Economics Mcqs
Which of the following activities is most likely to produce an externality?

A. A student eats a hamburger in the student union.
B. A student reads a novel for pleasure
C. A student sits at home and watches t.v
D. A student has a party in her room in the student hall of residence.

Which of the following situations describes the greatest market power ?

A. Subaru’s impact on the price f cars
B. A farmer’s impact on the price of corn
C. Microsoft’s impact on the price of desktop operating systems
D. A student’s impact on college tuition

Workers in Western Europe enjoy a high standard of living because ?

A. The countries of western europe have set high minimum wage rates.
B. Unions in western europe keep the wage high
C. None of these answers.
D. The countries of western europe have protected their industries from foreign corporation

Raising taxes and increasing welfare payments ?

A. Reduces market power
B. Proves that there is such a thing as a free lunch
C. Improves efficiency at the expense of equity.
D. Improves equity at the expense of efficiency.

Foreign trade ?

A. Increase the scarcity of resources.
B. Makes a country more equitable.
C. Allows a country to have a greater variety of products at a lower cost than if it tried to produce everything to home.
D. None of these

Which of the following involves a trade – off ?

A. Taking a nap
B. All of these answers involve trade-offs
C. Watching a football game on saturday afternoon
D. Going to university

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

A. Wages and salaries.
B. Income and money
C. Goods and services.
FirMs and households

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

A. Gross national product.
B. National demand.
C. Economy-wide demand
D. Aggregate demand

A recession is ?

A. A period of declining prices.
B. A period of declining unemployment
C. A period during which aggregate output declines.
D. A period of very rapidly declining prices.