Economics Practice MCQ Page 24

Multiple Choice questions for Economics in the sets of 10 each on one page with questions and answers. All sets are useful in the preparation of subject tests for employment or admission.
Question: 1624   An accumulation of unsold goods is
  1. counted in GDP as investment .
  2. counted in GDP as consumption .
  3. counted in GDP, but not as consumption or investment.
  4. not counted in GDP.
  5. counted in GDP,only if they are durable goods.
Question: 1625   Gross domestic income equals gross domestic product
  1. only when supply equals demand.
  2. only when there is no government .
  3. only when there is no government or foreign trade .
  4. only when depreciation is ignored.
  5. always.
Question: 1626   The value added of a firms is the total value of its.
  1. output.
  2. output less its payments to factors of production.
  3. output less its payments for intermediate goods.
  4. intermediate goods.
  5. labor input.
Question: 1628   All of the following are part of the value added of the steel industry except
  1. payments to steel workers .
  2. depreciation of steel mills.
  3. profits of steel producers.
  4. purchases of iron ore.
  5. rent on land used for steel production.
Question: 1629   Investment in this economy is
  1. $23 billion.
  2. $16 billion.
  3. $13 billion .
  4. $10 billion .
  5. impossible to determine from the data given.
Question: 1639   Which of the following is would not be included in the market basket of goods used calculate the consumer price index?
  1. Bread.
  2. Steel.
  3. Housing .
  4. Gasoline.
  5. Automobiles.
Question: 1640   Which of the following would be most likely to gain from a higher-than -anticipated inflation rate?
  1. A retired worker.
  2. A government employee.
  3. A debtor.
  4. A creditor.
  5. A recipient of government transfer payments.
Question: 1649   National income in this economy is
  1. $100 billion.
  2. $91 billion.
  3. $87 billion.
  4. $80 billion.
  5. impossible to determined from the data given.
Question: 1650   Personal income in this economy is
  1. $100 billion.
  2. $87 billion.
  3. $80 billion.
  4. $73 billion.
  5. impossible to determined from the data given.
Question: 1651   During the year to which the data refer,the value of the capital stock in this economy
  1. grew by $13 billion.
  2. grew by $11 billion.`
  3. grew by $4 billion.
  4. fell by $9 billion.
  5. is impossible to determined from the data given.
Question: 1653   Which of the following is part of the difference between personal income personal disposable income?
  1. Personal income taxes.
  2. Transfer payments.
  3. Depreciation.
  4. Corporate profits.
  5. Saving.
Question: 1654   In an economy with no depreciation .investment is equal to
  1. private saving .
  2. private savingplus the government defict.
  3. private saving plus the government surplus.
  4. private saving plus the government defict plus foreign -trade surplus.
  5. private saving plus the government surplus plus the foreign -trade United States.