Economics Practice MCQ Page 6
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: 1162 As the former soviet economy moves toward private market capitalism the world bank suggests first priority should be given to
- Stabilize the macro economy and deregulate prices
- Privatization of state owned businesses
- Dismantling of nuclear weapons
- Adoption of one person one vote democracy
Question: 1163 As the former soviet economy moves toward private market capitalism the world bank suggests first priority should be given to
- Stabilize the macro economy and deregulate prices
- Privatization of state owned businesses
- Dismantling of nuclear weapons
- Adoption of one person one vote democracy
Question: 1164 The economic system used in the former U.S.S.R. is best described as
- Centrally planned capitalism
- Free market socialism
- Pragmatic market socialism
- An administrative command economy
Question: 1165 If business managers are rewarded on the basis of how much output they create
- Consumers will get exactly what they want
- It causes profits to be as large as possible
- Productivity growth must be positive
- There is the potential for quality to suffer
Question: 1166 Early critics of planned socialist economies believed such economies would ultimately fail because they underutilized
- Scarce information
- Labor resources
- Plants and factories
- Natural resources
Question: 1168 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 behaviour.
- How resources are allocated.
Question: 1169 When resources are allocated by government planning.
- capitalism is usually the result.
- the economy is normally more efficient.
- decision making is decentralized.`
- economic incentives are usually weak.
- both a.and b.are correct.
Question: 1170 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.
- gives misleading signals about resource allocation.
- is prevented from operating effectively.
Question: 1171 Consumers in the former Soviet Union
- were able to choose freely among a wide variety of goods.
- 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 to buy.
- faced the situations described in both a and b.
Question: 1173 Government planners play a central role in allocating resouces
- only under socialism.
- only under capitalism.
- under both capitalism and socialism.
- under neither capitalism nor socialism.
Question: 1175 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: 1177 Economic incentives are important
- only under socialism .
- only under capitalism.
- equally under capitalism than socialism.
- more under socialism than capitalism.
Answers to the questions of Economics on this page
Following list gives the correct choice for the answer of the Economics mcqs.
1162 . A
1163 . A
1164 . D
1165 . D
1166 . A
1168 . C
1169 . C
1170 . E
1171 . C
1173 . A
1175 . B
1177 . D
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MCQ for Practicing Subject Tests