About Central Problems of An Economy

Following are some of the multiple choice questions on the Central Problems of An Economy with answers that will help the students in developing their knowledge.

Central Problems of An Economy MCQ

1. An economy succeeds in producing resources efficiently when

  • Goods and services are produced without resources being wasted.
  • The total number of goods manufactured is high.
  • The resources employe are the best
  • The resources employed for highly valued uses.

2. Why does deforestation cause animals to face extinction?

  • loss of natural habitat
  • spread of toxic plants
  • damage from too much sun
  • flood from increased rain

3. A Theocracy can be found in a

  • Democracy
  • Monarchy
  • Oligarchy
  • All of these

4. A government that recognizes god or a divine being the ultimate authority

  • Junta
  • Monarchy
  • Theocracy
  • Anarchy

5. Full form of MOC

  • Marginal Opportunity Cost
  • Ministry of Coal

6. Which country in Central Asia culturally more close to Persians rather than Turkic nations

  • Uzbekistan
  • Mongolia
  • Tajikistan
  • Kyrgyzstan

7. What human activity hurts the food supply in the region?

  • spend too much time in school
  • switch the crops planted each year
  • manage natural resources poorly
  • grow too many fruits and vegetables

8. How do remittances help the region's economy?

  • Social programs helps educate the poor.
  • Farmers leave rural areas and move to cities.
  • More tourists come to stay at resorts.
  • Migrants send back money from other countries.

9. What does it mean when geographers say that Haiti's standard of living is low?

  • The country has a surplus of food.
  • Residents cannot afford goods and services.
  • Foreign countries give no aid.
  • People have little education and short life spans.

10. OC full form

  • Opportunity Cost
  • Optical Carrier
  • Optical Connection
  • Orange County

11. What is the capital of Turkmenistan?

  • Manama
  • Bishkek
  • Astana
  • Ashgabat

12. What does export mean?

  • Selling goods to another country
  • Planting tree in desert area
  • Buying goods from another country
  • All of above

13. What major problem did Nicaragua face in 1998?

  • destruction by a hurricane
  • debt to foreign nations
  • damage by an earthquake
  • eruptions from a volcano

14. What do you mean by Marginal Opportunity Cost ?

  • It is the ratio between the loss of output and gain of output
  • It refers to the total loss of output
  • It is the ratio between the loss of input and gain of input
  • Both B and C

15. Economic problems arises due to

  • Limited wants
  • Scare means
  • Alternative uses
  • Both B and C

16. What do you mean by Opportunity cost?

  • The accounting cost minus the marginal benefit.
  • The accounting cost minus the marginal cost
  • The highest-valued alternative forgone.
  • Both A & B

17. What are types of technique of production?

  • Labor Intensive Technique
  • Capital Intensive Technique
  • Both A and B
  • Other

18. What causes economic problems?

  • Unlimited Wants
  • Unlimited resources
  • Limited or Scare means
  • Alternative Uses

19. Which of the following is related to the problem of how to produce?

  • Choice of Technique
  • Factoral distribution of income
  • Choice of product
  • None of these

20. Which is not a central problem of an economy:

  • What to produce?
  • How to maximize the profit
  • How to produce?
  • For whom to produce?

21. What were the biggest problems in building the Panama Canal?

  • floods and high winds
  • earthquakes and volcanoes
  • dictators and civil war
  • mosquitoes and rough terrain

22. What causes earthquakes?

  • the pressure from the rubbing of tectonic plates
  • jumping up and down
  • the sinking of lands
  • too many people

23. Which branch of economic theory is associated with the difficulty of resources allocation

  • Econometrics.
  • Micro-economic theory
  • Macro-economic theory
  • None of the above

24. Fundamental facilities and systems serving a country, city, or area, as transportation and communication systems, power plants, and schools

  • Globalization
  • Infrastructure
  • Industrialization
  • All of these

25. A system of government in which power is divided between a central authority and a number of individual states

  • Federal
  • Unitary
  • Confederate
  • None of These

26. Elected leaders do the day to day work of governing the country: they consider the issues, work to find the solutions, pass laws, and stuff to keep the country going. although citizens have the ultimate power

  • representative democracy
  • direct democracy
  • oligarchy
  • none of these

27. Which country can have a high export materials of wood and timber?

  • Somalia
  • Uzbekistan
  • Sweden
  • Egypt

28. Subsistence farming is

  • animals raised for meat, eggs, milk, fur, leather, and wool
  • crops only for one's own use
  • for sale only
  • None of these

29. Nomadic herding is

  • mainly to produce food for the family and to fulfill the needs
  • timber or wood production
  • crops only for one's own use
  • All of above

30. Capital of Israel

  • Jerusalem
  • Tel-Aviv
  • Tehran
  • Both A & B

31. Countries in Central Asia can't rely on crude oil export because of

  • Climate
  • Political issues
  • Physical geography
  • Low eonomy

32. Main export item of the Middle Eastern countries

  • Fruits and vegetables
  • Clothes
  • Oil
  • Cotton

33. What does Capitalism entail?

  • Free Enterprise
  • Profit Motive
  • Competition
  • All of these

34. How do Governments Make Money?

  • Tax the population
  • Go into business
  • Borrow
  • All of these

35. System of resource allocation, commerce, and trade in which markets coexist with government intervention

  • Free market
  • Mixed Market
  • Command
  • Both A & B

36. An economy in which production, investment, prices, and incomes are determined centrally by a government.

  • Free Market
  • Mixed Market
  • Command
  • None of these

37. Marx believed in

  • Private Ownership of the Means of Production
  • Dictatorship of the Proletariat
  • Religion
  • Profit Theory of Value

38. A system of government in which the legislature selects the executive.

  • Parliamentary System
  • Presidential System

39. Citizens are directly involved in the day to day work of governing the country.

  • Direct Democracy
  • Representative Democracy
  • None of these
  • Oligarchy

40. A political system headed by a dictator that calls for extreme nationalism and racism and no tolerance of opposition

  • Facism
  • Communism
  • Socialism
  • All of These

41. An economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state.

  • Facism
  • Capitalism
  • Communism
  • Socialism

42. An economic system in which prices are determined by unrestricted competition between privately owned businesses.

  • Free Market
  • Command
  • Mixed Market
  • None of these

43. Has a democratic government that limits the monarchs control

  • Traditional Monarchy
  • Constitutional Monarchy

44. It either has a king, queen, emperor, or empress. its passed down to heirs

  • monarchy
  • dictator
  • oligarchy
  • none of these

45. A government in which a few people such as a dominant clan or clique control

  • autocracy
  • democracy
  • oligarchy
  • none of these

46. The country of Scranton has a population of 3 million, is an island surrounded by water, and has a confederate government with sovereignty

  • This is a State
  • This is not a State

47. People who are allowed to vote in an election because they have reached the age of suffrage

  • Electorate
  • Diplomacy
  • Globalization
  • Colonialism

48. The term refers to nations where major social problems occur often, like famine or hunger, diseases, and low incomes

  • Developing Nation
  • Emerging Nation
  • Colonialism
  • Industrialization

49. The ability to settle problems between nations without using force

  • Colonialism
  • Diplomacy
  • Political Parties
  • Electorate

50. What is one way the rainforest can be preserved, while still allowing people to enjoy its wonders?

  • Ecotourism
  • Zoology
  • Deforestation
  • Depopulation

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