Economics Practice MCQ Page 44
Multiple Choice questions for Economics in the sets of 10 each on one page with questions and answers. All sets are useful in the preparation of subject tests for employment or admission.
Question: 3805 People who would rely on a gold standard rather than allowing government to control the printing of money are concerned about the problem of
- inflation
- recession
- running out of gold
- too little money in the economy
Question: 3806 The classical school's economic philosophy of laissez-faire was challenged by
- Adam Smith in the Wealth of Nations
- evidence that velocity was not constant
- the Great Depression
- the actual operation of the gold standard
Question: 3889 Aggregate expenditures would rise due to an increase in all of the following except
- consumption
- investment
- government spending
- exports
- imports
Question: 3891 The aggregate expenditure curve
- is the same as the aggregate demand curve
- relates total actual expenditures (including unintended investment) to income
- cannot take account of foreign transaction
- has both the properties described in a an b
Question: 3893 The 45- degree line in the income/expenditure model shows points at which
- income and expenditure are equal
- the economy is at full employment
- the MPC is equal 1
- the MPC is equal to 0.5
- both a and b occur
Question: 3895 In Keynesian equilibrium ,total expenditures in the economy in Figure 6 are equal to
- $ 100 billion
- $120 billion
- $160 billion
- $200 billion
- impossible to determine from the graph
Question: 3896 The marginal propensity to consume in the economy in Figure 6 is
- 0.80
- 0.75
- 0.67
- 0.50
- impossible to determine from the graph
Question: 3897 When the economy in Figure 6 is in equilibrium,the total amount of saving is
- $ 40 billion
- $ 60 billion
- $120 billion
- $ 0
- impossible to determine from the graph
Question: 3898 When the economy in Figure 6 is in equilibrium, the total amount of consumption is
- $ 60 billion
- $ 120 billion
- $160 billion
- $ 200 billion
- impossible to determine from the graph
Question: 3899 If output in the economy in Figure 6 is $ 120 billion,the unintended inventory investment is
- $60 billion
- $40 billion
- $0
- $40 billion
- impossible to determine from the graph
Question: 3900 Increase in current income would cause the
- C and AE curves to shift upward
- C but not the AE curve to shift upward
- AE but not the C curve to shift upward
- C and AE curves to shift downward
- C and AE curve to remain unchanged
Question: 3901 Which of the following is not an equivalent statement of Keynesian equilibrium in the model without government?
- Aggregate expenditures equal output
- Unit tended investment is zero
- Unintended investment equals saving
- Desired investment equals saving
- Consumption equals income minus desired investment
Answers to the questions of Economics on this page
Following list gives the correct choice for the answer of the Economics mcqs.
3805 . A
3806 . C
3889 . E
3891 . B
3893 . A
3895 . D
3896 . D
3897 . A
3898 . C
3899 . D
3900 . E
3901 . C
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