All Free Economics MCQs with Answers

• A. closed
• B. multinational
• C. restricted
• D. monopolistic

Explanation: A multinational corporation operates across national borders through branches, subsidiaries or other business activities.

• A. supplies the real needs of people
• B. creates artificial demands
• C. helps the wealthy get richer
• D. none of the above

Explanation: Advertising can influence preferences and persuade consumers to want products beyond their basic needs, creating artificial or induced…

• A. corporation
• B. government
• C. commune
• D. union

Explanation: Industrial capitalism required large-scale finance, production and ownership, making the corporation the key economic unit.

• A. hard work and thrift
• B. predestination
• C. turning the other cheek
• D. buying indulgences

Explanation: According to the Protestant Ethic thesis, capitalism was encouraged by values such as disciplined hard work, saving and thrift.

• A. is quite strong
• B. is diluted by private and state monopolies
• C. does not exist
• D. has been replaced by planning

Explanation: Modern market economies contain competition, but it is often weakened by private monopolies, oligopolies and state-owned monopolies.

• A. inducement
• B. direction
• C. command
• D. tradition

Explanation: A market system coordinates production through inducements such as prices, profits and consumer demand.

• A. have lack of control
• B. have no sense of accomplishment
• C. are an anonymous group
• D. all of the above

Explanation: Highly specialized work can reduce workers’ control, weaken their sense of accomplishment and make them feel like anonymous parts of a…

• A. using existing technology
• B. obtaining the highest output in the least amount of time
• C. ignoring the time factor
• D. making do with as few workers as possible

Explanation: Economic efficiency means producing the greatest possible output from given resources, often expressed as obtaining maximum output with…

• A. Tradition
• B. Command
• C. Free Market
• D. BOTH market and command

Explanation: Western industrial economies generally combine market mechanisms with government direction, regulation and public provision.

• A. how to get rid of it
• B. what to produce how produce it and for whom to produce it
• C. there is no problem it is divided equally
• D. how to keep it away from enemies

Explanation: Even when a society has a surplus, it must decide what to produce, how to produce it and for whom to distribute it.

• A. ability to accumulate vast amounts of capital in a short time
• B. capacity for protracted periods of employment
• C. ability to profit from the labor of its employees
• D. necessity to exhibit the latest technology

Explanation: A corporation can pool the savings of many investors and raise very large amounts of capital, often more quickly and on a larger scale…

• A. restricted guarded and private
• B. esthetic visible tangible
• C. communal private public
• D. ambiguous hermetic contraceptive

Explanation: The standard broad forms of property ownership are communal, private, and public.

• A. raw materials
• B. impetus to upward mobility
• C. factors of production
• D. external devices

Explanation: Land, labour, capital, and entrepreneurship are the four traditional factors of production because they provide the resources and…

• A. time place and quantity of production
• B. assessment collection and counting of taxes
• C. measurement of land water and minerals
• D. production distribution and consumption of goods and services

Explanation: Every economy must decide what and how much to produce, how to distribute output, and how goods and services will be consumed.

• A. Fertile land
• B. Wheat and com
• C. Food shelter and protective coverings
• D. Sufficient males to mate with all the females

Explanation: Food, shelter, and clothing or other protective coverings are limited relative to human needs in every society, making them scarce…

• A. correlational
• B. descriptive
• C. inferential
• D. longitudinal

Explanation: Inferential statistics use sample data to estimate, test or generalize conclusions about a wider population.

• A. It is the American way
• B. Greed makes the world go around
• C. keeping up with the Joneses leads to success
• D. None of the above

Explanation: Private property is generally defended because secure ownership creates incentives to use resources efficiently, invest and maintain them…

• A. simplified world views
• B. complex explanations of the world
• C. rejecting action
• D. none of the above

Explanation: An ideology is a simplified worldview that helps people interpret society and guide their actions.

• A. a set of ideas values and attitudes
• B. a testable theory
• C. always based on religion
• D. none of the above

Explanation: An ideology combines ideas, values, and attitudes into a framework for understanding society and politics.

• A. today's deviant is tomorrow's leader
• B. deviant acts invariably point to outdated rules
• C. deviance is a fad
• D. some actions initially defined as deviant eventually become generally accepted

Explanation: Some behaviour first condemned as deviant later becomes accepted as social standards change.