miscellaneous MCQs – Page 60

Practise focused miscellaneous questions with marked answers for exam preparation and subject revision.

miscellaneous Mcqs
1181. An increase in interest rates ?
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A. Is likely to reduce savings

B. Is likely to reduce the external value of the currency

C. Leads to a shift in the MEC schedule

D. Leads to a movement along the MEC schedule

1182. A profit maximising firm will invest up to the level of investment where ?
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A. The cost of borrowing equals the marginal efficiency of capital

B. The cost of borrowing is greater than the marginal efficiency of capital

C. The cost of borrowing equals the marginal propensity to consume

D. The cost of borrowing is less then the marginal efficiency of capital
1183. According the law of diminishing returns ?
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A. The marginal product fall as more units of a variable factor are added to a fixed factor

B. The marginal product increases as more units of a variable factor are added to a fixed factor

C. The total product falls as more units of a variable factor are added to a fixed factor

D. Marginal utility falls as more unity of a product are consumed

1184. If an economy is productively efficient ?
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A. Resources are unemployed

B. The distribution of income is eqal

C. More of one product can only be produced if less of another product is produced

D. Everyone is wealthy

1185. Variables that exercise influence on other variables are called ?
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A. independent variables

B. constants

C. dependent variables

D. none of the above

1186. Reaganomics was a radical shift in Policy aimed at direct tackling ?
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A. the supply side of the economy

B. The demand side of the country

C. The underground economy

D. The charities economy

1187. Labour Productivity measures ?
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A. The output per worker

B. Total output

C. The output per machine

D. Marginal output
1188. According to the quantity theory of money an increase in the money supply is most likely to lead to inflation if ?
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A. The velocity of circulation and the number of transactions is constant

B. The number of transaction decrease

C. There is deflation

D. The velocity of circulation decrease

1189. A benefit to consumers of price discrimination is that ?
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A. Producer surplus increases

B. Consumer surplus decreases

C. Some products are produced that would not otherwise be produced

D. Firms profits increase

1190. If marginal cost is positive and falling ?
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A. Total cost is falling

B. Total cost is increasing at a falling rate

C. Total cost is increasing at an increasing rate

D. Total cost is falling at a falling rate

1191. To reduce the supply of money the government could ?
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A. Reduce interest rates

B. Sell government bonds

C. Buy back government bonds

D. Encourage banks to lend
1192. History is often NOT considered a social science because_______________?
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A. historians do not use computers

B. it is not based on evidence

C. it does not study people

D. its primary concern is to record events of the past
1193. A reflationary policy ?
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A. Reducing interest rates

B. Reducing taxation rates

C. increase injections

D. Reducing government spending

1194. If marginal revenue equals marginal cost ?
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A. Profits are maximised

B. Total revenue equals total cost

C. No profit is being made

D. Producing another unit would increase profits

1195. The average variable cost curve ?
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A. is derived from the average fixed costs

B. Equals the total costs divided by the output

C. Converges with the average cost as output increases

D. Equals revenue minus profits

1196. Any combination of products inside the production possibility frontier is ?
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A. X inefficient

B. Allocatively inefficient

C. Productively inefficient

D. Consumer inefficient

1197. If injections are less than withdrawals at the full-employment level of national income, there is ?
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A. A deflationary gap

B. hyperinflation

C. an inflationary gap

D. hysteresis

1198. The proportion of an increase in national income paid in tax is ?
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A. the average tax propensity

B. the marginal tax propensity

C. the fiscal stance

D. the tax multiplier

1199. The law of diminishing returns assumes ?
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A. There are no fixed factors of production

B. There are no variable factors of production

C. Utility is maximised when marginal product falls

D. Some factors of production are fixed

1200. When gathering data, the scientist is required to exhibit all BUT which one of the following traits ?
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A. Courage

B. Ethical neutrality

C. Patience

D. Social involvement