economics MCQs – Page 109

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 Review each marked answer and report any item that may be outdated or unclear.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 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
2161. The formula for the marginal revenue product of labour (L is for labour, X is the product) is ?
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A. PX/MPL

B. MPL/PX

C. MPL + PX

D. (MPL) (PX)

2162. The biggest Industry of Pakistan is ?
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A. Paper

B. Textile

C. Sugar

D. cement

2163. A progressive income tax means that those with a higher income pay ?
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A. all the taxes in the economy

B. the same percentage of their income in taxes as low income people all the taxes in the economy.

C. a higher percentage of their income in taxes then low income people

D. a lower percentage of their income in taxes than low income people

2164. If borrowers and lenders agree on a nominal interest rate and inflation turns out to be less than they had expected ?
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A. borrowers will gain at the expense of lenders

B. lenders will gain at the expense of borrowers

C. None of these answers

D. neither borrowers nor lenders will gain because the nominal interest rate has been fixed by contract

2165. Space Satellite Badr II was launched on December 10, 2001 when Pakistan launched Pak Sat I ?
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A. 15-Feb-03

B. 25-Dec-02

C. 29-Dec-02

D. January 25, 2003
2166. The agro based industry is ?
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A. Carpets

B. Dairy farms

C. Iron work

D. Woodwork

2167. The Benazir Benefit income Scheme is a good example of ?
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A. none of the above

B. a benefit in kind.

C. a means tested cash benefit

D. a universal (social insurance based) benefit

2168. Reducing involuntary unemployment ?
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A. Helps the economy move on the to Production Possibility Frontier

B. Helps shift the economys Production Possibility Frontier outwards

C. Helps the economy move along its Production Possibility Frontier

D. Helps the economy move inside the Production Possibility Frontier

2169. Governments can stimulate productivity by ?
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A. Imposing higher taxes on capital

B. reducing spending in education

C. encouraging private investment

D. encouraging more labour intensive work to reduce unemployment

2170. A decrease in the supply of labour is likely to lead to ?
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A. A higher equilibrium wage and lower quantity of labour

B. A lower equilibrium wage and lower quantity of labour

C. A lower equilibrium wage and higher quantity of labour

D. A higher equilibrium wage and higher quantity of labour

2171. Unions tend to increase the disparity in pay between insiders and outsiders by ?
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A. decreasing the demand for workers in the Unionized sector

B. Increasing the wage in the Unionized sector which may create an increase in the supply of workers in the non-unionized sector

C. increasing the wage in the Unionized sector, Which may create a decrease in the supply of workers in the non-unionized sector

D. Increasing the demand for workers in the Unionized sector

2172. Sialkot is also famous for Saddles & ?
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A. paper manufacturing

B. agriculture machinery

C. musical instruments

D. harvesters

2173. If the Pakistan receives larger than expected revenues from exports then the exchange value of its currency will tend to ?
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A. appreciate

B. fluctuate more than if exports were lower

C. not be affected

D. depreciate

2174. Under floating exchange rates, expectations of higher interest rates are likely to cause an ____ of the exchange rate?
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A. appreciation

B. fall

C. devaluation

D. depreciation

2175. A miner who has been unable to find work for so long that he has stopped looking for work is considered to be ?
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A. Unemployed

B. Not in the labour force

C. Not in the adult population

D. Employed

2176. As the wage rate per hour increases, the opportunity cost of leisure ?
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A. may increase of decrease depending on the individuals preferences.

B. remains constant

C. decreases since the customer now has more income to spend

D. increases since the cost of forgoing one hour of work increases
2177. In the year 2010-11 what was per capita income ?
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A. $975

B. $ 1095

C. $905

D. $945

2178. The participation rate in the labour force is affected by ?
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A. higher real wages

B. all of the above

C. lower fixed costs of working

D. changes in tastes between leisure and work

E. lower non-labour income

2179. In the West Women and non-whites on average receive lower incomes than white men because ?
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A. all of the above

B. they tend to work in relatively unskilled jobs

C. educational disadvantage

D. firms are reluctant to invest in training

2180. Heavy Mechanical Complex Taxila was set up with the aid of ?
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A. UK

B. China

C. Japan

D. USA