Economics MCQs quiz test questions with answers. Basic economics, microeconomics, macroeconomics, managerial economics and world economy multiple choice questions and answers.
(A) If an increase in investment is expected, output will increase.
(B) If an increase in the growth of output is expected, investment will increase.
(C) If an increase in the growth of investment is expected, output will increase.
(D) Small swings in investment are associated with large swings of output.
The answer is: (D)
There are strong theoretical reasons to expect that changes in wealth are responsible for changes in consumption. Nonetheless, one reason that we observe a tight link between consumption and disposable income is:
(A) Credit rationing which changes the intertemporal budget constraint for borrowers.
(B) Households attempt to smooth their consumption.
(C) Household saving provides a buffer between income and expenditure.
(D) Ricardian equivalence
The answer is: (B) Households attempt to smooth their consumption.
(A) GDP
(B) GNP
(C) trade deficit
(D) Debt-GDP ratio
The answer is: (A) GDP
(A) equally distributed
(B) unequally distributed
(C) scarce
(D) unlimited
The answer is: (C) scarce
(A) All prices would be zero
(B) Markets would be unnecessary
(C) Economics would no longer be a useful subject
(D) All of the above
The answer is: (D) All of the above
(A) Imports would be cheaper
(B) Exports would be expensive
(C) foreign investment in the country would be more attractive
(D) foreign investment in the country would be less attractive
The answer is: (D) foreign investment in the country would be less attractive
(A) must be kept constant
(B) must also be analyzed
(C) must not be taken into consideration
(D) none of these
The answer is: (A) must be kept constant
(A) Adam Smith
(B) John Keynes
(C) Friedrich Hayek
(D) Milton Friedman
The answer is: (A) Adam Smith
(A) Adam Smith
(B) John Keynes
(C) Friedrich Hayek
(D) Milton Friedman
The answer is: (B) John Keynes
(A) land and capital
(B) land and labor
(C) land, labor, and capital
(D) land, labor, capital, and investment
The answer is: (C) land, labor, and capital
Inputs are combined with technology to produce outputs. The fundamental inputs (also called factors of production) are land, labor, and capital.