Assignmentstore is an one stop solution for all your assignment needs with 100% unique solutions from high qualified Instructors.

Get HelpNow





    Economics MCQ Questions & Answers

    Question 1

    Which of the following would be classified as a personal consumption expenditure?

    Answer

    All of the following.
    Your purchase of a newly constructed house
    Your purchase of a preowned house.
    Your purchase of one share of Microsoft stock.
    Your purchase of this economics course.

    1 points

    Question 2

    Increased production, but not increased inflation, will result in higher:

    Answer

    nominal GDP.
    money GDP.
    real GDP.
    current dollar GDP.

    1 points

    Question 3

    GDP includes:

    Answer

    the negative attributes from erosion and deforested landscape.
    all quality improvements resulting from higher quality goods replacing inferior goods.
    the cleaning-up expenses associated with pollution.
    the value of leisure time.
    the illegal activities related to the underground economy.

    1 points

    Question 4

    The GDP chain price index is designed to adjust nominal GDP for changes in:

    Answer

    the level of transfer payments.
    the quality of goods over time.
    the costs of economic bads such as pollution and crime.
    the general level of prices over time.

    1 points

    Question 5

    The sum of payments made to resource owners for the use of their resources is:

    Answer

    Gross Domestic Product.
    Net Domestic Product.
    National Income.
    Personal Income.
    Disposable personal income.

    1 points

    Question 6

    Which of the following would count as an investment expenditure in the GDP expenditures approach?

    Answer

    General Motors hires 10 electrical engineers.
    Boeing purchases a new metal stretching machine used to produce airplane wings.
    Ms. Quantum buys 100 shares of Microsoft stock.
    A large corporation spends $10,000 per month on long-distance phone charges.

    1 points

    Question 7

    Exhibit 11-5 GDP data (billions of dollars)

    Personal consumption expenditures$5,207
    Interest425
    Corporate profits735
    Government spending1,406
    Depreciation830
    Rental income146
    Gross private domestic investment1,116
    Compensation of employees4,426
    Exports870
    Imports965
    Indirect business taxes553
    Proprietors’ income520
    Personal taxes886
    Social Security taxes432
    Transfer payments376

    In Exhibit 11-5, personal income (PI) is:

    Answer

    $6,254 billion.
    $6,495 billion.
    $6,013 billion.
    $7,082 billion.
    $7,637 billion.

    1 points

    Question 8

    National income:

    Answer

    represents total wages and salaries in an economy.
    equals GDP minus indirect business taxes.
    equals GDP minus depreciation.
    equals C + I + G + (X – M).
    is the value of existing capital stock used up in making goods.

    1 points

    Question 9

    Which of the following is true?

    Answer

    GDP is a “flow” concept.
    The purchase prices of both intermediate goods and final goods are included in GDP.
    GDP measures economic welfare.
    GDP is a measure of changes in the general level of prices.

    1 points

    Question 10

    Which one of the following statements is true in the four-sector circular model?

    Answer

    Money flows from government to households for taxes.
    Money flows from foreign economies to households for exports.
    Money flows from government to firms for goods and services.
    Money flows from firms to foreign economies for exports.
    Money flows from households to foreign economies for resources.

    Download it for answers.

     

    Economics 1 Answers