Application Of Economics MCQs

Option A: None of these answers

Option B: Disagree because they have different scientific judgments

Option C: really don’t disagree at all. It just appears that they disagree

Option D: disagree because they have different values

Correct Answer: Disagree because they have different scientific judgments ✔

Option A: the impact of oil prices on car production

Option B: The impact of money on inflation

Option C: The impact of technology on economics growth

Option D: The impact of the deficit on saving

Correct Answer: the impact of oil prices on car production ✔

Option A: Macroeconomic

Option B: Microeconomics

Option C: statements of description that can be tested

Option D: Statements of prescription that involve value judgments.

Correct Answer: statements of description that can be tested ✔

Option A: Large government deficits cause an economy to grow more slowly

Option B: People work harder if the wage is higher

Option C: The unemployment rate should be lower

Option D: Printing too much money causes inflation

Correct Answer: The unemployment rate should be lower ✔

Option A: an advance in technology

Option B: an increase in the labor force

Option C: an increase in the capital stock

Option D: a reduction in unemployment

Correct Answer: a reduction in unemployment ✔

Option A: The study of very large industries is a topic within macroeconomics

Option B: Macroeconomics is concerned with economy-wide phenomena

Option C: Microeconomics is a building block for macroeconomics

Option D: Microeconomics and macroeconomics cannot be entirely separated

Correct Answer: The study of very large industries is a topic within macroeconomics ✔

Option A: really don’t disagree at all It just appears that they disagree.

Option B: disagree because they have different values.

Option C: none of these answers.

Option D: disagree because they have different scientific judgments.

Correct Answer: disagree because they have different values. ✔

Option A: A reduction in unemployment benefits will reduce the unemployment benefits will reduce the unemployment rate.

Option B: The rate of inflation should be reduced because it robs the elderly of their savings.

Option C: The unemployment rate should be reduced because unemployment robs individuals of their dignity.

Option D: The state should increase subsidies to universities because the future of our country depends on education.

Correct Answer: A reduction in unemployment benefits will reduce the unemployment benefits will reduce the unemployment rate. ✔

Option A: a shift in the production possibilities frontier outward.

Option B: a movement from inside the curve toward the curve.

Option C: a shift in the production possibilities frontier inward

Option D: a movement along a production possibilities frontier toward capital goods.

Correct Answer: a shift in the production possibilities frontier outward. ✔

Option A: inefficient

Option B: normative

Option C: unattainable

Option D: efficient

Correct Answer: efficient ✔

Option A: labor

Option B: land

Option C: money

Option D: capital

Correct Answer: money ✔

Option A: A lawyer employed by Renault addressing the impact of air bags on passenger safety.

Option B: An economist permanently employed at a leading university analyzing the impact of bank regulations on lending to small businesses

Option C: An economist employed by the Trades union congress doing research on the impact of trade policy on workers’ wages

Option D: A radio talk show host collecting data from listeners on how capital markets respond to taxation

Correct Answer: An economist permanently employed at a leading university analyzing the impact of bank regulations on lending to small businesses ✔

Option A: To address the impact to taxes on income distribution an economist assumes that everyone earns the same income.

Option B: To address the impact of money growth on inflation, an economist assumes that money is strictly coins.

Option C: To model the benefits of trade. an economist assumes that there are two people and two goods

Option D: To estimate the speed at which a beach ball falls, a physicist assumes that if falls in a vacuum.

Correct Answer: To model the benefits of trade. an economist assumes that there are two people and two goods ✔

Option A: Usually made of wood and plastic

Option B: built with assumptions.

Option C: useless if they are simple.

Option D: created to duplicate reality.

Correct Answer: built with assumptions. ✔

Option A: If Susan works for BAe Systems and receives a salary payment, the transaction takes place in the market for good and services.

Option B: If BAe Systems sells a military aircraft, the transaction takes place in the market for factors for production

Option C: None of these

Option D: The factors of production are owned by households

Correct Answer: The factors of production are owned by households ✔

Option A: the scientist be objective

Option B: The scientific use precision equipment.

Option C: only correct theories are tested

Option D: only theories are tested.

Correct Answer: the scientist be objective ✔