Economics MCQs

Correct answer C. It stays the same

Correct answer C. It will increase the quantity of saving if the substitution effect outweighs the income effect

Correct answer B. Real GDP per person

Correct answer D. It has the potential to grow relatively quickly due to the "catch-up effect"

Correct answer A. A reduction in current consumption

Correct answer A. A non-renewable natural resource

Correct answer B. An ever-increasing population is constrained only by the food supply, resulting in chronic famines

Correct answer B. A farmer discovers that it is better to plant in the spring rather than in the autumn

Correct answer A. EDF of France buys shares in Scottish & Southern Energy of the UK, and Scottish & Southern Energy uses the proceeds to build a new hydro-electric power station in Scotland

Correct answer A. Once the plant starts producing cars, UK GDP will rise more than UK GNP

Correct answer B. Naila pays her university tuition fees

Correct answer A. Nationalise major industries

Correct answer B. They save and invest an unusually high percentage of their GDP

Correct answer B. It may be harder for it to grow quickly because of diminishing returns to capital

Correct answer D. Labour

Correct answer D. Inverted U-shaped

Correct answer A. Doubling all of the inputs doubles output

Correct answer D. Rural cultivators

Correct answer D. All of these answers

Correct answer C. Sum of previous gross investment minus depreciation