Economics MCQs Archives

31. A graph showing all the combinations of capital and labor that can used to produce a given amount of output is?

A. an indifference curves.

B. an isoquant.

C. an isocost line

D. a production functions

✅ The correct answer is option B.

32. According to Emerson: “Want is a growing giant whom the coat of Have was never large enough to cover.” According to economists, “Want” exceeds “Have” because:

A. People are greedy

B. Productive resources are limited

C. Human beings are inherently insecure

D. People are irrational

✅ The correct answer is option B.

33. What is underwriter?

A. To assume financial responsibility for grantee against failure

B. To sign so as to assume liability in case of specified losses

C. To guarantee the purchase or to agree to buy the unsold part of stock at fixed time and price

D. All of them

✅ The correct answer is option D.

34. What is stated by Keynesian economics theory by British economist John Maynard?

A. A free market is necessary for economic growth and stability

B. Regulation is necessary for economic growth and stability

C. Active government intervention is necessary to ensure economic growth and stability

D. Government intervention is not necessary to ensure economic growth and stability

✅ The correct answer is option C.

35. In Economics, the word “utility” means?

A. Versatility and flexibility

B. Rationality

C. Pleasure and satisfaction

D. Purposefulness

✅ The correct answer is option C.

36. Economic development?

A. Is the same as economic growth

B. Means improvement in lifestyle

C. Exists when there is equal distribution of income

D. All of the above

✅ The correct answer is option B.

37. Term the interchange of commodities across political frontiers without restriction such as tariffs, quotas, or foreign exchange controls ?

A. Open trade

B. Free trade

C. Open sky trade

D. Easy trade

✅ The correct answer is option B.

38. Which side of the market is more likely to lobby government for a price floor?

A. The buyers

B. Neither buyers nor sellers desire a price floor.

C. The sellers

D. Both buyers and sellers desire a price floor.

✅ The correct answer is option C.

39. Because supply and demand conditions for primary products are very price inelastic their prices ?

A. Have been steadily rising in recent decades

B. Have been more stable than the prices of manufactured goods

C. Fluctuate about as much as the prices of manufactured goods

D. Tend to be very unstable from year to year

✅ The correct answer is option D.

40. Government borrows in the form of promissory note to repay the bearer after some fixed days from the date of issue. How is called such borrowing ?

A. Bond

B. Treasury bill

C. Term bound

D. Securities

✅ The correct answer is option B.