Which of these countries does not belong to the European Union?
Correct answer A. Iceland
Subject / 2,616 questions
Economics MCQs
Page 2 of Economics multiple-choice questions with answers. Tap an option to check yourself.
Page 2 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 mainly distinguishes monopolistic competition from perfect competition?
Correct answer C. In monopolistic competition, firms can differentiate their products
Which US factor of production is most likely to lose out (see its factor payment fall) because of NAFTA?
Correct answer D. Unskilled labour
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A monopolistically competitive firm is making a loss. It will keep producing as long as its price is high enough to cover which costs?
Correct answer C. Variable costs
What effect has the EU’s Common Agricultural Policy had on American farm exports?
Correct answer A. It has decreased American farm exports to the EU
Why are the long-run equilibrium outcomes of monopolistic competition and perfect competition similar?
Correct answer D. Firms earn only a normal profit
When several countries impose a common external tariff, scrap tariffs among themselves and remove barriers to the movement of labour and capital between them, what have they formed?
Correct answer D. Common market
Under the Common Agricultural Policy, how are exports of surplus EU produce encouraged?
Correct answer D. Export subsidies
When one breakfast cereal maker launched an advertising campaign stressing the nutritional value of its cereals, all the other makers launched similar campaigns. What does this suggest about the breakfast cereal market?
Correct answer D. Oligopolistic
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Oligopolists are colluding to set price and output so as to maximise total industry profit. If they are forced to stop colluding, what happens to price and total output?
Correct answer C. Decrease; increase
What type of trade arrangement is NAFTA?
Correct answer D. Free trade area
What is a group of firms that jointly decides on prices and output called?
Correct answer C. A cartel
In an oligopoly with a dominant price leader, what level of output is produced?
Correct answer C. Between the competitive level and what a monopolist would choose in the same industry
What is the European Monetary Union an example of?
Correct answer C. Monetary union
What is a major weakness of the kinked demand curve model of oligopoly?
Correct answer D. It fails to explain how a firm arrived at its initial price and output decision
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What is a regional trading bloc called in which members remove internal trade barriers but keep their own existing barriers against non-members?
Correct answer B. Free trade area
Which of the following statements about contestable markets is false?
Correct answer D. For a market to be contestable, the product must be produced with a labour-intensive technology.
Which level of economic integration best describes the US economy?
Correct answer C. Monetary union
Mexican tomatoes face a 20 percent tariff in the United States and a 25 percent tariff in Canada, while the US and Canada trade freely with each other. What kind of arrangement do the two countries belong to?
Correct answer D. Free-trade area
In the short run, which costs vary with output?
Correct answer D. Both total variable cost and total cost