Questions

Q:

The __________ exchange rate is the price of one unit of foreign currency in terms of domestic currency.

A) Artificial B) Nominal
C) Fixed D) Real
 
Answer & Explanation Answer: B) Nominal

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Q:

In perfect competition _____.

A) Products can be similar or different B) Producer can control price by controlling production
C) Demand curve is perfectly elastic D) All firms make economic profit in the long run
 
Answer & Explanation Answer: C) Demand curve is perfectly elastic

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Q:

The demand for a normal good decreases with ________ in the consumer's income.

A) increase B) decrease
C) constant D) double
 
Answer & Explanation Answer: B) decrease

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Q:

Calculate a country's GDP if for the year, consumer spending is $400 million, government spending is $150 million, investment by businesses is $80 million, exports are $35 million and imports are $40 million.

A) $625 million B) $465 million
C) $475 million D) $635 million
 
Answer & Explanation Answer: A) $625 million

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Q:

A minimum wage _____.

A) is the price floor below which workers may not sell their labor B) is set at a price below the equilibrium wage
C) creates a price ceiling below which the wage cannot legally go D) decreases unemployment
 
Answer & Explanation Answer: A) is the price floor below which workers may not sell their labor

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Q:

Which of the below options is called a laughing gas?

A) N2O B) CO2
C) H2O D) SO2
 
Answer & Explanation Answer: A) N2O

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Q:

The major ingredient of sweetened soft drink is

A) Carbonated water B) Hydrochloric acid
C) Phosphoric acid D) Caffeine
 
Answer & Explanation Answer: A) Carbonated water

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Q:

The area of a circle is 38.5 cm2. Find its circumference (in cm).

A) 1848 B) 1716
C) 1621 D) 1587
 
Answer & Explanation Answer: A) 1848

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