?


a the behavior of the electronics industry


bthe behavior of firms


ceconomics aggregates


d the activities of individual units


View Answer conomics aggregates

Which of the following is a normative statement in economics ?


aMore spending by the government reduces poverty


bHigher taxes lead to less desire to work


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


dhe government should concentrate on reducing unemployment



In a command (planned) economy ?


aThe price mechanism acts as an incentive


bResources are allocated by market forces


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


d The public sector is large



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