Economics Practice MCQ Page 4
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: 1124 If a household in consumer equilibrium spends $40 per month on beef and $20 per month on pork, then
- Beef is more expensive than pork
- Beef gives more total utility than pork
- The last pound of beef yields the same marginal utility as the last pound of pork
- The last dollar spent on beef yields the same marginal utility as the last dollar spent on pork
- Beef has a higher marginal utility than pork
Question: 1125 If the marginal utility of a commodity wear negative then
- Less of it would be preferred to more
- The household would only consume it if it were free
- The household should buy more of it to make its marginal utility positive
- The law of diminishing marginal utility would be violated.The household’s consumer surplus must be large
Question: 1133 Which of the following is not part of the institutional arrangements that characterize an economic system?
- Whether property is owned by individuals or the state
- At what level economic decisions are made
- How government officials are selected
- What incentives are used to motivate economic behavior
- How resources are allocated
Question: 1134 When resources are allocated by government planning.
- Capitalism is usually the result
- The economy is normally more efficient
- Decision making is decentralized
- Decision making is decentralized
- Both a. and b .are correct.
Question: 1135 In a socialist economy. The invisible hand
- Guides most resource allocation decisions.
- Operates effectively only in the labor market
- Operates effectively only in the market for capital
- Operates effectively only in the market for capital
- Is prevented from operating effectively
Question: 1136 Is prevented from operating effectively.
- Is prevented from operating effectively
- Were forced to pay very high prices for consumer goods.
- Had difficulty finding enough desirable goods to buy . Were told by the government which goods buy
- Were told by the government which goods buy
- Faced the situations described in both a. and b.
Question: 1137 Government planners play a central role in allocating resources
- Only under socialism
- Only under capitalism
- Under both capitalism and socialism
- Under neither capitalism nor socialism
Question: 1139 Consumers play a central role in allocating resources
- Only under socialism
- Only under capitalism
- Under both capitalism and socialism.
- Under neither capitalism nor socialism
Question: 1140 Economic incentives are important
- Only under socialism
- Only under capitalism
- Equally under capitalism and socialism
- More under capitalism than socialism
- More under socialism than capitalism
Question: 1141 Karl marx
- Led the Russian revolution
- Provided the theoretical basis for socialism
- Developed his theory in response to the great depression of the 1930s
- Played the roles described in both a. and b
- Played the roles described in both b. and c
Question: 1142 As nearly as we can estimate it. Soviet productivity growth
- Was subject to severe cycles
- Accelerated in the 1980s
- Had nothing to do with the decline of socialism
- Was stagnant or declining after about 1965
- Was never positive
Question: 1143 Soviet managers
- Were left little to do under central planning
- Pursued economically efficient choice
- Had incentives to reduce product quality and variety
- Had incentives to reduce production levels
- Had both the incentives described in c. and d.
Answers to the questions of Economics on this page
Following list gives the correct choice for the answer of the Economics mcqs.
1124 . D
1125 . A
1133 . C
1134 . C
1135 . E
1136 . C
1137 . A
1139 . B
1140 . D
1141 . B
1142 . D
1143 . C
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