Economics Practice MCQ Page 25

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: 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.
Question: 1656   Personal consumption expenditures are currently about what percentage of United States GDP?
  1. 20 percent.
  2. 45 percent.
  3. 65 percent.
  4. 75 percent.
  5. 90 percent.
Question: 1657   The largest income share of GDP is
  1. compensation of employees.
  2. proprietor's income .
  3. undistributed corporate profits.
  4. depreciation.
  5. indirect taxes.
Question: 1658   If real GDP is a large number than nominal GDP, then
  1. prices are higher today than in the base year.
  2. the GDP deflator is greater than one .
  3. the GDP is greater than 100.
  4. prices are lower today than in the base year.
  5. the economy is producing less today than in the base year.
Question: 1660   If you hire a gardener to mow your lawn rather than doing it yourself,
  1. GDP does not change.
  2. GDP decreases.
  3. GDP increases.
  4. GDP increases , unless the gardener does not report the income.
  5. it is impossible to determine what hapPens to GDP.
Question: 1661   Which one of the following income follows would be part of GDP but not part of GNP?
  1. The income of a homemaker .
  2. The profits of a Japanese0-owned bank on its U.S. operations.
  3. The price paid for intermediate goods.
  4. Income earned in Canada by a U.S.consultant.
  5. Income earned by a U.S. firms on goods produced for export.
Question: 1662   The most common way of controlling the money supply is
  1. change in the required-reserve ratio.
  2. changes in the discount rate .
  3. moral suasion .
  4. open-market operations.
  5. selective credit controls.
Question: 1664   If the aggregate supply curve is vertical ,then a 10 percent increase in the money supply leads to
  1. a 10 percent increase in prices.
  2. an increase in prices of less than 10 percent.
  3. an increase in prices of less than 10 percent.
  4. an increase in both prices and output.
  5. a 10 percent increase in output.
Question: 1665   Which of the following is not part of monetary policy?
  1. Affecting interest rates by changing the monetary base.
  2. Changing the discount rate.
  3. Selling bonds to increase government spending .
  4. Changing reserve requirements.
  5. Affecting the money supply by the monetary base.
Question: 1666   When the Federal Reserve purchases a $10,000 government bond,the money supply
  1. increases by $10,000.
  2. increases by more than $10,000.
  3. decreases by less than $10,000.
  4. decreases by $10,000.
  5. decreases by more than $10,000.
Question: 1667   The two important lags in the conduct monetary policy are the recognition and the
  1. effectiveness lag.
  2. operation lag.
  3. base lag.
  4. political lag.