economics MCQs – Page 108

Practise multiple-choice questions from economics for competitive examinations and subject revision. Review each marked answer and report any item that may be outdated or unclear.

economics Mcqs

1. the national economy 2. profit maximizing under perfect competition and monopoly 3. application of economics 4. the aggregate demand aggregate supply model 5. surplus 6. money interest rates and output 7. average and total cost 8. stabilization adjustment reform and privatization 9. risks and diversification efficient market hypothesis 10. the phillips curve 11. supply and demand 12. capital formation investment choice information technology and technical progress 13. aggregate supply unemployment and inflation 14. elasticity 15. comparative gdp 16. roots of modern macroeconomics 17. production factors 18. poverty malnutrition and income inequality 19. trade regulations and industrial policies 20. monetary union 21. exchange rate systems and currency crises 22. economic development in historical perspective 23. exchange rate determination 24. monopoly competition 25. the balance of payments 26. inflation productivity 27. macroeconomic issues and analysis 28. employment migration and urbanization 29. macroeconomic policy tools 30. supply side policies 31. exchange rate adjustments and the balance of 32. miscellaneous 33. taxation 34. trade policies for the developing nations 35. markets efficiency and the public interest 36. the external debt and financial crises 37. budget deficits and the trade balance 38. alternative theories of the firm 39. public goods 40. the meaning and measurement of economic development 41. characteristics and institutions of developing countries 42. agriculture irrigation system of pakistan 43. education health and human capital 44. economic problems of developing countries 45. theories of economic development 46. basic of economics 47. consumer theory vs real consumers 48. applied microeconomics 49. long term economic growth 50. externality internality 51. fiscal and monetary policy 52. prices wages taxes 53. balance of payments aid and foreign investment 54. international factor movements and multinational corporations 55. entrepreneurship organization and innovation 56. the international economy and globalization 57. population and development 58. non tariff trade barriers 59. foundations of modern trade theory 60. global economic development 61. market 62. rural poverty and agricultural transformation 63. regional trading arrangements 64. foreign exchange 65. introduction to economics 66. world economy miscellaneous 67. sources of comparative advantage 68. natural resources and the environment toward sustainable development 69. monopoly 70. asymmetric information 71. income inequality 72. labour market 73. tariffs 74. development planning and policy making the state and the market 75. oligopoly 76. industrial development 77. costs supply and perfect competition 78. human capital 79. monetary fiscal and incomes policy and inflation 80. stocks

2141. Industry is the second largest sector of the economy. How much of GDP it accounts for ?
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A. 19.70%

B. 20.50%

C. 16.50%

D. 18.2%

2142. If workers get a real wage increase this will likely ____ and _____?
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A. encourage the use of more capital in the long run, reduce demand for all inputs

B. encourage the use of more capital increase demand for all inputs

C. encourage the use of less capital reduce demand for all inputs

D. encourage the use of less capital, reduce demand for all inputs

2143. Human capital can be described as ?
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A. education

B. a person inherited ability

C. the tools used by workers to enhance productivity

D. the stock of expertise accumulated by a worker

2144. It is not considered discrimination when an employer offers different opportunities to individuals that differ only by them ?
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A. sex

B. race

C. productivity

D. age

2145. Suppose that requiring motorcycle riders to wear helmets reduces the probability of a motorcycle fatality from 0.3 percent to 0.2 percent over the lifetime of a motorcycle rider and that the cost of lifetime supply of helmets is Rs5000. It is efficient for the government to require riders to wear helmets if human life is valued at ?
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A. Rs50,000 or more

B. Rs500 or more

C. Rs 500,000 or more

D. Rs 150 or more

E. Rs100 or more

2146. If one country, with floating exchange rates, has higher inflation than its competitors we would expect its exchange rate to ?
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A. be in short supply

B. depreciate

C. appreciate

D. revalue

2147. Multinational corporations ?
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A. require governmental subsidies in order to conduct worldwide operations

B. always enjoy political harmony in nations where their subsidiaries operate

C. increase the transfer of technology between nations

D. make it harder to nations to foster activities of comparative advantage

2148. Where a tax can be shifted the incidence depends on ?
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A. how many producers there are:

B. who is legally obliged to pay the tax

C. elasticities of demand and supply

D. whether there is perfect or imperfect information

2149. A rise in the real exchange rate will ________ the competitiveness of the domestic economy?
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A. None of the above

B. do nothing to

C. increase

D. reduce

2150. Suppose each of 20 neighbours on street values street repairs at 3000 the cost of the street repair is 40,000 which of the following statements is true ?
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A. it is not efficient to have the street repaired

B. It is efficient for each neighbour to pay 3,000 to repair the section of street in front of his/her home

C. it is efficient for the government to tax the resident 2,000 each and repair the road

D. None of these answers are true

2151. The Tragedy of the Commons is a parable that illustrates why?
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A. natural monopolies overproduce goods.

B. public goods are underproduced

C. private goods are under consumed

D. common resources are overconsumed

2152. International joint ventures can lead to welfare losses when the newly established firm ?
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A. enters markets neither parent could have entered individually

B. adds to the pre-existing productive capacity

C. yields cost reductions unavailable to parent firms

D. gives rise to increased amounts of market power

2153. When markets fail to allocate resources efficiently, the ultimate source of the problem is usually ?
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A. that property rights have not been well established

B. that prices are not high enough, so people overconsume

C. government regulation

D. that prices are not low enough so firms over produce

2154. The stock of knowledge, skills and talents that people possess is called ?
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A. skill-building investment

B. skill capital

C. human capital

D. training investment

2155. A public good is ?
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A. neither rival nor excludable

B. rival but not excludable.

C. both rival but excludable

D. not rival but excludable

2156. The opportunity cost of acquiring education is ?
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A. Course fees living expenses and textbook

B. course fees and living expenses

C. the earnings foregone

D. course fees

2157. The ratio of Industrial progress in the country is ?
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A. 6.20%

B. 5.40%

C. 8.6%

D. 4.30%

2158. The market power effect of an international joint venture can lead to welfare losses for the domestic economy unless offset by cost reductions. Which type of cost reduction would not lead to offsetting welfare gains for the overall economy ?
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A. new work rules promoting workers efficiency

B. lower wages extracted from workers

C. R&D generating welfare improved technology

D. development of more productive machinery

2159. Efficiency wages are ____ that raise _____?
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A. low wages, employment

B. high wages, employment

C. high wages, labor supply

D. high wages, productivity

2160. Which of the following is not a supply side measure ?
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A. Helping individuals to move location to find work

B. Increasing spending on existing industries

C. Providing more information

D. Increased training

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