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
5401. Which of the following would be considered a supply-side policy ?
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A. An increase in government spending that would lead to increased aggregate demand

B. An increase in the minimum wage that would cause consumer spending to increase

C. investment tax credits for businesses to encourage investment

D. Restrictions placed on the amount that can be imported.

5402. Privatization is the transfer of ?
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A. government businesses to the private sector.

B. corporately owned businesses to individuals

C. privately owned businesses to the government sector

D. publicly held stock to private individuals

5403. Reaganomics was a radical shift in policy aimed at directly tackling ?
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A. the underground economy

B. the supply side of the country

C. the charities economy

D. the demand side of the economy

5404. Interventionist policies to restore regional imbalance focus on ?
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A. tax concessions for firms that move.

B. improved infrastructure

C. all of the above

D. subsidies to encourage firms that moves

5405. A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work, save and invest. These economists are?
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A. neo-Keynesian economists

B. Supply-side economics

C. rational-expectations economists.

D. new classical economists.

5406. According to supply-side economists, as tax rates are reduced, labor supply should increase. This implies that ?
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A. the substitution effect of a wage change is greater than the income effect of a wage change

B. the income effect of a wage change is greater than the substitution effect of a wage change.

C. there is no substitution effect when tax rates are changed

D. there is no income effect when tax rates are changed

5407. According to Supply-side economists. if taxes are cut so that people have an increased incentive to work and businesses have an increased incentive to invest ?
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A. aggregate supply will increase will increase aggregate demand will decrease and the price level will decrease

B. aggregate supply will increase will increase aggregate output will increase and the price level will decrease

C. aggregate supply will increase will increase aggregate output will increase and the price level will increase

D. both aggregate supply and demand will increase will increase and the price level will increase

5408. A way helping depressed regions by having wage subsidies lower business taxes and capital subsidies has been suggested as ?
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A. New classical economists.

B. interventionist policies.

C. Left wing theorists

D. monetarists.

5409. The success of regional and urban policies has been limited by ?
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A. bad luck

B. poor communications

C. the low level of government grants and by the fact that some projects would have gone ahead anyway

D. bureaucracy

5410. Complete currency pass through arises when a 10 percent depreciation in the value of the dollar causes U.S?
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A. export prices to rise by 10 percent

B. import prices to fall by 10 percent

C. import prices to rise by 10 percent

D. export prices to fall by 10 percent

5411. The balance of trade can only worsen if income ____ relative to absorption ?
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A. does not change

B. decreases

C. increases

D. None of the above

5412. The extent to which a change in the exchange rate leads to changes in import and export prices is known as the ?
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A. absorption effect

B. J Curve effect

C. pass through effect

D. Marshall Lerner effect

5413. Which approach predicts that is an economy operates a full employment and faces trade deficit currency devaluation will improve the trade balance only if domestic spending is cut thus freeing resources to produce exports ?
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A. the elasticities approach

B. the absorption approaches

C. the Marshall Lerner approach

D. the monetary approach

5414. According to the Marshall-Lerner condition if a countrys currency depreciates its trade balance will worsen if ?
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A. elasticity of demand for exports = 0.7; elasticity of demand for imports = 0.3

B. elasticity of demand for exports = 0.5; elasticity of demand for imports = 0.7

C. elasticity of demand for exports = 0.9; elasticity of demand for imports = 0.4

D. elasticity of demand for exports = 0.3; elasticity of demand for imports = 0.6
5415. If export contracts are written in terms of foreign currency and import contracts are denominated in domestic currency a depreciation of the dollar during the currency contract period ?
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A. should increase the dollar value of exports

B. must increase the balance of trade

C. All of the above

D. should not have any effect on the dollar value of U.S imports

5416. The notion that, following a currency depreciation the balance of trade falls for a while before increasing is called an effect ?
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A. J Curve

B. relative price

C. elasticity

D. Pass through

5417. Suppose that U.S dollar depreciates 70 percent against the yen yet Japanese export prices to Americans did not decrease by the full extent of the dollar depreciation. This is best explained by ?
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A. complete currency pass through

B. partial J curve effect

C. partial currency pass through

D. complete J curve effect

5418. Empirical evidence regarding in the effects of currency depreciation on the balance of trade indicates that?
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A. no strong generalization is possible

B. depreciation generally improves the trade balance

C. depreciation generally hurts the trade balance

D. depreciation has no effect on the trade balance

5419. Economic theory predicts that a currency depreciation will least lead to an improvement in the home countrys trade balance when ?
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A. home demand for imports is elastic and foreign export demand is inelastic

B. home demand for imports is inelastic and foreign export demand is elastic

C. home demand for imports is elastic and foreign export demand is elastic

D. home demand for imports is inelastic and foreign export demand is inelastic
5420. Because of the J curve effect and partial currency pass through, a depreciation of the domestic currency tends to increase the size of a ?
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A. trade deficit in the long run

B. trade deficit in the short run

C. trade surplus in the long run

D. trade surplus in the short run

5421. Given a two-country world, suppose Japan devalues the yen by 20 percent and west German devalues the mark by 15 percent This result is a (an)?
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A. appreciation in the value of both currencies

B. depreciation in the value of both currencies

C. appreciation in the value of the yen against the mark

D. depreciation in the value of the yen against the mark
5422. The shorter the ______ pass through period the ______ the desirable BOT effects of evaluation on quantities traded will appear ?
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A. bigger

B. smaller

C. longer

D. sooner
5423. If foreign manufacturing costs and profit margins in response to a depreciation in the U.S dollar the effect of these actions is to ?
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A. shorten the amount of time in which the depreciation leads to smaller trade surplus

B. shorten the amount of time in which the depreciation leads to smaller trade deficit

C. lengthen the amount of time in which the depreciation leads to smaller trade deficit

D. lengthen the amount of time in which the depreciation leads to smaller trade surplus

5424. The analysis considers the ability of domestic and foreign price of adjust to devaluation in the short run ?
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A. pass through

B. currency contract period

C. absorption

D. adjustment mechanism

5425. Suppose that the United Kingdom devalues the pound if both exports and imports are written in terms of pounds then the United Kingdom balance of trade during a currency contract period ?
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A. is unaffected

B. worsens

C. improves

D. falls for a while before increasing

5426. The analysis considers the ability of domestic and foreign price of adjust to devaluation in the short run ?
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A. currency contract period

B. absorption

C. adjustment mechanism

D. pass through
5427. The shift toward imperfectly competitive markets in domestic and international trade the concept of ?
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A. official exchange rates

B. complete currency pass through

C. trade adjustment assistance

D. exchange arbitrage

5428. In essence people need government because________________?
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A. they live in groups and need a degree of order

B. of their competitive nature

C. they have not reached a sufficient amount of civilization to exist without it

D. brute force is not sufficient keep them in line

5429. In order for power to be legitimate a government must have_____________?
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A. a strong army

B. a charismatic leader

C. legitimate authority

D. the ability to coerce agreement

5430. Durkheim,s analysis suggests that so-called primitive people__________________?
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A. invented the concept of gods

B. though they were gods

C. saw themselves as clans of animals

D. projected their human ideals and personified them as gods
5431. The first years of marriage_____________?
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A. all of the above

B. offer the most satisfaction

C. require the most adjustment

D. are the most difficult

5432. Religious beliefs are often contained in_______________?
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A. all of the above

B. creeds

C. articles of faith

D. doctrines

5433. Which perspective assumes that the state speaks with one voice and has one policy ?
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A. globalism

B. pluralism

C. realism

D. all of the above

5434. My country right or wrong is an example of_______________?
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A. a reasoned approach to detente

B. nationalism

C. an internationalist world view

D. legal-rational thinking

5435. The majority of the human population lives in________________?
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A. Africa

B. New York

C. Pacific Islands

D. Eurasia
5436. The urban crisis________________?
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A. is well on the way to being resolved

B. has been reduced by urban renewal

C. has been intensified by gentrification

D. is intensified by the move of the middle class to the suburbs
5437. Conditions associated with long-term marriages include_________________?
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A. all of the above

B. a womens family income

C. whether the women came from an intact family

D. a womens age at marriage

5438. An ecological city is___________________?
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A. the central city suburbs and satellites

B. one with a recycling enter

C. where urban planning originates

D. one containing a clean water supply for the area

5439. Antarctica is occupied by several nations together because no one nations has________________?
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A. interest in its resources

B. the power to take it over

C. the desire to rule it

D. sovereignty over it
5440. From the point of view of Catholicism Protestantism began as a(n)________________?
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A. charismatic movement

B. cult

C. fundamentalist movement sect

D. ecclesia

5441. Which of the following nations can be trusted NOT to explode atomic bombs on the surface of the earth ?
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A. China

B. none of these

C. Russia

D. France

5442. The transition from a charismatic religious leaders direct example to routine procedures and observances is called______________?
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A. institutionalization

B. denomination

C. bureaucratization

D. differentiation

5443. In animism_______________?
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A. all of the above

B. animals are worshipped as gods

C. spirits are worshipped as disembodied humans

D. spirits are thought to acquire various forms

5444. The processes of cultural change include______________?
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A. nationalism and patriotism

B. conformity and obedience

C. conservatism and reactionism

D. innovation and invention

5445. The United States Canada Northern and Western Europe among other areas are________________?
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A. in the first stage of the demographic transition

B. in the third stage of the demographic transition

C. threatened by under population

D. still trying to curb population growth

5446. Studies have found that__________________?
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A. all of the above

B. not all abused children go on to abuse their own children

C. the more severe the abuse the more extreme the later psychiatric symptoms

D. victims of child abuse become troubled adults

5447. The manifest functions of government include________________?
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A. the provision of institutionalized social control

B. the enlargement of the administrative elite

C. the formation of party machines

D. the protection of the interests of the power elite
5448. Nation states emerged in Europe in the historical period of______________?
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A. the Renaissance

B. the Protestant Reformation

C. the Hundred Years War

D. the Middle Ages

5449. The family-and particularly marriage-binds its members through_______________?
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A. interfaith competition

B. educational functions

C. class conflict

D. legal and economic bonds
5450. The most fundamental function of the family is_________________?
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A. keeping members sheltered

B. ensuring the reproduction of the species

C. feeding its members

D. providing sex education