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We offering you a MCQs relating to Economics for study for UGC NET SET examination. We will publishing a series of MCQ relating to Economics’ MCQs. following are the mcq’s of Economics with answers.
Note:- Answers are in Red bold format
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MCQ 1 to 5
1. Which statement about the factors of production is correct?
A. Capital includes man-made machines that do not keep their original value.#
B. Enterprise is a natural factor of production that cannot be taught
C. Labor is an immobile factor that does not change its skill level
D. Land is only agricultural fields that cannot be improved by human effort
2. Which type of economy is found in the United States?
A. Market Economy.#
B. Command Economy
C. Traditional Economy
D. Non of the above
3. to accuse a public official of misconduct in office
A. Mandate
B. Impeach.#
C. Executive Order
D. Executive Privilege
4. Because we face scarcity, we must make
A. studies
B. money
C. profit
D. choices.#
5.What was the proportion of employment in industries in 2011-12?
A. 10%
B. 24.3%.#
C. 27%
D. 49%
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MCQ 6 to 10
6.How has technology changed the way people do business?
A. enabled faster communication around the world.#
B. cut-off direct communication between corporations
C. more postal service is required
D. censored import information
7.What does it mean when an economy has a commodity monetary standard?
A. The Economy’s money is backed by something of tangible value such as gold or silver.#
B. The economy’s money is not backed by something of tangible value such as gold or silver
C. The economy’s money is backed by alien invaders
D. The economy’s money is backed by the federal reserve’s hidden stash of gold located at Fort Knox, Kentucky
8. Inflation in excess of 500 percent per year is called
A. demand-pull inflation
B. cost-push inflation
C. stagflation
D. hyperinflation.#
9.Which is an example of investing in human capital?
A. cash
B. factories
C. education.#
D. highways
10.type of elasticity when a price adjustment causes a large quantity change
A. elastic.#
B. inelastic
C. unit elastic
D.Non of the above
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MCQ 11 to 15
11. What are some public services that are supported/paid for with money earned from taxes (select three)?
A. public school.#
B. fire department
C. police department
D. getting a hamburger at McDonald’s
12. is calculated by output per worker per period of time.
A. Productivity.#
B. Production
13. What are resources?
A. Different sources used in the economy
B. The use of things to meet the problem of scarcity
C. Inputs used in the production of goods and services.#
D. Technological progress
14. Inflation is to be combated the RBIA. Raise in CRR and lower SLR
A. Raise in CRR and lower SLR
B. Lower CRR and raise SLR
C. Raise both CRR and SLR.#
D. none of these
15. If the price for Coke goes up significantly, the demand for Pepsi will likely do what?
A. Will increase or go up.#
B. Will decrease or go down
C. Stay the same
D. None of the above
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MCQ 16 to 20
16. In a market economy, prices of goods and services are kept fixed
A. True
B. False.#
17. What is the primary way banks make their profit?
A. interest paid to depositors
B. stock dividends
C. customer surcharges
D. interest paid on bank-issued loans.#
18. In a command economy, who usually owns the farms and factories?
A. Individuals
B. Corporations
C. The government.#
D. Farm and factory workers
19.The price for margarine (a butter substitute) goes down. The demand curve for butter will do what?
A. Shift to the right
B. Shift to the left.#
C. Stay the same
D. None of the above
20. The taxing and spending policies of the president and Congress are known as
A. revenue policy
B. fiscal policy.#
C. monetary policy
D. recession policy
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MCQ 21 to 25
21. Which type of economic system has the highest level of government control?
A. traditional economy
B. market economy
C. command economy.#
D. mixed economy
22. A farmer is a because they grow food to sell.
A. producer.#
B. consumer
23. What kind of tax is the federal income tax?
A. progressive tax.#
B. flat tax
C. regressive tax
D. sin tax
24. Specialization:
A. leads to greater self-sufficiency
B. can lead to an increase in overall production.#
C. allows workers to develop skills by working on a large number of tasks
D. is always the result of an inefficient use of resources
25. Fast food restaurants are an example of
A. differentiation.#
B. monopolistic competition
C. pure / perfect competition
D. monopolies
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MCQ 26 to 30
26. A government ruled by religious leaders who claim God’s authority
A. Autocracy
B. Unitary.#
C. Oligarchy
D. Theocracy
27. refers to a worth that can be expressed in dollars and cents
A. Paradox
B. Value.#
C. Tax
D. Revenue
28. The distribution of income received in the form of rent, wages, or interest is the main factor that determines
A. how goods and services are produced
B. where goods and services are consumed
C. who produces goods and services
D. who consumes goods and services.#
29. State and local ballot referendums allow American citizens to
A. create government economic policies.#
B. enact government spending proposals
C. support the government goal of economic freedom
D. support the government goal of financial security
30. If decreasing returns to scale are present, then if all inputs are increased by 10% then:
A. output will also decrease by 10%
B. output will increase by 10%
C. output will increase by less than 10%.#
D. output will increase by more than 10%
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MCQ 31 to 35
31. When a country is importing more goods than it is exporting, this occurs
A. trade deficit.#
B. globalization
C. embargo
D. industrialization
32. Any money that you earn or receive from someone
A. Borrower
B. Saver
C. Income.#
D. Taxes
33. In between job is the reason a person is unemployed
A. Traditional unemployment
B. Cyclical unemployment
C. Structural unemployment
D. Frictional unemployment.#
34. If working out for three hours gives gains, should you work out another two?
A. Scarcity Forces Tradeoffs
B. Thinking at the Margin.#
C. Future Consequences Count
D. Markets Coordinate Trade
35. How does advertising affect the demand for a product?
A. Advertising make the demand go up.#
B. Advertising makes the demand go down
C. Advertising doesn’t change the demand
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MCQ 36 to 40
36. The area in Michigan where the majority of fruits are grown is called the food belt.
A. True
B. False it’s the fruit belt.#
37. Institution that helps channel funds from savers to borrowers
A. financial intermediary.#
B. financial system
C. financial assets
D. all of these
38. In a the chief executive is selected by the people.
A. Presidential Democracy.#
B. Absolute Monarchy
C. Parliamentary Democracy
D. Constitutional Monarchy
39. Communism and socialism are usually found in what type of economic system?
A. traditional
B. pure market
C. mixed
D. command.#
40. During the COVID 19 Pandemic we are all experiencing now, and the information campaign from the Center for Disease Control highlighting that bacteria and other organisms cause and spread disease, will the demand curve for soap be more elastic or more inelastic?
A. More elastic
B. More inelastic.#
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MCQ 41 to 45
41. Who, among the following, is most likely to benefit during a period of rapid inflation?
A. Borrowers.#
B. Pensioners
C. Savers
D. Workers in strong unions
42. coal
A. Primary.#
B. Secondary
C. Tertiary
D. Quaternary
43. Which of the following is NOT a textile?
A. Pants
B. Blanket
C. Shirt
D. Wrapper.#
44. In the early years after independence, India had a large
A. rate of economic growth
B. trade deficit.#
C. trade surplus
D. number of oil reserves
45. What is the primary function of the Barrier Island?
A. They protect the beaches from erosion.#
B. They are frequent targets of hurricanes
C. They protect wild horses from extinction
D. They serve as well-stocked hunting preserves
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MCQ 46 to 50
46. What is agricultural influence?
A. factories giving off pollution
B. Lots of coal leads to factories making steel
C. Farmers milk cows
D. Good soil leads to Ohio farmers growing soybeans.#
47. Devaluation is
A. Fall in the value of domestic currency in terms of foreign currency as a deliberate step adopted by the govt. under fixed exchange rate system.#
B. Rise in the value of domestic currency in terms of foreign currency as a deliberate step adopted by the govt. under fixed exchange rate system
C. Fall in the value of domestic currency in terms of foreign currency as a deliberate step adopted by the govt. under FLEXIBLE exchange rate system
48. According to our text , pg 13, there are factors that can affect supply .
A. 1
B. 2
C. 3
D. 4.#
49.All personal needs, such as health care and education, are provided by the government.
A. Traditional Economy
B. Free enterprise (Capitalist) Economy
C. Communist (Command) Economy
D. Socialist Economy.
50. Real items, such as cars, watches, and clothing; things people make
A. Goods#
B. Services
C. Needs
D. Borrower
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