Free Macroeconomics MCQs with Answers

• A. Full employment
• B. High and equitably distributed income
• C. Reasonable price stability
• D. Low prime interest rate

Explanation: Full employment, fair income distribution and price stability are standard socioeconomic objectives.

• A. primary sector
• B. secondary sector
• C. tertiary sector
• D. quaternary sector

Explanation: The tertiary sector provides services such as trade, transport, banking, education and healthcare, and it employs most workers in advanced…

• A. government controlling parts of the economy for the common good
• B. revolutionary change
• C. abolition of private property
• D. totalitarian government and dictatorship of the proletariat

Explanation: Both socialism and communism assign the state a major role in directing economic resources for collective welfare.

• A. dealignment
• B. realignment
• C. alignment
• D. retrenchment

Explanation: Dealignment is a transitional weakening of established party loyalties in which voters become less attached to existing parties and the…

• A. a failure in raised expectations
• B. the oppressive role of the Communist Party
• C. the failure of the Soviet economy to provide for consumer goods
• D. all of the above

Explanation: The Soviet collapse reflected several connected failures: unmet or rising public expectations, political oppression by the Communist…

• A. the people respect the government
• B. much the government interferes in the economy
• C. profits are made
• D. easy it is become rich

Explanation: Economic systems are chiefly distinguished by the extent and method of government involvement in production, ownership, and allocation.

• A. abolition of private property
• B. military expansionism
• C. the creation of a new ruling class
• D. intense nationalism

Explanation: In Marxist theory, communism aims to eliminate private ownership of the means of production and replace it with common ownership.

• A. the ideology is static
• B. the ideology changes to suit conditions
• C. it has not led to dictatorship
• D. it promises to give more power to the masses

Explanation: Communist movements appealed to many developing countries by promising to transfer political and economic power to workers and ordinary…

• A. idealism
• B. dialectic materialism
• C. an absence of materialism
• D. a cyclical theory

Explanation: Marx interpreted historical change through dialectical materialism, which explains social development through conflicts between material…

• A. is tolerated by religious ideologies
• B. is incorporated in the ideology of democracy
• C. underlies fascism
• D. has been borrowed from the natural sciences

Explanation: Fascism accepts hierarchy, authority, and unequal social roles, rejecting the idea of fundamental political and social equality.

• A. industrial societies
• B. agricultural societies
• C. pastoral societies
• D. horticultural societies

Explanation: Industrial societies develop differentiated institutions, such as separate economic, political, educational, and religious structures.

• A. competition
• B. cooperation
• C. conflict
• D. all of the above

Explanation: The Middle East situation is commonly cited as an example of conflict because opposing groups or states compete over power, territory and…

• A. husband
• B. president
• C. dog owner
• D. jogger

Explanation: A master status is the social position that most strongly shapes how a person is identified by others. For George W.

• A. economics
• B. anthropology
• C. sociology
• D. psychology

Explanation: Classical, neoclassical, monetarist, and Keynesian are major schools of economic thought, especially concerned with markets, money…

• A. an equality of trade position
• B. a favorable balance of trade
• C. a more open market
• D. a belief system

Explanation: Restricting imports can reduce expenditure on foreign goods and support a surplus or more favourable balance of trade.

• A. granted independence as soon as possible
• B. Considered an economic burden for the colonial power
• C. encouraged to develop their own industries
• D. acquired as markets and sources of raw materials

Explanation: Mercantilism viewed colonies as instruments of national economic power, supplying raw materials and serving as controlled markets for the…

• A. an expansion of China's colonial empire
• B. an increase in trade with the West
• C. a return to a strict command economy
• D. the success of the commune system

Explanation: Deng Xiaoping’s reforms introduced market-oriented policies, special economic zones and greater openness to foreign investment and trade.

• A. demand of world markets for such crops
• B. lack of modern agricultural technology
• C. inadequate supply of water and other natural resources
• D. peasant ownership of most farmlands

Explanation: Central American cash-crop farming is largely shaped by international demand for products such as bananas, coffee and sugar.

• A. China's trade deficit with the United States was very high
• B. The United States refused to place quotas on Chinese goods
• C. The United States imported more from China than it exported to China
• D. China lowered tariffs on goods imported from the United States

Explanation: The United States has generally imported more goods from China than it exported there, creating a large US trade deficit and contributing…

• A. The Japanese government has place limits on Japanese exports
• B. Japanese industries spend very little on the research and development of new products
• C. The Japanese government and Japanese businesses have cooperated with each other
• D. Japanese citizens save less of their incomes than the citizens of other industrialized nation do

Explanation: Japan’s postwar growth was supported by close cooperation among government agencies, banks and businesses in directing investment and…