Economics MCQs

A. Worsen
B. Improve
C. Stay the same
D. Increase with inflation

A. The amount of tax paid increase with income
B. The marginal rate of tax decrease with more income
C. The average rate of tax falls as income increase
D. The average rate of tax is constant as income increases

A. Discourage consumption of positive externalities
B. Discourage consumption of public goods
C. Discourage consumption of merit goods
D. Discourage consumption of negative externalities

A. the benefit that accrues to the buyer in a market
B. the cost that accrues to the seller in a market
C. none of these answers
D. the compensation paid to a firm’s external consultants.

A. A social cost curve that is above the supply curve (private cost curve) for a good
B. None of these answers
C. A social value curve that is above the demand curve (private value curve) for good
D. A social value curve that is below the demand curve (private value curve) for a good

A. Gdp decrease rapidly
B. Gdp remains unchanged
C. Gdp decrease slightly
D. Gdp increase

A. The same as it is for fiscal policy
B. Much shorter than it is for fiscal policy
C. Mush longer than it is for fiscal policy
D. Unrelated to central bank action

A. Is not sufficiently stimulating or contracting the economy at any time
B. Is effective
C. Is stimulating or contracting the economy at the wrong times
D. Is desirable

A. Could either increase or decrease
B. Decrease
C. Increase
D. Remain the same, as long as bank hold no excess reserves

A. Bad money drives out good
B. Monetary policy can only be effective if it is a long-term policy
C. Controlling one part of the money supply will merely result in that item becoming less important
D. The money supply must only expand at the rate of growth of real national income