Economics Practice MCQ Page 7

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: 1175   Consumers play a central role in allocating resources
  1. only under socialism
  2. only under capitalism.
  3. under both capitalism and socialism.
  4. under neither capitalism nor socialism.
Question: 1177   Economic incentives are important
  1. only under socialism .
  2. only under capitalism.
  3. equally under capitalism than socialism.
  4. more under socialism than capitalism.
Question: 1178   Karlm Marx
  1. Led the Russian Resolution.
  2. provided the theoretical basis for socialism.
  3. developed his theory in response to the Great Depression of the 1930s.
  4. played the roles described in both a. and b.
  5. played the roles describes in both b and c.
Question: 1179   As nearly we can estimate it,Soviet productivity growth
  1. was subject to severe cycles.
  2. accelerated in the 1980s.
  3. had nothing to do with the decline of socialism.
  4. was stagnant or declining after about 1965
  5. was never positive.
Question: 1181   Under the Soviet system,supply-demand balance was
  1. maintained effectively planners.
  2. unsatisfactorily attempted by planners.
  3. not a major consideration of planners.
  4. left to market-price movements.
  5. both c.and d.
Question: 1182   Soviet managers
  1. were left little to do under central planning.
  2. pursued economically efficient choices.
  3. had incentives to reduce product quality and variety.
  4. had incentives to reduce production levels.
  5. had both the incentives described in c and d.
Question: 1184   Which of the following is not a major aspect of transition of socialist to market economies?
  1. Freeing of prices.
  2. Redefinition of property rights.
  3. Development of market institutions.
  4. Establishment of stronger moral incentives for efficiency.
  5. Disestablishment of large state enterprise.
Question: 1185   The concept of property rights in an economic system has to do with the
  1. ownership of society 's productive resources.
  2. choices firms make on what and how to produce.
  3. use of economic incentives to motivate produce.
  4. use of moral incentives to motivate people.
Question: 1188   In equilibrium,the consumer is not
  1. on the highest indifference curve attainable with his income
  2. achieving his existing level of utility at the cheapest possible cost.
  3. spending all of his income.
  4. maximizing his utility given his income.
  5. on his highest indifference curve.
Question: 1189   Indifference curve reflect
  1. preferences.
  2. income.
  3. prices.
  4. both income and prices.
  5. consumption.
Question: 1190   If a household 's income is $900,the price of compact discs(on the vertical axis) is $15,and the price of cassette tapes(on the horizontal axis) is $10,then budget line intersects the vertical axis at a value of
  1. 900
  2. 15
  3. 60
  4. 80
  5. an indeterminate magnitude based on the data given.
Question: 1191   The absolute value of the slope of the budget line in the previous problem is
  1. 15.
  2. 10.
  3. 1.5.
  4. 0.67.
  5. impossible to determine from the data given.