If your grandparents buy a newly built retirement home, which component of GDP is affected?
Correct answer B. Investment
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Economics MCQs
Page 16 of Economics multiple-choice questions with answers. Tap an option to check yourself.
Page 16 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
What does net national product equal?
Correct answer C. Gross National Product minus depreciation
What is commonly used to measure the standard of living?
Correct answer C. Real GDP per capita
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What tends to happen during an economic boom?
Correct answer C. Shortages may occur
How do you get from gross national product to net national product?
Correct answer B. Deduct depreciation
Why might a higher GDP per head not mean that quality of life has really improved?
Correct answer B. It does not measure the quality of the items produced
What measures the value of plant and equipment worn out in producing goods and services?
Correct answer A. Depreciation
Gross domestic product can be calculated as the sum of which components?
Correct answer C. Consumption, investment, government purchases and net exports
Gross domestic product is the total market value of which items?
Correct answer B. Final goods and services
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A cobbler buys leather for Rs 100 and thread for Rs 50, then uses them to make shoes sold to consumers for Rs 500. How much does this add to GDP?
Correct answer B. Rs 500
Real GDP is valued at which prices, and nominal GDP at which prices?
Correct answer A. Base year; current year
Which of these would be left out of UK GDP?
Correct answer D. Copper purchased by tap manufacturer Bristan
Which of the following is NOT a feature of a monopolistically competitive market?
Correct answer B. Long run economic profits
Which statement correctly compares monopolistic competition with monopoly?
Correct answer D. The monopolist makes economic profits in the long run while the monopolistic competitor makes zero economic profits in the long run
A monopolistically competitive firm chooses the quantity at which marginal cost equals what, and how does it then set its price?
Correct answer B. Marginal revenue and then use the demand curve to determine the price consistent with this quantity
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In terms of scale of production and pricing, how do monopolistically competitive firms behave?
Correct answer B. With excess capacity and charge a price above marginal cost
When firms enter a monopolistically competitive market and the business-stealing externality outweighs the product-variety externality, what follows?
Correct answer B. There are too many firms in the market and market efficiency could be increased if firms exited the market
In the term “monopolistic competition”, what does the word “monopoly” refer to?
Correct answer C. A monopolistically competitive firm faces a downward-sloping demand curve for its differentiated product, and so does a monopolist
What do defenders of brand names argue?
Correct answer C. All of these answers
Which of the following is NOT an argument economists make in favour of advertising?
Correct answer A. Advertising provides a creative outlet for artists and writers