Economy Mcqs

Explore a comprehensive collection of Economy MCQs covering all essential topics including macroeconomics, microeconomics, international trade, fiscal policy, economic theories, and more. Perfect for students, professionals, and exam preparation

In a free market?

A. government intervenes

B. government plan production

C. government interferes

D. Prices adjust to reconcile scarcity and desires

The Phillips curve shows that ?

A. the business cycle has been eliminated

B. an increase in inflation temporarily increases unemployment.

C. inflation and unemployment are unrelated in the short run.

D. a decrease in inflation temporarily increases unemployment.

Workers in Western Europe enjoy a high standard of living because ?

A. the countries of Western Europe have set high minimum wage rates.

B. Unions in Western Europe keep the wage high

C. The countries of Western Europe have protected their industries from foreign corporation

D. Workers in the united states are highly productive

D. none of these answers.

Foreign trade ?

A. increase the scarcity of resources.

B. makes a country more equitable.

C. allows a country to have a greater variety of products at a lower cost than if it tried to produce everything to home.

D. None of these