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
5101. According to Human Development Report 2003, about ________ countries were poorer in 2003 than in 1990?
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A. 50

B. 1000

C. 5

D. 100

5102. The Human Development Report 2003, which assumes that poverty is multidimensional calculates a human poverty index based on which of the following measures of deprivation ?
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A. probability at birth of not surviving to age 40

B. lack of a decent standard of living

C. #NAME?

D. adult illiteracy rate

5103. Sala-i-Martin interpolates income distribution by ?
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A. simulation

B. quientiles

C. percentiles

D. relative ratio measures

5104. In 2003, the UN Development Program estimated that a 1-percent LDC per capita consumption growth, with income inequality unchanging, would reduce the poverty percentage by _________ percent yearly?
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A. 0

B. 2

C. 0.5

D. 6

5105. Income inequalities are often shown on a ?
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A. marginal inequality curve

B. sen curve

C. Lorenz curve

D. production possibility curve

5106. Sens welfare theory relies on ?
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A. individuals capabilities

B. individuals wealth

C. individuals accomplishments

D. individuals education

5107. Compared to what occurred under free trade, Mexicos producer surplus ____ and consumer surplus ____ as a result of the subsidy Use the figure that you have plotted to calculate the amounts ?
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A. decreases, decreases

B. increases, decreases

C. increases, increases

D. decreases, increases
5108. Under free trade suppose that Japan can supply radios t mexico at the price of $45 Therefore, Mexicos imports equal ?
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A. 15 radios

B. 10 radios

C. 5 radios

D. zero radios
5109. Referring to the above, the embargo was mainly resisted by ?
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A. U.S grains consumers and producers of bread

B. Grain consumers in foreign countries

C. Grain Producers in foreign countries

D. U.S farmers and grains companies
5110. All of the following are fundamental to the World Trade Organization except ?
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A. the prohibition of import quotas and export quotas

B. nondiscrimination in trading relationships

C. the use of the most-favored nation clause (normal trade relations)

D. bilateral tariff reductions to promote trade liberalization
5111. The organization that currently establishes rules of conduct for firms engaging in international trade is the ?
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A. International Trade Commission

B. World Trade Organization

C. World Bank

D. Department of justice

5112. Which round of international trade negotiations resulted in the creation of the World Trade Organization ?
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A. Tokyo Round of 1973-1979

B. Uruguay Round of 1986-1993

C. Kennedy Round of 1964-1967

D. Doha Round of 2003-2007

5113. ________ protection such as the escape clause, provide temporary protection to domestic industries facing competition from fairly traded foreign goods?
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A. domestic content

B. generalized system of preference

C. countervailing duty

D. safeguards
5114. When one country provides most favored nation status (normal trade relations) for another, it agrees to ?
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A. charge that nations products a higher tariff than any other nations

B. exports to that nation any products that it wants to purchase

C. charge that nations products a tariff rate no higher than that on any other nation

D. charge the nations products a lower tariff than any other nations

5115. The result of antidumping tariffs is to ?
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A. decrease producer surplus in the importing country

B. increase consumer surplus in the importing country

C. impose a price floor on foreign prices in the importing country

D. impose a price ceiling on foreign price in the importing country

5116. Suppose that Russia steel firms engage in dumping in the German market in terms of overall economic welfare, German welfare would _______ as the result of the dumping?
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A. an data-mce-type="bookmark" style="width: 0px;overflow: hidden;line-height: 0" class="mce_SELRES_start">?A. increase

B. decrease

C. not change

D. None of These

5117. To help its firms penetrate Mexicos radio market suppose the Japanese government provides them a subsidy of $15 for each radio shipped to Mexico As a result of this trade policy ?
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A. The price of radios in Mexico equals $60 and its imports equal 30 radios

B. The price of radios in Mexico equals $30 and its imports equal 30 radios

C. The price of radios in Mexico equals $40 and its imports equals 20 radios

D. Th price of radios in Mexico equals $20 and its imports equal 40 radios

5118. During the post-world War II era?
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A. NTBs and tariffs have decreased in relative importance

B. NTBs have increased and tariffs have decreased in relative importance

C. NTBs have decreased and tariffs have increased in relative importance

D. Nontariff barriers (NTBs) and tariffs have increased in relative importance

5119. Following World War II the United States and other countries sought to liberalize trade among each other the first major postwar step toward trade liberalization was the ?
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A. Smoot Hawley Organization

B. McKinley Agreement on Trade policy

C. General Agreement on Tariffs and Trade

D. World Trade Organization

5120. Antidumping duties applied to imported goods ?
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A. result in lower-priced goods for domestic consumers

B. result in decreases in consumer surplus for domestic households

C. are abolished by the World Trade Organization

D. are imposed by industrial countries but not developing countries

5121. Concerning dumping, which of the following is true ?
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A. U.S firms can obtain protection from foreign dumping, even though this protection tends to harm overall U.S welfare

B. dumping can never be a profit-maximizing strategy for U.S firms to pursue

C. predatory dumping represents the most common form of dumping by U.S firms

D. U.S firms rarely if ever, engage in distress dumping or persistent dumping

5122. ________ are quotas that result in a total prohibition of trade?
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A. embargoes

B. tariff-rate quotas

C. voluntary export restraints

D. nontariff barriers

5123. According to the United States ____ is the number one violator of intellectual property rights
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A. Australia

B. China

C. Canada

D. Japan

5124. Countervailing duties levied by the U.S government are imposed to offset ?
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A. foreign dumping of goods in the U.S

B. buy national policies of foreign government

C. stringent environmental regulations of foreign government s

D. subsidies granted to foreign firms that export to the U.S
5125. The effect of the most favored nation (normal trade relations) clause is to ?
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A. maintain a nondiscriminatory structure of tariffs

B. increase all tariffs between countries

C. maintain a discriminatory structure of tariffs

D. eliminate all tariffs between countries

5126. The World Trade Organization is sometimes criticized for all of the following reasons except?
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A. it has no way to solve trade disputes among member countries

B. it is a puppet of multinational corporations

C. favors free trade over the quality of the environment

D. it reduces the sovereignty of member countries

5127. Concerning economic sanctions, export embargo induces greater losses in consumer surplus for the target country the?
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A. more elastic the target country demand schedule

B. more in elastic the target country supply scheduleB.

C. greater then available output from alternative suppliers

D. lesser it initial dependence on foreign produce goods.

5128. The U.S has granted China permanent most favored nation treatment (normal trade relations) This means that the tariff schedules which apply to U.S imports from china ?
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A. have tariff rates that are identical to the rates that apply to other countries to which the U.S grants most-favored nation treatment

B. have tariff rates equal to zero suggesting a free trade policy for the United States

C. have lower tariff rates than the rates that apply to any other country sending goods to the United States

D. have lower tariff rates than the rates that apply to other countries to which the U.S grants most favored nation treatment

5129. Those who argue in favor of import protection generally give the impression that such restricted trade will?
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A. provide benefits to some particular industry

B. decrease the level of national security

C. provide benefits to the entire nation

D. not yield welfare losses for the nation

5130. The institutional framework developed in 1947 to promote trade liberalization is known sa?
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A. the WTO

B. the IMF

C. the World Bank

D. the GATT
5131. The theory of suggests that government can assist domestic companies in capturing economic profits from foreign competitors ?
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A. Strategic trade policy

B. export promotion policy

C. international dumping

D. countervailing duties

5132. In 1980 the U.S imposed export quotas on grain sold to the Soviet Union in response to its armed invasion of Afghanistan if other nations do not increase grain exports to the soviets all the following would likely occur except?
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A. Export revenues would decrease for U.S producers

B. Consumer surplus would decrease for the soviets

C. Grain prices would rise in the Soviet union

D. Grains prices would rise in the united States
5133. The strongest political pressure for a trade policy that results in higher protectionism comes from?
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A. domestic workers lobbying for export restrictions

B. domestic consumers lobbying for export restrictions

C. domestic workers lobbying for import restriction

D. domestic consumers lobbying for import restrictions
5134. Economic sanctions?
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A. are prohibited by the World Trade Organization

B. affect international trade but not international financial flows

C. involve restrictions on imports, but not exports

D. involve restrictions in imports exports and or financial flows
5135. If two countries A and B are member of a currency union and there is a shift in consumer preferences away from the goods of country A and towards those of country B than which one of the following would help to offset the effect of the resulting changes in aggregate demand in A and B on inflation and unemployment in the tow countries ?
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A. An increase in government spending in country (A)

B. A low degree of capital mobility between the two countries

C. A high degree of labour mobility between the tow countries

D. A depreciation in the foreign exchange value of the common currency

5136. Which one of the following is not a characteristic that reduces the cost of a signals currency ?
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A. A high degree of capital mobility among the countries of the common currency area

B. None of the characteristics described in these answers They are all characteristics that reduce the cost of a single currency

C. A high degree of trade integration among the countries of the common currency area

D. A high degree of labour mobility among the countries of the common currency area

5137. To try to overcome the free rider problem, the members of EMU signed ?
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A. the European solidarity packs

B. the exchange rate mechanism pact

C. the stability and growth pack

D. the responsibility and growth pack

5138. Which of the following could not be described as an asymmetric macroeconomic shock ?
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A. An epidemic of an animal disease in a country that significantly reduces the countrys agricultural output

B. A sudden and substantial fall in the worldwide demand for French wine

C. A sudden and substantial rise in prices on the world oil market

D. None of these answers All of them are asymmetric macroeconomic shocks

5139. Which of the following is a problem for monetary policy in a currency union ?
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A. The inflation-unemployment trade-off is more unstable in a currency union

B. Money supply is more difficult to control in a currency union.

C. All of these answers describe problems for monetary policy in a currency union

D. The interest rate may be higher than is appropriate for economic conditions in some countries while its lower than is appropriate in some others monetary policy must be one size fits all
5140. A high degree of real wage flexibility will tend to reduce the cost to a country of joining a currency union because ?
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A. real wages fall rapidly in a recession and the economy moves quickly back to long run equilibrium so limiting the duration of the recession even when exchange rate adjustment is not possible

B. All of the reasons given in these answers are correct

C. workers will move from a country in which aggregate demand falls to other countries of the currency union, and so unemployment remains lower than it otherwise would

D. real wages fall and so offset the inflationary effect of switching from the old currency to the new common currency

5141. What is fiscal federalism ?
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A. A fiscal system for a group of countries in which fiscal policy is set in a treaty signed by all the countries

B. A fiscal system for a group of countries involving a common fiscal budget and a system of taxes and fiscal transfers across countries

C. A fiscal system in which fiscal policy is jointly determined by local and national politicians

D. A fiscal system for a group of countries in which government budget deficits are strictly limited

5142. How does the eurozone compare with USA as a possible optimal currency area (OCA) ?
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A. The eurozone has a lower degree of labour mobility than the USA and labour law is much less restrictive in the erozone than in the USA On these measures it is hard to judge whether the eurozone is more or less likely to be an OCA than is the USA

B. The eurozone has a lower degree of labour mobility than the USA and labour law is much more restrictive in the erozone than in the USA On these measures the eurozone is less likely to be an OCA than is the USA

C. The eurozone has a higher degree of labour mobility than the USA but labour law is much more restrictive in the erozone than in the USA On these measures it is hard to judge whether the eurozone is more or less likely to be an OCA than is the USA

D. The eurozone has a higher degree of labour mobility than the USA and labour law is much less restrictive in the erozone than in the USA On these measures the eurozone is more likely to be an OCA than is the USA

5143. Which one of the following is not an argument in support of the UK joining the EMU ?
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A. None of these arguments they are all arguments in support of the UK joining the UMU

B. The UK needs to be a member of the EMU in order to continue to attract such large share of foreign direct investment in EU countries

C. The characteristics of the UK housing market make UK consumers expenditure very sensitive to changes in interest rates

D. The UK risks exclusion from the Euroland capital market with damaging consequences with damaging

5144. Which of the following is a problem for fiscal policy in a currency union ?
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A. government of the member countries of the currency union may run large budget deficits and so impose costs on other countries by pushing up interest rates on the bonds these countries governments issue

B. It is difficult to raise enough tax revenue to pay for the operation of the currency union

C. Government of the member countries of the currency union may run large budget deficit and so crowd out private investment

D. The central bank controls interest rates on long-term bonds issued by the governments of the member countries of the currency union

5145. Under a pegged exchange rate system which does not explain why a country would have a balance of payments deficit ?
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A. very high rates of inflation occur domestically

B. the domestic currency is undervalued relative to other currencies

C. technological advance is superior abroad

D. foreigners discriminate against domestic products

5146. The exchange rate system that best characterizes the present international monetary arrangement used by industrialized countries is ?
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A. freely fluctuating exchange rates

B. managed floating exchange rates

C. pegged or fixed exchange rates

D. adjustable pegged exchange rates

5147. Which exchange rate system does not require monetary reserves for official exchange rate intervention ?
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A. dual exchange rates

B. pegged exchanged rates

C. floating exchange rates

D. managed floating exchange rates

5148. Which exchange rate system involves a leaning against the wind|| strategy in which short-term fluctuations in exchange rates are reduced without adhering to any particular exchange rate over the long run ?
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A. pegged of fixed exchange rates

B. adjustable pegged exchange rates

C. free floating exchange rates

D. managed floating exchange rates

5149. Small nations with more than one major trading partner tend to peg the value of their currencies to ?
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A. gold

B. a single currency

C. silver

D. a basket of currencies
5150. Under adjustable pegged exchange rates, if the rate of inflation in the United States exceeds the rate of inflation of its trading partners ?
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A. U.S imports tend to rise, and exports tend to fall

B. U.S exports tend to rise, and imports tend to fall

C. U.S foreign exchange reserves tend to rise

D. U.S foreign exchange reserves remain constant