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
5301. In the ERM, each country fixed participant Collectively the group ________ against the rest of the world?
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A. a real exchange rate, floated

B. a real exchange rate, pegged

C. a purchasing power parity, pegged

D. a nominal exchange rate, floated
5302. Under floating exchange rates, expectations of higher interest rates are likely to cause an ____ of the exchange rate?
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A. depreciation

B. fall

C. devaluation

D. appreciation
5303. In the absence of international capital controls, central banks set ________ to provide the correct incentive for speculators?
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A. income policy

B. money supply targets

C. inflation targets

D. interest rates
5304. The main features of the European Monetary system are ?
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A. currency swap agreement between member

B. The ECU

C. all of the above

D. the exchange rate mechanism

5305. The record of a countrys imports and exports of of goods and services plus net investment incomes and current transfers of money to and from abroad, is called its ?
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A. balance of payments

B. balance of payments on current account

C. visible trade balance

D. balance of trade

5306. If a nations interest rates are relatively low compared to those of other countries. then the exchange value of its currency will tend to ?
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A. fluctuate more than if interest rates were high

B. depreciate

C. appreciate

D. not be affected

5307. If a large car importer in the Pakistan wants to import many cars, then the exchange value of the Pak rupees will tend to ?
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A. fluctuate more than it would do otherwise

B. appreciate

C. depreciate

D. not be affected

5308. The record of countrys transfers of land inter-government payments and money sent by migrants to and from abroad is called its ?
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A. balance of payments on current account

B. capital account of the balance of payments

C. balance of payments

D. financial account of the balance of payments

5309. The Maastricht criteria for entry to the EMU are that applicants should have ?
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A. stable nominal exchange rates

B. budget deficits and government debt under control

C. low inflation

D. all of the above

E. low interest rates

5310. Starting from a position of internal and external balance a reduction in aggregate demand will cause a current account ?
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A. revaluation

B. deficit

C. devaluation

D. surplus
5311. A fixed exchange rate, plus perfect capital mobility ________ the scope for monetary policy ?
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A. undermines

B. enhances

C. facilitates

D. encourages

5312. If the Pakistan takes part in a war in the Middle East, then the exchange value of its currency will tend to ?
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A. depreciate

B. not be affected

C. appreciate

D. fluctuate more than if it were at peace

5313. As prices rise. People will want to keep more money as cash and in bank accounts This is called ?
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A. real balance effect.

B. menu costs of inflation.

C. cash ratio.

D. money illusion.

5314. The demand for ice-cream is lower outside of summer causing lower demand for ice-cream salesman if they cannot find other work, this is called _______ unemployment?
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A. Regional

B. seasonal

C. structural

D. demand-deficient

5315. Which of the following is a possible government objective as opposed to a policy ?
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A. Lower taxation rates

B. Lower government spending

C. Lower interest rates

D. Lower inflation

5316. Which fixed exchange rates and no private capital flows, to correct a balance of payments deficit, the central bank will _______ and ________ ?
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A. sell foreign exchange buy domestic currency

B. sell foreign exchange sell domestic currency

C. buy foreign exchange, sell domestic currency

D. buy foreign exchange buy domestic currency

5317. The competitive advantage from a devaluation is likely to be offset by _______ and ________?
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A. higher import prices, lower export prices

B. lower export prices, lower imports volumes

C. higher wage increases lower import volumes

D. higher import prices, higher wages increases
5318. The record of a countys transfers of shareholding property and bank deposits to and from abroad is called its ?
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A. balance of payments

B. capital account of the balance of payments

C. balance of payments on current account

D. financial account on the balance of payments.
5319. A rise in the real exchange rate will ________ the competitiveness of the domestic economy?
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A. None of the above

B. increase

C. reduce

D. do nothing to

5320. What is meant by an objective ?
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A. A target

B. A strategy

C. A way of reaching a target

D. A policy

5321. If the exchange rate between the UK and Japan changes from 1 = 100 yen to 1 = 150 yen then ceteris paribus, the price of UK goods in Japan ?
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A. will decrease

B. could either increase of decrease

C. will remain the same

D. will increase
5322. In a fixed exchange rate regime, the central the exchange rate ?
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A. selling, increase

B. selling, reduce

C. buying reduce

D. C and D

E. A and B

F. buying increase

5323. Fiscal policy is weak under floating exchanges rates as fiscal expansion ?
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A. crowds out exports

B. crowds out imports

C. reduces the budget deficit

D. crowds out public consumption

5324. Unemployment resulting from imperfect information in the labour market is called ____ unemployment?
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A. disequilibrium

B. natural

C. Frictional

D. real-wage

5325. Aggregate supply is the total amount ?
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A. of goods and services produced in an economy.

B. of products produced by a given industry.

C. of labour supplied by all households

D. produced by the government

5326. If British residents want more French francs to purchase more French cloths other things equal, then the equilibrium value of the pound against the French franc will ?
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A. fluctuate

B. fall

C. rise

D. not change

5327. Floating exchange rates are ____ in the short run?
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A. volatile

B. depreciating

C. stable

D. predictable

5328. If the economy is at the peak of the business cycle, aggregate demand ____ unemployment _______ inflation _______ and the current account of the balance of payments is likely to move towards _______?
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A. falls; rises; falls; surplus

B. is static; low; rises; deficit

C. rise; falls; rise; deficit

D. falls; falls; falls; surplus

5329. With fixed exchange rates and no private currency flows, when the central bank buys domestic currency the domestic money supply is ?
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A. unaffected

B. reduced

C. None of these

D. increased

5330. A monetary union means ________, ________ and ________?
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A. permanently fixed exchange rates, free capital movements, a single interest rates

B. a common currency floating exchange rates common monetary policy

C. a common currency a single central bank, common monetary policy

D. permanently fixed capital movements floating exchange rates a fixed structure of interest rates

5331. An individual who is not working and who has given up looking for work is classfied as ?
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A. unemployed.

B. a discouraged worker:

C. unemployable

D. hard core unemployed.

5332. Which does the government not control directly ?
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A. Spending on education

B. Spending on defence

C. Firms investment decisions

D. Spending on health

5333. The record of countrys imports and exports of goods is called its ?
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A. balance of trade:

B. balance of payments on current account

C. visible trade balance

D. balance of payments

5334. perfect international capital mobility suggests that international funds will be responsive to ________ differentials?
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A. price

B. current account

C. interest rate

D. tax

5335. All of the following are benefits of the single market except ?
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A. it allows countries to exploit their comparative advantage, more fully

B. it intensified competition

C. firm could more readily exploit

D. economies of scal

E. it is easier to book holidays in member countries
5336. In the EMU a countrys competitiveness can change because of ?
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A. interest rate adjustment

B. devaluation

C. domestic wage and price adjustment

D. central bank intervention in the Forex

5337. The labour force can be defined as ?
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A. The population between school leaving age and retirement age.

B. anyone who is working or actively seeking work

C. Those who could claim benefit if they were to become unemployed.

D. Those of working age who are seeking work and are available to for work at current wage rates.
5338. The single European Act committed ________ governments to a ________ in 1992?
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A. Western European, single market

B. European union, single market

C. Western European, single currency area

D. European Union, single currency area

5339. In the short run the level of floating exchange rates is determined mainly by ?
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A. trade

B. speculation

C. competitiveness

D. interest rates

5340. Government policies that focus on changing interest rates are called ?
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A. supply-side policies

B. fiscal policies

C. incomes policies

D. monetary policies
5341. Cyclical unemployment is the ?
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A. Unemployment that occurs during recessions and depressions.

B. Unemployment that results when people become discouraged about their chances of finding a job so they stop looking for work.

C. Portion of unemployment that is due to the normal working of the labour market

D. Portion of unemployment that is due to changes in the structure of the economy that results in a significant loss of jobs in certain industries.

5342. Government policies that focus on increasing production rather than demand are called ?
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A. fiscal policies

B. monetary policies

C. omes policies

D. supply-side policies
5343. If the US economy is forecast to come out of recession because military expenditure has increase then the exchange value of the UK pound will tend to ?
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A. not be affected

B. fluctuate more than it would do therwise

C. depreciate

D. appreciate
5344. Which of the following is macroeconomic issue ?
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A. The price of houses in karachi

B. The level of unemployment is pakistan

C. The wage rate for plumbers in Islamabad

D. Your decision to work or stay at home
5345. Unemployment resulting from changes in the pattern of demand or supply in the economy is called _______ unemployment?
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A. structural

B. technological

C. demand-deficient

D. regional

5346. Since 1998 many government have defined unemployment using ?
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A. the number out of work and claiming benefit

B. the percentage of the labour force not in work

C. a labour force survey.

D. the ILO/OECD standardised unemployment measurement
5347. Which of the following is not involved with fiscal policy ?
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A. Income tax

B. National insurance

C. VAT

D. Interest insurance

5348. The natural rate of unemployment is generally thought of as the ?
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A. ratio of the frictional unemployment rate to the cyclical unemployment rate.

B. Sum of frictional unemployment and cyclical unemployment

C. sum of frictional unemployment and structural unemployment.

D. Sum of structural unemployment and cyclical unemployment.

5349. The percentage of the labour force that is unemployed is the ?
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A. Labour force rate.

B. Unemployment population ratio.

C. Unemployment rate

D. employment rate

5350. Unemployment resulting from real wages being above their equilibrium level is called _________ unemployment?
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A. frictional

B. natural

C. disequilibrium

D. structural