economics Mcqs
1. the national economy2. profit maximizing under perfect competition and monopoly3. application of economics4. the aggregate demand aggregate supply model5. surplus6. money interest rates and output7. average and total cost8. stabilization adjustment reform and privatization9. risks and diversification efficient market hypothesis10. the phillips curve11. supply and demand12. capital formation investment choice information technology and technical progress13. aggregate supply unemployment and inflation14. elasticity15. comparative gdp16. roots of modern macroeconomics17. production factors18. poverty malnutrition and income inequality19. trade regulations and industrial policies20. monetary union21. exchange rate systems and currency crises22. economic development in historical perspective23. exchange rate determination24. monopoly competition25. the balance of payments26. inflation productivity27. macroeconomic issues and analysis28. employment migration and urbanization29. macroeconomic policy tools30. supply side policies31. exchange rate adjustments and the balance of32. miscellaneous33. taxation34. trade policies for the developing nations35. markets efficiency and the public interest36. the external debt and financial crises37. budget deficits and the trade balance38. alternative theories of the firm39. public goods40. the meaning and measurement of economic development41. characteristics and institutions of developing countries42. agriculture irrigation system of pakistan43. education health and human capital44. economic problems of developing countries45. theories of economic development46. basic of economics47. consumer theory vs real consumers48. applied microeconomics49. long term economic growth50. externality internality51. fiscal and monetary policy52. prices wages taxes53. balance of payments aid and foreign investment54. international factor movements and multinational corporations55. entrepreneurship organization and innovation56. the international economy and globalization57. population and development58. non tariff trade barriers59. foundations of modern trade theory60. global economic development61. market62. rural poverty and agricultural transformation63. regional trading arrangements64. foreign exchange65. introduction to economics66. world economy miscellaneous67. sources of comparative advantage68. natural resources and the environment toward sustainable development69. monopoly70. asymmetric information71. income inequality72. labour market73. tariffs74. development planning and policy making the state and the market75. oligopoly76. industrial development77. costs supply and perfect competition78. human capital79. monetary fiscal and incomes policy and inflation80. stocks
1. According to Emerson: Want is a growing giant whom the coat of Have was never large enough to cover. According to economists, Want exceeds Have because:
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A. human beings are inherently insecure

B. people are greedy

C. productive resources are limited

D. people are irrational

2. The economics the central problem is ?
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A. Money

B. Consumption

C. Allocation

D. Scarcity
3. According to economists, economic self-interest:
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A. is a reality that underlies economic behavior

B. is more characteristic of men than of women

C. is usually self-defeating

D. has the same meaning as selfishness

4. In a free market system, the amount of goods and services that any one household gets depends upon its ?
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A. wealth

B. wage and interest income

C. income

D. income and wealth
5. For economists, the word utility means:
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A. versatility and flexibility

B. rationality

C. pleasure and satisfaction

D. purposefulness

6. Suppose you find Rs 20. If you choose to use the Rs 20 to go to a football match your opportunity cost of going to the game is ?
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A. nothing because you found the money.

B. None of these

C. Rs 20 (because you could have used the Rs 20 to buy other things) plus the value of your time spent at the game plus the cost of the dinner you purchased at the game.

D. Rs20 (because you found the money Rs 20 to buy other things) plus the value of your time spent at the game.

E. Rs20 (because you could have used the Rs20 to buy other ghings)

7. A market can accurately be described as_________________?
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A. a place to sell things

B. a place to buy things

C. the process by which prices adjust to reconcile the allocation of resources

D. a place where buyers and sellers meet

8. Normative economics Forms ________ based on ________?
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A. opinions personal facts

B. positive statements values

C. positive statements, facts

D. opinions facts

9. A stock that sells at a high price because of public confidence in its long record of steady earnings is called ?
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A. All of these

B. Blue chip

C. Blue Chipper

D. An extremely valuable asset or property

10. Which one of the following is a normative statement ?
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A. Inflation is rising

B. The proportion of peoples income paid in taxes is higher under this government than under the previous one.

C. The richest 10 per cent of the population has had a bigger percentage increase in incomes over the past 10 years than the poorest 10 percent

D. Inequality in the distribution of income is a more serious problem than unemployment
11. Foreign trade ?
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A. None of these

B. allows a country to have a greater variety of products at a lower cost than if it tried to produce everything to home.

C. increase the scarcity of resources.

D. makes a country more equitable.

12. A supply curve is directly affected by ?
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A. technology

B. government regulation

C. input costs

D. all of the above
13. Resources in an economy ?
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A. Are always found

B. Can never decease

C. Always increase over time

D. Are limited at any moment in time
14. Who is called the father of Economics?
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A. J.P Kense

B. Mankew

C. David Ricordo

D. Adam Smith
15. On a graph, a positive linear relationship___________________?
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A. moves up to the left

B. moves down to the left

C. moves up to the right

D. moves down to the right

16. If you income during one year is Rs10,000 and the following year it is Rs12,000 then it has grown by ________________?
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A. 20%

B. 16%

C. 2%

D. 12%

17. The free market involves ?
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A. All trade via barter

B. Market forces of supply and demand

C. The free provision of products

D. The Subsidizing of products by the government

18. Macroeconomics is the study of ?
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A. individual building blocks in the economy

B. the relationship between different sectors on the economy

C. the economy as a whole

D. household purchase decisions

19. A real value can be derived from a nominal value by ?
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A. adjusting for data collection errors

B. adjusting or changes in prices

C. adjusting for changes over time

D. adjusting for population changes

20. ________ and ___________ do not directly affect the demand curve ?
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A. the costs of production bank opening hours

B. the price of related goods preferences

C. consumer incomes, tastes

D. the price of related goods consumer income

21. Time series data show information ?
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A. about different variables over different places

B. about the same point in time over different places

C. about different points in time over the same variable

D. about different points in time over different places

22. For Economics category a first Nobel prize was given in____________?
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A. 1968

B. 1901

C. 1969

D. 945

23. In a free market?
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A. government interferes

B. government intervenes

C. government plan production

D. Prices adjust to reconcile scarcity and desires
24. The study of inflation is part of ?
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A. macroeconomics.

B. descriptive economics

C. microeconomics

D. normative economics

25. Account is format banking, brokerage or business relationship established to provide for regular services. dealings and other financial transactions. Which of the following phenomenon(s) are also referred by term, Account ?
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A. Money deposited for checking savings or breakage use

B. All of these

C. A precise list or enumeration of financial transactions

D. A customer having business or credit relationship with a firm

26. The total demand for goods and services in an economy is known as_____________?
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A. national demand.

B. aggregate demand

C. economy-wide demand

D. gross national product.

27. Which of the following is a normative statement in economics ?
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A. Higher taxes lead to less desire to work

B. More spending by the government reduces poverty

C. The government should concentrate on reducing unemployment

D. The Pakistans economy is growing fast relative to other SAARC members

28. A straight-line diagram can be drawn knowing the ________ and ________?
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A. intercept and slope

B. scale and slope

C. vertical axis and horizontal axis

D. intercept and scale

29. Aggregate supply is the total amount ?
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A. of products produced by a given industry.

B. Produced by the government.

C. of labor supplied by all households.

D. of goods and services produced in an economy.
30. When economists say that people act rationally in their self interest, they mean that individuals _______?
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A. look for and pursue opportunities to increase their utility

B. are unpredictable

C. generally disregard the interests of others

D. are mainly creatures of habit

31. Which of the following involves a trade off ?
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A. Going to university

B. All of these answers involve trade-offs

C. Taking a nap

D. Watching a football game on Saturday afternoon

32. If marginal benefit is greater than marginal cost, a rational choice involves ?
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A. no more of the activity.

B. more or less, depending on the benefits of other activities

C. more of the activity

D. less of the activity

33. The sacrifice involved when you choose a particular course of action is called the ?
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A. Producer cost

B. Opportunity cost

C. Consumer cost

D. Alternative

34. The public sector includes ?
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A. Government ownership of assets

B. Market forces of supply and demand

C. Investors owning companies

D. All trade via barter
35. A demand curve can shift because changing ?
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A. incomes

B. prices of related goods

C. tastes

D. all of the above
36. A recession is ?
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A. a period during which aggregate output declines.

B. a period of very rapidly declining prices.

C. a period of declining prices.

D. a period of declining unemployment

37. Workers in Western Europe enjoy a high standard of living because ?
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A. Workers in the united states are highly productive

B. none of these answers.

C. the countries of Western Europe have set high minimum wage rates.

D. The countries of Western Europe have protected their industries from foreign corporation

E. Unions in Western Europe keep the wage high

38. When we know the quantity of a product that buyers wish to purchase at each possible price we know_____________?
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A. Excess supply

B. Excess demand

C. Demand

D. Supply

39. In a command (planned) economy ?
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A. The price mechanism acts as an incentive

B. Individual firms make decisions for themselves about what to produce and how to produce it

C. The public sector is large

D. Resources are allocated by market forces
40. When entering a building, Asim diverts his path to go through an open door rather than make the physical effort to open the closed door that is directly in his path. This is an example of:
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A. marginal benefit-marginal cost analysis

B. a lazy person

C. irrational behavior

D. programmed learning

41. Inflation is___________________?
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A. a decrease in the overall price level.

B. a decrease in the overall level of economics activity

C. an increase in the overall level of economic activity.

D. an increase in the overall price level.
42. Microeconomics is not concerned with the behavior of ?
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A. industries.

B. aggregate demand

C. Consumers

D. firms

43. The retail price index is used to__________________?
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A. None of the above

B. construct price lists

C. measure changes in the cost of living

D. compare shop prices

44. Unemployment means that ?
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A. there is excess demand in the labour market

B. at the going wage rate, there are people who want to work but cannot find work.

C. people are not willing to work at the going wage rate.

D. there are some people who will not work at the going wage rate.

45. The opportunity cost of a good is______________?
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A. the quantity of other goods sacrificed to get another unit of that good

B. the expenditure on the good

C. the loss of interest in using savings

D. the time lost in finding it

46. In the mixed economy________________?
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A. economics s is solved by government departments

B. economic decisions are made by the private sector and free market

C. economic allocation is achieved by the invisible hand

D. economics problems are solved by the government and market
47. In a planned or command economy, all the economics decisions are taken by the ?
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A. Workers

B. Consumers

C. government

D. voters

48. What is called the difference in the money value between exports and imports during the specific period of time ?
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A. Terms of trade

B. Balance of payment

C. Balance of trade

D. Balance sheet

49. The circular flow of goods and incomes shows the relationship between?
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A. goods and services.

B. income and money

C. Wages and salaries.

D. ms and households

50. A rational person does not act unless ?
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A. The action produces marginal benefits that exceed marginal costs.

B. The action makes money for the person.

C. the action is ethical

D. The action produces marginal costs that exceed marginal benefits.