How is economic growth shown on a production possibilities diagram?
Correct answer A. A shift in the production possibilities frontier outward
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Economics MCQs
Page 122 of Economics multiple-choice questions with answers. Tap an option to check yourself.
Page 122 of 131
- Miscellaneous Economics 737
- Basic of Economics 430
- Markets, Efficiency And The Public Interest 167
- Agriculture & Irrigation System of Pakistan 126
- Market 87
- Macroeconomic Issues and Analysis 75
- Money, Interest Rates And Output 73
- Introduction To Economics 70
- Population And Development 62
- Profit Maximizing Under Perfect Competition And Monopoly 56
- Income Inequality 52
- Non-Tariff Trade Barriers 48
- Aggregate Supply, Unemployment And Inflation 45
- Natural Resources and the Environment Toward Sustainable Development 44
- Costs , Supply And Perfect Competition 44
- Human Capital 42
- Labour Market 39
- Monopoly 35
- Long Term Economic Growth 30
- Inflation & Productivity 30
- Regional Trading Arrangements 29
- Characteristics and Institutions of Developing Countries 24
- Oligopoly 23
- Consumer Theory vs. Real Consumers 20
- Applied Microeconomics 20
- Alternative Theories Of The Firm 20
- Public Goods 20
- Balance of Payments, Aid and Foreign Investment 19
- Prices, Wages & Taxes 19
- Comparative GDP 19
- Budget Deficits And The Trade Balance 18
- Macroeconomic Policy Tools 18
- Asymmetric Information 17
- Application of Economics 16
- Production Factors 16
- Monopoly & Competition 15
- Capital Formation, Investment Choice, Information Technology, And Technical Progress 15
- Monetary, Fiscal And Incomes Policy, And Inflation 15
- Average And Total Cost 14
- Poverty, Malnutrition, And Income Inequality 12
- Monetary Union 10
In which of these statements is the economist behaving most like a scientist?
Correct answer D. A reduction in unemployment benefits will reduce the unemployment rate
Two economists are debating unemployment policy. One says the government should tackle unemployment because it is the greatest social evil; the other insists that inflation is the greatest social evil. Why do they disagree?
Correct answer C. They disagree because they have different values
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Which statement about microeconomics and macroeconomics is false?
Correct answer D. The study of very large industries is a topic within macroeconomics
Which of these would NOT move a country’s production possibilities frontier outward?
Correct answer C. A reduction in unemployment
Which one of these statements is normative?
Correct answer A. The unemployment rate should be lower
How are positive statements in economics best described?
Correct answer B. Statements of description that can be tested
Which of these issues falls within the field of microeconomics?
Correct answer C. The impact of oil prices on car production
Two economists are debating unemployment policy. The first says the government could cut unemployment by one percentage point by raising government spending by 50 billion dollars. The second replies that an extra 50 billion dollars would cut unemployment by only one tenth of one percent, and only temporarily. Why do these economists disagree?
Correct answer A. They disagree because they have different scientific judgements
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Why have some economists criticised the traditional profit-maximising theory of the firm?
Correct answer B. Both because firms do not know how to maximise profits and because firms have other aims
Why might public limited companies not maximise their profits?
Correct answer D. Shareholders have little control over managers
In which type of business does the separation of ownership and control tend to occur?
Correct answer D. Public limited companies
Why may a firm be unable to maximise profits?
Correct answer A. Both not knowing its MC and MR and having too little information
According to Williamson, which of these might managers not try to achieve?
Correct answer B. Maximum profits
What do economists usually call the problem caused by the separation of ownership and control?
Correct answer A. Principal-agent problem
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Where does a sales-maximising firm produce?
Correct answer A. Sales revenue is maximized
Growth maximisation is the same as what?
Correct answer A. Maximising the growth of sales revenue
What type of merger is a merger between a clothing firm and a software producer?
Correct answer A. Conglomerate
Fear of takeovers will lead firms to maximise what?
Correct answer A. Profits
Behavioural theories of the firm focus on what kind of interests, and of whom?
Correct answer C. Conflicting; different parts of the firm