Economics MCQS

371. When the value of currency appreciates, it means that:
(A) The cost of international trade has increased
B) The cost of international trade has decreased
(C) Lesser goods can be purchased from the International market
(D) None of these

372. A budget Deficit occurs when:
A) When Income is less than expenditures
(B) When loans are less than grants
(C) When earning is less than debt servicing
(D) None of these

373. In economic terms, a “bull” is:
A) The opposite of bear
(B) An investor who expects the price of a security to rise
C) Both A and B
(D) None of these

374. _ is the rate at which the prices of goods and services increase.
A) Inflation
(B) Consumerism
(C) Capitalism
(D) None of these

Answer: (A) Inflation

375. The cobweb model will diverge from one point when the slope of:
A) There is more of a demand curve than a supply curve
(B) Supply curve is more than demand
(C) The demand curve and supply curve are equal.
(D) The supply curve and demand curve are equal.

376. According to Marshal Utility:
A) Can be added
(B) Can be subtracted
(C) Can be multiplied
(D) Can be divided

377. A consumer is in equilibrium when the slope of IC is:
A) Equal to the budget line’s slope
(B) More than the budget line’s slope
(C) More modest than the incline of the budget line
(D) Parallel to the slope of the budget line

378. Engel curves show how commodities’ consumption rate differs at various levels of:
(A) Income
B) Consumption
(C) Price
(D) Production

379. “In revealed preference theory,” a consumer revealed preference for the bundle of:
A) Two goods
(B) A low goods
(C) One good
(D) Many goods

380. The elasticity of demand on the rectangular hyperbola curve:
(A) Increases
(B) Decreases
C) Remains the same
(D) Changes