Economics MCQ Questions Answers

1. Quantitative easing is ____________.

2. The acquisition of a firm in the same industry as the bidder is called a _____ acquisition.

3. When a country experiences high economic growth, a major cause usually is often _______

4. Variables expressed in terms of money are called ______ variables.

5. U.s. national debt ______ when the federal government's ______.

6. Total weight gain during the first trimester should be approximately _____ lbs.

7. Total output refers to the goods and services made by _____ producers in a country.

8. Total expenditure in the united states is equal to consumption expenditure plus investment ______.

9. Stagflation occurs when inflation ________ and gdp ________.

10. Saving is the amount of income that is _____ in net taxes or spent on _____ goods and services.

11. A business ________________ occurs when, for practical purposes, one firm purchases another.

12. _____________ has occurred if a government-owned firm becomes privately owned.

13. A government budget surplus _______ the real interest rate, decreases ______.

14. A government budget deficit ______ the real interest rate because ______.

15. A financial asset is considered ________ if it can be sold in a secondary market.

16. A distinguishing characteristic of public transfer payments is that they _____.

17. A depreciation of the u.s. dollar most likely would _______

18. A decrease in the marginal propensity to import _______, everything else remaining the same.

19. A bank is legally required to hold a fraction of its ________ as ________.

20. Real gdp in 2001 was ______ .

21. Compensation of workers must be ___________ billion.

22. "if policy is anticipated, there is no short-run" is a property of the__________ school of thought.

23. ________ the quantity of money in the united states.

24. ________ of unemployment during ________ make it easier for workers to ________ wages.

25. A recessionary gap occurs when ________ so that real gdp is ________ potential gdp.

26. Diminishing returns to capital imply that poor countries tend to grow ____ than richer countries

27. An expected increase in the prices of consumer goods in the near future will _____.

28. A period of stagflation can be the result of ________

29. Decreasing taxes can stimulate the economy by ________.

30. Decreasing funding for space exploration will shift the _____ curve to the _____.

31. The value of the cpi in the base period ______.

32. The government uses its resources to provide different public goods. this shows that _____ .

33. A cartel differs from a monopoly in that _____.

34. A labor union seeks to __________________ between employers and workers.

35. A constraint that protects a firm from _____ is called a barrier to entry.

36. _____________ of economic activity has been evolving since the birth of economics in 1776.

37. The quantity of life is ____________ a complete a measure of happiness.

38. Aggregate demand is more likely to _________________ than aggregate supply in the short run.

39. Aggregate demand is about _________ and aggregate supply is about _________.

40. Aggregate demand ________ if the expected inflation rate increases because ________.

41. A demand schedule gives a schedule of ________ quantities demanded per time dimension at ________.

42. ______________ is the time that an individual cannot control totally by himself or herself.

43. The _________________ means that a higher price level leads to lower real wealth.

44. ____ publishes a list of recommended used cars in various price ranges each april.

45. ____ and ____ are often paid as part of one's house payment and held in an escrow account.

46. Unanticipated deflation does all of the following except _______.

47. The unemployment rate that is consistent with full employment is known as __________________.

48. Durable goods and non-durable goods comprise approximately ________ of the supply side of the gdp.

49. If the u.s. central bank increases the money supply at a higher rate ________

50. If the simple money multiplier is 5, the required reserve ratio must be equal to _____.

51. If real gdp declines in a given year, nominal gdp _____.

52. If inflation is anticipated, __________.

53. Crowding out refers to a decline in ________ as a result of an increase in ________.

54. Changes in _____ cannot shift the aggregate demand curve.

55. An open market operation is ____________.

56. An increase in the interest rate __________ purchases of consumer __________.

57. An increase in income taxes _______, everything else remaining the same.

58. An increase in __________ will cause savings to increase.

59. Adaptive expectations are a property of the__________ school of thought.

60. _____ are elements of fiscal policy that automatically change in value as national income changes.

61. The two basic forms of planned economies are _______ and _______.

62. Most economists assume that firms behave _____ and that their objective is _____.

63. Taken together imports plus exports accounted for about _____ percent of gdp in 2006.

64. Unemployment benefits, welfare, and some subsidies automatically ___________ in a recession.

65. The output of the private sector provides about _____ percent of the production of the nation.

66. The net of investment income from abroad and investment payments to foreigners is called the _____.

67. The median income of _____________ of nations in the world is less than $10,000 per year.

68. The largest component of a country's gdp is _____.

69. The _________ notes inflation at the wholesale level.

70. Many countries, including the united states, measure output by calculating the _____.

71. The federal reserve banks are ________ institutions since they are owned by the ________.

72. The statement i always buy that brand is an example of the _____ component of attitude.

73. Motivation that is driven by raw emotions is called ________.

74. Consumers who refuse to sacrifice style, but achieve it on a budget are called ________.

75. Depository institutions provide four benefits, which are ______.

76. Gdp tends to overstate economic well-being because it takes into account _____.

77. Gains from specialization and mutually beneficial trade _________ wealth or well-being.

78. Free trade is ________, because it ________ the size of the pie available to the economy.

79. Fiscal policy refers to changes in tax levels and government _____.

80. Fiscal policy attempts to achieve all of the following objectives except ______.

81. Firms purchase inputs for production from households in the _______.

82. Firms are institutions that organise _____ of goods and services.

83. Firms ______ production, and real gdp ______.

84. Classical economics assumes that businesses do not hold ____________

85. Changing interest rates is an example of _____ policy.

86. Consumption expenditures in the u.s. usually account for approximately __________ percent of gdp.

87. ____ printers tend to smudge on inexpensive paper, and they are slower than laser printers.

88. The modern macroeconomic tools used by the government are _____ policy and _____ policy.

89. This development ______ economic growth in china because ______.

90. Suppose you buy clothes at mimi's clothing shop. your spending is mimi's _____.

91. We would say that apples are an inferior good if the ___________ for apples is __________ .

92. Used automobiles have a _______________ demand.

93. Two new companies start to produce hdtvs. this results in _____ in the _____ hdtvs.

94. The whole auction process is managed by a(n) _____.

95. The united states uses ______ to prevent businesses from engaging in anticompetitive practices.

96. The united states has approximately ___________ credit card holders.

97. The united kingdom receives approximately _______ percent of total american exports.

98. The most significant difference between a partnership and a sole proprietor is the ________.

99. The merger of a brewery with an aluminum can producer is an example of a __________ merger.

100. Supporters of minimum wage say that it provides _____ for people with low-paying jobs.