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Free Agricultural Economics and Extension MCQs with Answers

190 Agricultural Economics and Extension MCQs from Agriculture, each with the correct answer and a written explanation of why it is correct. Free and unlimited, with no account needed.

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190 questions · page 6 of 10

101. The investment of private foreign funds in the economy of a developing nation?

  • A. None of these
  • B. Public investment
  • C. Both a and b
  • D. Private foreign investment

Explanation: Funds supplied by foreign private individuals, firms, or institutions for investment in a developing country are called private foreign…

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Correct answer: Private foreign investment

102. Selling public assets to individuals or private business interests ?

  • A. Publication
  • B. Privatization
  • C. Downsizing
  • D. All

Explanation: Privatization means transferring ownership or control of government assets and enterprises to private individuals or businesses.

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Correct answer: Privatization

103. A line which shows different combinations of two products a consumer can purchase with a specific money income, given the products price?

  • A. Indifference curve
  • B. Lorenz curve
  • C. Budget line
  • D. Say's law

Explanation: A budget line shows the combinations of two goods that a consumer can afford with a fixed income at given prices.

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Correct answer: Budget line

104. Tax levied on production of specific product on quantity of product purchased ?

  • A. Sales tax
  • B. All
  • C. Income tax
  • D. Excise tax

Explanation: An excise tax is imposed on particular goods, often according to the quantity produced or purchased, such as fuel, tobacco, or alcohol.

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Correct answer: Excise tax

105. Private or public debt owed to foreign citizens firms and institutions ?

  • A. External debt
  • B. Internal debt
  • C. Loan
  • D. None

Explanation: Debt owed to foreign citizens, firms, governments, or institutions is external debt because the creditors are outside the country.

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Correct answer: External debt

106. Employment available resources so that the maximum amount of goods and services is produced?

  • A. Large scale production
  • B. Fringe benefits
  • C. Full production
  • D. None

Explanation: Full production means using available resources and employment capacity to produce the maximum possible amount of goods and services.

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Correct answer: Full production

107. The absence of artificial barriers to trade among individuals and firms in different nations ?

  • A. NoneEconomics
  • B. Free economy
  • C. Trade union
  • D. Free trade

Explanation: Free trade means international exchange without artificial restrictions such as tariffs, quotas, or prohibitions.

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Correct answer: Free trade

108. A rise in the general level of prices in an economy___________________?

  • A. Inflation
  • B. Dearnen
  • C. Both
  • D. None

Explanation: Inflation is a sustained rise in the general price level, which reduces the purchasing power of money.

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Correct answer: Inflation

109. A curve showing the distribution of income in an economy___________________?

  • A. Lorenz curve
  • B. Indifference curve
  • C. Income budget line
  • D. Investment damage curve

Explanation: The Lorenz curve displays the actual distribution of income or wealth by comparing cumulative population with cumulative income.

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Correct answer: Lorenz curve

110. A bank which lends to developing nations to help them increase their capital stock and this achieve economic growth ?

  • A. IMF
  • B. Islamic Bank
  • C. None
  • D. Commercial bank

Explanation: The institution normally described here is the World Bank, particularly the International Bank for Reconstruction and Development, which…

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Correct answer: None

111. A legal entry chartered by a state or the federal govt. which is district and separate from the individuals who own it ?

  • A. Co-operative
  • B. Partnership
  • C. None
  • D. Corporation

Explanation: A corporation is a separate legal entity created under state or federal law, so it owns property and bears liabilities independently of…

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Correct answer: Corporation

112. A section in a nation's international balance of payments which records its export and import of goods and services, its net investment income, and its net transfers ?

  • A. Current account
  • B. Fixed account
  • C. Saving account
  • D. Capital account

Explanation: The current account records trade in goods and services together with primary income, such as investment income, and current transfers.

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Correct answer: Current account

113. A type of unemployment caused by insufficient total spending___________________?

  • A. Under employment
  • B. Cyclical unemployment
  • C. Underdevelopment
  • D. None

Explanation: Cyclical unemployment results from inadequate aggregate demand during economic downturns, when firms reduce production and employment.

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Correct answer: Cyclical unemployment

114. A simplified picture of economic reality, an abstract generalization ?

  • A. Economic theory
  • B. Economic principle
  • C. Economic model
  • D. NoneEconomics

Explanation: An economic model is a simplified, abstract representation of economic reality used to explain relationships and make predictions.

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Correct answer: Economic model

115. Cooperation among unification of the economies of different nations is termed as_____________________?

  • A. Economic integration
  • B. Economic Bloc
  • C. Economic union
  • D. none

Explanation: Economic integration is the process by which countries reduce barriers and coordinate or unify aspects of their economies.

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Correct answer: Economic integration

116. An industry in which expansion through the entry of firms decreases the prices, firms in the industry must pay for resources and there fore decreases their production costs ?

  • A. Declining industry
  • B. Decreasing cost industry
  • C. Both
  • D. None

Explanation: A decreasing-cost industry experiences lower production costs as industry output and the number of firms expand, usually because of…

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Correct answer: Decreasing cost industry

117. A decrease in the governmentally defined value of currency ____________________?

  • A. Inflation
  • B. Cheapness
  • C. Devaluation
  • D. All

Explanation: Devaluation is an official reduction in the value of a country's currency against other currencies.

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Correct answer: Devaluation

118. Increases in the price level resulting from an excess of demand over output at the existing price level, caused by an increase in aggregate demand ?

  • A. None
  • B. Stagflation
  • C. Both
  • D. Demand pull inflation

Explanation: Demand-pull inflation occurs when aggregate demand rises beyond the economy's current output capacity, allowing sellers to raise prices.

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Correct answer: Demand pull inflation

119. Failure to achieve full production is called ?

  • A. Unemployment
  • B. Under employment
  • C. Unplanned
  • D. None

Explanation: Underemployment means available resources, especially labour, are not being used to their full productive capacity.

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Correct answer: Under employment

120. The sacrifice of some or all one economic goal, good, or services to achieve some other goal, good or service is called__________________?

  • A. Trade block
  • B. Trade union
  • C. Trade offs
  • D. All

Explanation: A trade-off is the sacrifice of one objective, good, or service to obtain more of another because resources are limited.

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Correct answer: Trade offs
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