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
9051. Involuntary unemployment exists if workers ?
comments icon0

A. will not work because the hours are anti-social

B. Are not prepared to move house to get the job

C. would work at the going wage but cant find jobs

D. will not work at the offered wage

9052. Land will be allocated between competing uses so that ?
comments icon0
A. the equilibrium rental rate equilibrium total demand with supply

B. housing gets priority

C. industry gets priority

D. farming gets priority

9053. Economists have hypothesized that the widening gap between the wages of unskilled workers and skilled workers may be due to ?
comments icon0

A. decrease in the demand for unskilled workers are more poorly educated

B. increase in the number of unskilled workers available due to immigration into the UK.

C. increase in the number of unskilled workers available because workers are more poorly educated

D. decrease in the demand for unskilled workers because of increases in technology and increases in international trade
9054. Which of the following is true regarding the earning of attractive versus unattractive workers ?
comments icon0

A. Attractive people tend to earn less because attractive people are viewed as shallow and more self-absorbed and therefore, as less productive

B. Attractive people tend to earn less because attractive people usually have less human capital

C. Attractive people tend to earn more because attractive people usually have greater human capital

D. Attractive people tend to earn more because they may actually have a larger value of marginal product
9055. Top footballers tend to earn more than lecturers because ?
comments icon0

A. lecturers are lazy

B. the labor markets are imperfect

C. top footballers are relatively scarce in relation to lecturers

D. footballers give more entertainment

9056. The difference between gross investment and net investment is ?
comments icon0

A. dwellings

B. inventories

C. productive investment

D. depreciation of the existing capital stock
9057. The opportunity cost of acquiring education is ?
comments icon0
A. the earnings foregone

B. course fees

C. course fees and living expenses

D. Course fees living expenses and textbook

9058. Which of the following professionals is most likely to be able to generate the income of a superstar ?
comments icon0
A. the best writer

B. the best professor

C. the best medical doctor

D. The best accountant

E. All of these answers participate in markets that could generate a superstar

9059. According to the signaling view of the education ?
comments icon0

A. can make any worker into a superstar

B. only helps firms sort workers into high ability and low-ability workers

C. increases human capital and the wages of workers

D. reduces the wage gap between high-skill and low-skill workers.

9060. Which of the following could result in women being paid less than men ?
comments icon0

A. women obtaining less human capital because they dont plan to work continuously to the age of retirement

B. all of these answers

C. women preferring to work in pleasant clean safe work places

D. customers preferring to deal with men

E. Women entering and leaving the labour force to care for children

9061. the cost of using capital services is the ?
comments icon0

A. wage rate of capital

B. rental rate for capital

C. marginal capital cost

D. interest charges

9062. A wage differential among groups may not by itself be evidence of discrimination in the labour market because different groups have ?
comments icon0

A. different levels of job experience

B. different preferences for the type of work they are willing to do

C. different levels of education

D. all of these answers are correct
9063. In a competitive market, which of the following is least, likely to be the source of a persistent discriminatory wage differential ?
comments icon0

A. the government

B. the employer

C. the customer

D. All of these answers could be source of a persistent discriminatory wage differential

9064. Which of the following explanations of wage differentials is not likely to be true ?
comments icon0

A. Men have more human capital than women

B. None of the above

C. Men have more job experience than women

D. Employers in competitive markets are bigots
9065. In the short run, the supply of capital is ________ and in the long run will depend on _______?
comments icon0
A. fixed, rental rate of capital

B. variable, interest rates

C. variable, technology

D. fixed, expectations

9066. The participation rate in the labour force is affected by ?
comments icon0

A. lower non-labour income

B. all of the above

C. lower fixed costs of working

D. changes in tastes between leisure and work

E. higher real wages

9067. Which of the following is likely to generate a compensating differential ?
comments icon0
A. One employee is willing to work the nightshift while another is not.

B. One employee is more attractive than another

C. All of these answers generated

D. One employee works harder than another

E. One employee is more educated than another

9068. In the West Women and non-whites on average receive lower incomes than white men because ?
comments icon0
A. all of the above

B. firms are reluctant to invest in training

C. educational disadvantage

D. they tend to work in relatively unskilled jobs

9069. Human capital can be described as ?
comments icon0

A. the tools used by workers to enhance productivity

B. the stock of expertise accumulated by a worker

C. a person inherited ability

D. education

9070. Skilled labor is relatively scarce because ?
comments icon0
A. it is costly to acquire human capital

B. too few student places in higher education

C. teachers salaries are too low

D. there are too few teachers

9071. Different capital intensity in different industries is mainly explained by _______ and ________?
comments icon0
A. technology, the ease of factor substitution

B. patents, skill shortages

C. government grants, international competition

D. wage differentials, skill levels

9072. Competitive markets tend to ?
comments icon0
A. reduce labour market discrimination because non-discrimination firms will employ cheaper labour earn more profits and drive discriminating firms out of the market

B. increase labour market discrimination because bigoted employers can charge any price they want in a competitive market to cover the cost of their discrimination

C. have no impact on labour market discrimination

D. Increase labor market discrimination because some workers can charge more for their services than other workers in a competitive market

9073. The downward sloping marginal physical product of labor is the firms ?
comments icon0

A. ginal revenue product of labor

B. marginal cost of labour

C. Supply of labor

D. Short-run demand curve for labor
9074. The value of an asset depends upon ?
comments icon0

A. its depreciation

B. its scrap values

C. the cost of loans

D. the present value of the future stream of income it can earn
9075. Unions achieve a higher wage differential the more _____ and the more ______?
comments icon0

A. the economy is growing, people prefer leisure

B. inelastic the demand for labour, they can restrict the supply of labour

C. members they have, aggressive they behave

D. the productivity is growing vacancies exist

9076. According to the human capital view of education ?
comments icon0
A. increases human capital and the wages of workers

B. only helps firms sort workers into high ability and low-ability workers.

C. can make any worker into a superstar

D. has no impact on the human capital of workers?

9077. In order for a market to support superstars it must have which of the following characteristics ?
comments icon0

A. It must be involved in professional athletics

B. Every customer must want the good supplied by the best producer and the technology must exist for the best producer to supply every customer at low cost

C. Every customer must be willing to pay an enormous amount for the product and the product must be a necessity

D. Every customer must be indifferent to the price they pay, and the seller must be a competitor in the market for the product

9078. It is not considered discrimination when an employer offers different opportunities to individuals that differ only by them ?
comments icon0

A. sex

B. race

C. age

D. productivity
9079. If two jobs require the same amount of skills and experience the job that pays the most is most likely to be the one that is ?
comments icon0

A. fun

B. safe

C. unpleasant

D. all these answers

E. easy

9080. The most important source of wage differentials are ?
comments icon0

A. unionization

B. regional variation

C. relative danger

D. skills
9081. The functional distribution of income shows how national income is divided between ?
comments icon0

A. the population

B. the working population

C. the factors of production

D. employees

9082. The substitution effect of a rise in the price of labour will ____ the quantity of labour and the output, effect will ____ it
comments icon0

A. increase; increase

B. increase; reduce

C. reduce; increase

D. reduce; reduce
9083. Central banks in LDCs generally have less effect on expenditure and output than in LDCs because of ?
comments icon0

A. the relative insensitivity of investment and employment to monetary policies

B. #NAME?

C. a poorly developed securities market

D. an externally dependent banking system

9084. _______ states that as real GNP per capita rises, people demand relatively more social goods and relatively fewer private goods?
comments icon0

A. incomes policy

B. Moral hazard

C. Wagners law

D. Fiscal policy

9085. Which of the following are costs of inflation ?
comments icon0

A. inflation distorts business behavior especially investment behavior

B. Inflation imposes a tax on the holders of money

C. inflation weakens the creation of credit and capital markets

D. #NAME?

9086. Under financial repression ?
comments icon0

A. #NAME?

B. banks face pressure for loans to those with political connections

C. banks depend on foreign banks to set interest rates

D. banks engage in non-price rationing of loans

9087. Which of the following is NOT true ?
comments icon0

A. several LDCs have used value-added taxes to raise a substantial fraction of revenues

B. import duties can restrict luxury goods consumption

C. Taxes on international trade are the major source of tax revenue for low-income countries with poor administrative capacity

D. Cascade tax a form of progressive tax, is dominant in DCs
9088. By using fiscal policy, i (e) varying ______ and/or _____ governments achieve goals for output and employment growth as well as price stability?
comments icon0
A. tax rates, government spending

B. interest rates, financial liberalization

C. interest rates, tax rates

D. demand pull inflation tax elasticity

9089. When the financial system lacks the capability of making judgement about investment opportunities due to asymmetric information leading to potentially bad credit risks lending is subject to ?
comments icon0

A. social goods

B. adverse selection

C. moral hazard

D. hyperinflation

9090. The property tax wealth tax inheritance tax and income taxes such as persona and corporate taxes are ?
comments icon0

A. indirect taxes

B. inelastic

C. direct taxes

D. value-added tax

9091. Monetary policy effects the _________ and __________?
comments icon0

A. stock price, minimum wage

B. taxes, exchange rate

C. money supply, interest rate

D. reserve, unemployment

9092. With _______ prices rise in the first sector, remain the same in the second and increase overall?
comments icon0

A. import substitution

B. inflationary expectations

C. ratchet inflation

D. demand pull inflation

9093. Inflation is measured by the ?
comments icon0

A. #NAME?

B. depreciation

C. consumer price index (CPI)

D. GDP deflator

9094. fiscal incentives to attract businesses from abroad include ?
comments icon0

A. lower tax rates for reinvested business profits

B. accelerated depreciation

C. #NAME?

D. tax holidays

9095. If people with higher incomes pay a higher percentage of income in taxes, the income tax structure is ?
comments icon0

A. value added taxes (VAT)

B. excise taxes

C. progressive

D. regressive

9096. The Bank of England and the Federal Reserve ?
comments icon0

A. loan money to most of LDC commercial banks

B. are central banks

C. use fiscal policy to influence GDP

D. are branches of commercial banks

9097. During Stagflation ?
comments icon0

A. an increase in aggregate spending will eliminate the recession

B. #NAME?

C. the central bank decease money supply to reduce inflation

D. a decrease in aggregate spending will reduce inflation

9098. Demand pull inflation result from ?
comments icon0

A. demand for government spending on public goods goes due to lack of financial backup through tax collection

B. a shortage of demand for goods and services in excess of supply during depression

C. consumer business and government demand for goods and services in excess of an economys capacity to produce

D. demand for public goods is greater than demand for consumer goods

9099. An increase in the budget surplus ?
comments icon0
A. Shift the supply of loanable funds to the right and reduces the real interest rate.

B. Shifts the demand for loanable funds to the right and increases the real interest rate.

C. Shifts the demand for loanable funds to the left and reduces the real interest rate

D. Shifts the supply of loanable funds to the left and increase the real interest rate

9100. An increase in the budget deficit will ?
comments icon0

A. lower the real interest rate and decrease the quantity of loanable funds demanded for investment

B. raise the real interest rate and increase the quantity of loandable funds demanded for investment

C. raise the real interest rate and decrease the quantity of loanable funds demanded for investment

D. lower the real interest rate and increase the quantity of loaable funds demanded for investment