Economics is very interesting subject for many students and a must for those who are pursuing the subject ofÂ businessÂ and finance. The principal of Â economicsÂ are applied in our day to day life also. So in all most every exam, the generalÂ knowledgeÂ paperÂ certainlyÂ contains a few question from world of business and finance Â in general. Even when one appears on group discussion or interview, the general awareness of the candidate is checked from point of view of his interest in the field of current dayÂ businessÂ environment . Here are freash set of ten multiple choice questions on the subject of Â economics.
10 Multiple Choice Questions on Economics
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Question 1Which of the following would cause consumption to rise?
the GDP Deflator rises a greater proportion of the population is between age 20 and 30 transitory income increases income is taken from poor people and given to rich people
Question 2Which of the following statements is/ are true about the classical quantity theory of money ?
the equation of exchange is MV= PQ the classical economists assumed that V would rise when real inter-est rates rise the classical economists concluded that increases in the money sup-ply cause increases in real GDP and nothing else all of the above
Question 3A large increase in oil prices, such as the ones occurring in 1973 and 1979, will cause
inflation and expansion recession and disinflation inflation and recession expansion and deflation
Question 4Which of the following would cause the aggregate demand curve to shift to the right?
an increase in purchases by the federal government an increase in real interest rates and appreciation of the American dollar a decrease in the money supply
Question 5Assume that the market for the stock of Microsoft begins in equilibrium. Then, both buyers and sellers expect that the new Linux (a competitor of Microsoft Windows) will be a large success, reduing Microsoft sales. When the new equilibrium is reached,
the price and quanity of the stock will both have risen the price and quantity of the stock will both have fallen the quantity of the stock will fall and the price will rise the quantity of the stock will fall but the effect on price cannot be determined the price of the stock will fall but the effect on quantity cannot be determined
Question 6Assume that the market for computers begins in equilibrium. Then, there is a decrease in a price of Pentium processors used in the production of computers. When the new equilibrium is reached,
the price and quantity of computers will both have risen the price and quantity of computers will both have fallen the price of computers will have risen and the quantity will have fallen the price of computers will have fallen and the quantity will have risen
Question 7If the nominal interest rate on a checking account is 2% and the inflation rate is 3% this year, the real interest rate is
5% 2% 2/3% 1% 3%
Question 8Which of the following would cause the demand curve for automobiles to shift to the left?
an increase in the price of the automobiles an increase in the interest rate paid to borrow money to pay for the automobile an increase in buyers' incomes an increase in the cost of production of automobiles
Question 9Which of the following is a 'loser' from unexpected inflation?
workers with COLA s the middle class people who own Treasury Bills people who own homes and have fixed-rate mortgages
Question 10Suppose it is announced that industry analysts are predicting that de-creased oil supplies from Iraq will cause gasoline prices to rise, begin-ning next month. In current week , the announcement would
shift the supply of gasoline right shift the demand for gasoline right shift the demand for gasoline left have no effect on the demand or supply of gasolineOnce you are finished, click the button below. Any items you have not completed will be marked incorrect.There are 10 questions to complete.