Economics Mcqs

Suppose a wave of investor and consumer pessimism in the USA causes a reduction in spending If the US federal Reserve (Which has a broader remit than the Bank of England Which is charged only with controlling inflation) chooses to engage in activist stabilization policy it should ?

A. Increase government spending and decrease taxes
B. decrease the money supply
C. decrease government spending and increase taxes
D. decrease interest rates

In the market for real output, the initial effect of an increase in the money supply is to ?

In the market for real output, the initial effect of an increase in the money supply is to ? Read More »

In the market for real output, the initial effect of an increase in the money supply is to ?

A. shift the aggregate supply curve to the right
B. shift the aggregate supply curve to the left
C. shift the aggregate demand curve to the left
D. shift the aggregate demand curve to the right

When supply and demand for money are expressed in a graph with the interest rate on the vertical axis and the quantity of money on the horizontal axis an increase in the price level ?

When supply and demand for money are expressed in a graph with the interest rate on the vertical axis and the quantity of money on the horizontal axis an increase in the price level ? Read More »

When supply and demand for money are expressed in a graph with the interest rate on the vertical axis and the quantity of money on the horizontal axis an increase in the price level ?

A. shifts money demand to the right and increases the interest rate
B. None of these answers
C. shifts money demand to the right and decreases the interest rate
D. shifts money demand to the left and increases the interest rate
E. shifts money demand to the left and decrease the interest rate

Keynes liquidity preference theory of the interest rate suggests that the interest rate is determined by ?

Keynes liquidity preference theory of the interest rate suggests that the interest rate is determined by ? Read More »

Keynes liquidity preference theory of the interest rate suggests that the interest rate is determined by ?

A. aggregate supply and aggregate demand
B. the supply and demand for loanable funds
C. the supply and demand for money
D. the supply and demand for labor

Satellite television subscription and television detection devices are ways in which broadcasting companies address the ________ problem?

Satellite television subscription and television detection devices are ways in which broadcasting companies address the ________ problem? Read More »

Satellite television subscription and television detection devices are ways in which broadcasting companies address the ________ problem?

A. externality
B. market imperfection
C. deadweight burden
D. free rider

A good example of a public good is ?

A good example of a public good is ? Read More »

A good example of a public good is ?

A. public transport
B. the national health service
C. national defence
D. rail transport

Market failure may arise because of ?

Market failure may arise because of ? Read More »

Market failure may arise because of ?

A. imperfect competition
B. taxation
C. externalities
D. missing markets
E. all of the above

If my neighbour burns garden waste causing my house to fill with smoke this is an example of ?

If my neighbour burns garden waste causing my house to fill with smoke this is an example of ? Read More »

If my neighbour burns garden waste causing my house to fill with smoke this is an example of ?

A. a production externality
B. a second-best solution
C. transaction costs
D. a consumption externality

A competitive equilibrium is Pareto-efficient because ?

A competitive equilibrium is Pareto-efficient because ? Read More »

A competitive equilibrium is Pareto-efficient because ?

A. Producers are price takers
B. consumers and producers face the same prices
C. marginal costs and benefits are equal
D. prices equal marginal cost and benefit
E. All of the above