UNICAL Economics 2010/2011 Past Questions

Practice each question, then open it to see the full details.

The economic growth which relies mainly on the price mechanism for the allocation of scarce resources is known as

A.capitalist economic system
B.command economic system
C.combined economic system
D.traditional economic system

A shift in supply is caused by the following factors except

A.the price of the goods
B.the cost of resources
C.the number of buyers
D.the techniques of production

When firms are privatized

A.they are transferred to individuals
B.they are made more profitable
C.they are owned by the government and managed by individuals
D.their products are sold to the public

Any type of restricted franchise is a violation of the principle of

A.constitutionalism
B.sovereignty
C.the government
D.the retailer

When the demand for a commodity is inelastic, who bears the greater burden of the indirect tax?

A.the producer
B.the government
C.the retailer
D.the consumer

The indicator of the value of money in the market is

A.the general price level
B.effective supply
C.the equilibrium price
D.effective demand

Which of the following is not characteristic of a perfect competition?

A.many sellers and buyers are in the market
B.there is perfect knowledge of the market situation
C.supply and demand are equal
D.there is no discrimination

The price of a commodity is determined by the

A.supplier
B.consumer
C.quantity of goods demanded
D.interaction of demand and supply

In which of the following economic systems is the consumer referred to as “the king”?

A.planned economy
B.mixed economy
C.traditional economy
D.free market economy

As interest rate increases,

A.investment declines
B.it is not certain what happened to investment
C.investment increases
D.investment remains constant