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
51. Trade-offs are required because wants are unlimited, and resources are ?
comments icon0

A. economical

B. Efficient

C. Scarce

D. unlimited

52. Raising taxes and increasing welfare payments ?
comments icon0

A. improves efficiency at the expense of equity.

B. improves equity at the expense of efficiency.

C. reduces market power

D. Proves that there is such a thing as a free lunch

53. Human wants are_______________?
comments icon0

A. Likely to decrease over time

B. Unlimited

C. Always fixed

D. Limited

54. If the diagram of a line shows that lower values on the vertical scale are associated with higher values on the horizontal scale this is an example of ?
comments icon0

A. a scatter diagrams

B. a positive linear relationship

C. a nonlinear relationship

D. a negative linear relationship
55. In economics, the pleasure, happiness, or satisfaction received from a product is called ______?
comments icon0
A. utility

B. status fulfillment

C. rational outcome

D. marginal cost

56. What is called the trade of goods or services without the exchange of money ?
comments icon0

A. Liberal Exchange

B. Barter

C. Bilateral Trade

D. Free exchange

57. Which of the following activities is most likely to produce an externality?
comments icon0

A. A student sits at home and watches T.V

B. A student reads a novel for pleasure

C. A student eats a hamburger in the student union.

D. A student has a party in her room in the student hall of residence.
58. One percentage decrease in unemployment is associated with two percentage points of additional growth in real gdp is called?
comments icon0
A. Okuns Law

B. none of the above

C. Consumer price index

D. classical theory

59. Periods of less than full employment corresponds to _________________ ?
comments icon0

A. points outside the production possibility curve

B. either points inside or outside the production possibility curve.

C. points inside the production possibility curve.

D. points on the production possibility curve

60. Productivity can be increased by ?
comments icon0

A. restricting trade with foreign countries.

B. improving the education of workers

C. raising union wages.

D. raising minimum wages.

61. Data are important in economics because _________ and ____________?
comments icon0

A. they can be used for tables, they can be graphed

B. they can be used in computers governments use them

C. they provide interesting information can be summarized

D. they suggest relationships for explanation, allow testing of hypotheses
62. Which of the following situations describes the greatest market power ?
comments icon0
A. Microsofts impact on the price of desktop operating systems

B. Subarus impact on the price f cars

C. a farmers impact on the price of corn

D. a students impact on college tuition

63. An increase in the price of beef providers information which ?
comments icon0

A. provides no information because prices in a market system are managed by planning boards.

B. tells producers to produce more beef.

C. tells consumers to buy less pork

D. tells consumers to buy more beef.

64. The concept of opportunity cost ?
comments icon0

A. Would be relevant if we eliminated poverty

B. Suggests a major increase in public health care spending means an expansion in other areas will be harder to achieve.

C. is relevant only for a capitalist economy like the United States.

D. Suggests all our wants can be achieved.

65. -7-+47-+45-+-+Since people respond to incentives, we would expect that if the average salary of accountants increases by 50% while the average salary of teachers increase by 20% then ?
comments icon0

A. None of these

B. Fewer students will take degree courses in education and more will take accounting courses.

C. fewer students will attend university

D. fewer students will take degree courses in education and more will take accounting courses
66. The basic economic problems will not be solved by ?
comments icon0
A. The creation of unlimited resources

B. A mixture of government intervention and the free market

C. Government intervention

D. Market forces

67. How is termed the legal proceeding in which debtor remains unable to pay his creditors in full ?
comments icon0
A. Bankruptcy

B. Crash

C. Total loss

D. Default

68. An increase in consumer income will increase demand for a _________ but decrease demand for a?
comments icon0
A. normal good inferior good

B. inferior good normal good

C. substitute good, inferior good

D. normal good, complementary good

69. A graph showing all the combinations of goods and services that can be produced if all of societys resources are used efficiently is a ?
comments icon0
A. Production possibility curve.

B. Lorenz curve.

C. Circular-flow diagram.

D. capital consumption frontier.

70. The equilibrium price clears the market it is the price at which _________________?
comments icon0

A. Buyers spend all their money

B. C and D

C. Excess demanded equals quantity

D. Everything is sold

E. Quantity demanded equal quality supplied

71. Which of the following statements is true about a market economy ?
comments icon0
A. Market participants act as if guided by an invisible hand to produce outcomes that maximize social welfare

B. With a large enough computer, central planners could guide production more efficiently than markets.

C. Taxes help prices communicate costs and benefits to producers and consumers.

D. The strength of a market system is that it tends to distribute resources evenly across consumers.

72. when a market is in equilibrium ?
comments icon0

A. The market is cleared by the equilibrium price

B. All of the above

C. quantity demanded equals quantity supplied

D. Excess demand and excess supply are zero

73. Opportunity cost is_________________?
comments icon0
A. that which we forgo, or give up, when we make a choice or a decision.

B. a cost that cannot be avoided. regardless of what is done in the future

C. the cost incurred in the past before we make a decision about what to do in the future.

D. the additional benefit of buying an additional unit of a product

74. Which of the following is not part of the opportunity cost of going on holiday ?
comments icon0

A. The money you spend on airline tickets

B. The money you could have made if you had stayed at home and worked

C. The money you spent on a theater show

D. the money you spent on food
75. The Phillips curve shows that ?
comments icon0

A. none of these

B. an increase in inflation temporarily increases unemployment.

C. the business cycle has been eliminated

D. inflation and unemployment are unrelated in the short run.

E. a decrease in inflation temporarily increases unemployment.
76. Economics is the study of ?
comments icon0

A. the best way to run society

B. Production technology

C. how society decides what how and for whom to produce

D. Consumption decisions

77. A student chooses to study because the marginal benefit is greater than the ______________ cost?
comments icon0

A. total

B. average

C. expected

D. marginal
78. The sacrifice involved when you choose a particular course of action is called the?
comments icon0
A. Opportunity cost

B. Consumer cost

C. Alternative

D. Producer cost

79. High and persistent inflation is caused by ?
comments icon0

A. OPEC raising the price of oil too much

B. unions increasing wages too much

C. regulations raising the cost of production too much

D. governments increasing the quantity of money too much

80. Macroeconomics deals with?
comments icon0

A. the behavior of firms

B. the activities of individual units

C. the behavior of the electronics industry

D. economics aggregates
81. Which of the following products would be least capable of producing an externality ?
comments icon0

A. inoculations against disease

B. food

C. stereo equipment

D. cigarettes

E. education

82. The exchange rate is the ratio at which the currency of one country is exchanged for the currency of another. Which method was developed by the World bank to exchange rates ?
comments icon0

A. Free market exchange rate

B. Open market exchange rate

C. Breton Wood method

D. Atlas method of exchange rate
83. Which of the following is not one of the basic economic s ?
comments icon0

A. How to produce

B. Who to produce for

C. What to produce

D. How to maximize economic growth
84. A mixed economy ?
comments icon0
A. Has market forces and government intervention

B. Has demand but not supply

C. Has supply and demand

D. Has supply but not demand

85. If a price increase of good A increases the quantity demanded of good B, then good B is a________________?
comments icon0

A. bargain

B. substitute good

C. complementary good

D. inferior good

86. You are planning to run a hot dog stand during a forthcoming fair. You originally estimated that you will generated sales revenue of Rs 2000 and you have already spent Rs 1000 building the hot dog stand. The hot dog stand is nearly completed but now you estimate total sales to be only Rs 800 because the fair clashes with a major music festival in a nearby location. You can complete the hot dog stand for another Rs 300 Your decision rule should be to complete the hot dog stand as long as the cost to complete the stand is less than ?
comments icon0

A. Rs 1000

B. Rs 800

C. Rs 500

D. Rs 300

87. Economics is the study of ?
comments icon0

A. how to fully satisfy our unlimited wants

B. how to avoid having to make trade-offs

C. how to reduce our wants until we are satisfied.

D. how society manages its unlimited resource

88. Amount of money needed to purchase the goods and services required to maintain a certain standard of living called ?
comments icon0

A. Basic requirement

B. Cost of living

C. Cost of life

D. None of the above

89. Mention the name for that urban and rural region which is closely associated economically with an adjoining town or city. Term is also used to describe the area that is serviced by a port or coastal settlement ?
comments icon0

A. Dependent land

B. Parasite land

C. Hinterland

D. Country land

90. Term the written order which directs that a specified sum of money be paid to a specified person ?
comments icon0

A. Bearer Cheque

B. Bill of Lading

C. Bill of Exchange BE

D. None of them

91. The govt. can control inflation by______________?
comments icon0

A. Increasing demand for goods

B. Increasing money supply

C. Increasing supply of goods

D. Decreasing taxes

92. Governments and corporations sell interest bearing certificates to raise money for expansion or trade. What is called these certificates ?
comments icon0

A. Sureties

B. Security bonds

C. Bond

D. Certificates

93. A very rapid growth in prices in which money loses its value to the point where even barter may be preferable is known as ?
comments icon0

A. Deflation

B. Inflation

C. Disinflation

D. Hyper-inflation
94. In Western Europe in 9th C, originated military and social system in which a nobleman would grant the use of land to servant in return for service which is often military, and duty, Name the system ?
comments icon0

A. Land based system

B. Rural system

C. Feudal system

D. Military system

95. What is meant by capital stock ___________?
comments icon0

A. Authorized amount of stock for issue by corporation

B. The total stated or par value of the permanently invested capital of corporation

C. Both of them

D. None of them

96. A seller of goods or services writes a bill that is submitted to a purchaser for payment. What this bill is called?
comments icon0

A. Draft

B. Demand draft

C. Bill of Intent

D. Invoice
97. Name the political and economic system in which the government owns and controls the means of production to benefit all the people ?
comments icon0

A. Authoritarianism

B. Communism

C. Capitalism

D. Socialism
98. Term the exclusive right of one or more persons to carry on some branch of trade of manufacture It is a sole power of dealing in something ?
comments icon0
A. Monopoly

B. Monotony

C. Encroachment

D. Unipolarity

99. Which country is the chief exporter of Tin ?
comments icon0

A. USA

B. Malaysia

C. Russia

D. China

100. Which of the following is not rated by credit rating agencies ?
comments icon0

A. Commercial paper

B. Shares

C. Debentures and bonds

D. Government securities