All Free Economics MCQs with Answers

• A. Europe
• B. Asia
• C. North America
• D. Sub-Saharan Africa

Explanation: Sub-Saharan Africa is commonly described in development studies as a large region comprising about 44 countries.

• A. dates
• B. oil
• C. uranium
• D. coal

Explanation: Although much of the Middle East is desert or semi-arid and has limited natural resources, it possesses exceptionally large petroleum…

• A. Africa
• B. The Middle East
• C. Europe
• D. The Pacific Rim

Explanation: Europe has displayed the most advanced regional cooperation through institutions such as the European Union, including common policies and…

• A. the United Nations is contacted
• B. the Chief State makes all final decisions
• C. both general and administrative personnel are involved
• D. Henry Kissinger is contacted

Explanation: A foreign-policy crisis requires the involvement of both general policy-making officials and administrative personnel who implement…

• A. isolationism
• B. interventionism
• C. containment
• D. internationalism

Explanation: The Truman Doctrine, Marshall Plan, and NATO were major instruments of the Cold War strategy of containment, aimed at limiting the spread…

• A. administrative
• B. crisis
• C. general
• D. threatening

Explanation: The Cuban Missile Crisis was a crisis-policy situation because Kennedy had to respond urgently to a direct threat involving Soviet…

• A. Egypt
• B. Israel
• C. Palestine
• D. Lebanon

Explanation: Israel has repeatedly faced security threats concerning the survival and territorial existence of the state, especially in conflicts with…

• A. morality
• B. rights of humanity
• C. exercise of power
• D. what is best for the people of a nation

Explanation: Hans Morgenthau’s realist approach treats national interest and foreign policy primarily in terms of power and the ability to influence…

• A. size and resources
• B. location and population
• C. political ideology and wealth
• D. specific combinations of attributes

Explanation: Modern national power does not rest on one attribute such as territory or population; it comes from a combination of economic, military…

• A. crisis decisions
• B. administrative foreign policy
• C. legislative decisions
• D. constructive foreign policy

Explanation: Routine foreign-policy decisions made by government departments and bureaucratic agencies are classified as administrative foreign policy.

• A. Realism
• B. Neo-realism
• C. Globalism
• D. Pluralism

Explanation: Globalism examines international relations in a worldwide context and gives particular importance to economic interdependence, trade and…

• A. propaganda
• B. journalism
• C. foreign policy
• D. diplomacy

Explanation: Propaganda is the deliberate spread of ideas or doctrines through persuasion, often to influence public opinion.

• A. foreign policy
• B. diplomacy
• C. power in the context of international relations
• D. international law

Explanation: In international relations, power is the capacity of a nation to use its resources to influence or alter the behaviour of other nations.

• A. 11%
• B. 5%
• C. 8%
• D. 3%

Explanation: Nominal GNP growth includes the effect of higher prices, so price growth is subtracted to estimate real growth: 8% minus 3% equals…

• A. a reference to a government economist favoring high taxes
• B. a special kind of screw driver that reflects the functioning of the economy
• C. a graphic representation of conflict between full employment and inflation
• D. a deflationary curve

Explanation: The Phillips curve represents an inverse relationship between inflation and unemployment, expressing a short-run policy conflict between…

• A. nouveau riches
• B. generation x-ers
• C. baby boomers
• D. symbolic analysts

Explanation: Symbolic analysts are highly skilled professionals such as engineers, lawyers, investment bankers, executives and entertainers who work…

• A. timing
• B. interpretation
• C. implementation
• D. all of the above

Explanation: Policies can be weakened by delays in timing, differing interpretations, and difficulties in implementation.

• A. spending and taxation
• B. wage regulation
• C. income ceilings
• D. bank regulation

Explanation: Fiscal policy changes aggregate demand through government spending and taxation.

• A. monetarism
• B. Reaganism
• C. the gold standard
• D. cash and carry

Explanation: Monetarism explains demand and economic activity by emphasizing the supply and management of money.

• A. that the masses were being exploited
• B. that the market was inherently unstable
• C. the need for the intervention of the owners of the means of production
• D. that industrial workers were becoming the new bourgeoisie

Explanation: The Keynesian revolution challenged the belief that markets automatically maintain full employment, emphasizing that aggregate demand can…