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
501. A tariff______________?
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A. A and C of above

B. Has no effect on volume of trade?

C. Increase the volume of trade

D. Reduces the volume of trade
502. The period of high inflation and low economic growth is termed as ?
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A. Stagflation

B. Stagnation

C. Take-off stage in economy

D. None of these

503. What is called the advocacy of protecting domestic producers by impeding or limiting the importation of foreign goods and services ?
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A. Protectionism

B. Domestication

C. National interest

D. Localization

504. Large payment to senior employee who is forced into retirement is called ?
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A. Golden shake hand

B. Golden handshake

C. Golden bonus

D. Friendly handshake

505. What occurs when a firms business is terminated Assets are sold, proceeds are used to pay creditors, and any leftovers are distributed to shareholders ?
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A. Bankruptcy

B. Solvency

C. Liquidation

D. Crash

506. Deregulation is the reduction of governments role in ?
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A. Controlling Banks

B. None of them

C. Controlling cooperation

D. Controlling markets
507. The theory of suggests that government can assist domestic companies in capturing economic profits from foreign competitors ?
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A. export promotion policy

B. international dumping

C. countervailing duties

D. Strategic trade policy
508. Keynesian economics is an economic theory of British economist John Maynard. What this theory states ?
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A. A free market is necessary for economic growth and stability

B. Regulation is necessary for economic growth and stability

C. Government intervention is not necessary to ensure economic growth and stability

D. Active government intervention is necessary to ensure economic growth and stability
509. Monoculture is ?
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A. Farming practice of growing a single crop

B. Homogeneous market

C. Homogeneous business

D. Homogeneous Nations

510. What is called the situation in which a debtor remains unable to pay his creditors in full ?
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A. Default

B. Bankruptcy

C. Crash

D. Total loss

511. The cause of inflation is ?
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A. Increase in money supply

B. Increase in money supply and fall in production

C. Fall in production

D. Decrease in money supply and fall in production

512. ________ are quotas that result in a total prohibition of trade?
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A. nontariff barriers

B. embargoes

C. tariff-rate quotas

D. voluntary export restraints

513. According to the law of demand. When ?
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A. Price increased demand increases

B. None of these

C. Price decreases demand decreases

D. Price increase demand decreases
514. Point out the use of the term price fixing ?
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A. Unlawful agreement between manufacturers to set and maintain specified price on typically competing products

B. Artificial setting of price of commodity by government

C. Both of them

D. None of them

515. Trade name is ?
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A. Under which a business firm operates

B. By which commodity service or process is known to trade

C. All of them

D. Used to identify a commercial product or service

516. For the oil-importing countries, the increase in oil prices in 1970s and early 2000s contributed to all of the following except ?
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A. balance of trade deficits

B. improving terms of trade

C. price inflation

D. constrained economic growth

517. Concerning tariff policy, the United States does not charge?
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A. identical tariff rates in products from all countries of the world

B. lower tariff rates on goods from nations with normal trade relation status

C. low or zero tariffs on goods from certain developing countries

D. lower tariff rates on goods from nations with most favored nation status

518. Countervailing duties levied by the U.S government are imposed to offset ?
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A. subsidies granted to foreign firms that export to the U.S

B. buy national policies of foreign government

C. foreign dumping of goods in the U.S

D. stringent environmental regulations of foreign government s

519. Most of developing-country exports consist of ?
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A. labor-intensive agricultural products

B. labor-intensive manufacturing products

C. intermediate products

D. primary products such as tin and bauxite
520. Which of the following is not a function of a commercial bank?
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A. Accepting public deposits

B. Undertaking agency functions

C. Granting loan and advances

D. Banker to the government
521. What is called the tax that is levied on retail price of merchandise collected by retailer ?
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A. Sales Tax

B. General Tax

C. Gross Tax

D. Local Tax

522. The bank established for loans to very small enterprises in Pakistan is called_______________?
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A. SME- Bank

B. Micro Finance Bank

C. First MINI Bank

D. Moderba Bank

523. Economic growth occurs because ?
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A. capital stocks increase

B. new inventions increase productivity

C. All of the above

D. labor forces increase

524. All of the following are fundamental to the World Trade Organization except ?
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A. nondiscrimination in trading relationships

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

C. the prohibition of import quotas and export quotas

D. bilateral tariff reductions to promote trade liberalization
525. Export-led growth strategies tend to emphasize ?
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A. resource allocation based on the principle of comparative advantage

B. resource allocation based on the principle of absolute advantage

C. trade protection for exporting-competing firms

D. trade protection for import-competing firms

526. Of which items chief exporter is Indonesia ?
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A. Sugar

B. Gold

C. Silver

D. Wheat

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

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

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

D. NTBs and tariffs have decreased in relative importance

528. Net investment is___________________?
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A. None of the above

B. Gross investment minus household investment

C. Gross investment minus capital consumption allowance

D. Gross investment minus govt. Investment

529. All of the following are trade problems of developing countries except?
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A. improving terms of trade

B. limited access to the markets of industrial countries

C. highly elastic demand curves for their products

D. unstable export markets

530. Developments in a national economy can affect the outcome of an international financial transaction. What this process is called ?
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A. International economic risk

B. Ultra-country economic risk

C. Country economic risk

D. Outcome risk

531. What can a central bank increase in order to reduce consumer borrowing ?
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A. interest rates

B. None of these

C. commercial bank deposits

D. government spending

E. government bank deposits

532. The situation with increasing unemployment and inflation is terms as ?
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A. Stagflation

B. Galloping

C. Reflection

D. Hyperinflation

533. ________ 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
534. Transfer payments means ?
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A. Bank loans

B. The payment without work

C. Tax payments

D. Payments made to all factors of production

535. Which exchange rate system is characterized by the absence of government intervention ?
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A. Free float

B. Clean float

C. Both of them

D. None of them

536. Devaluation means ?
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A. None of these

B. Converting rupee into gold

C. Making rupee dearer in comparison to some foreign currency

D. Lowering of the value of one currency in comparison of some foreign currency
537. Assume that global recession causes the quantity of tin demanded to decrease by 4 million pounds at each price To maintain the price of tin at the target price you would ?
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A. buy 4 million pounds of tin

B. sell 8 million pounds of tin

C. buy 8 million pounds of tin

D. sell 4 million pounds of tin

538. Which statistical factor is used to convert current currency purchasing power into inflation adjusted purchasing power ?
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A. Inflator

B. Purchasing power parity

C. Deflector

D. Deflation

539. What is called that company which make loans to individuals, while not receiving deposits like a bank ?
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A. Limited company

B. Cooperative company

C. Finance corporation

D. Finance company

540. Malaysia is the chief exporter of ?
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A. Diamond

B. Tin

C. Rubber

D. Jute

541. Poor developing countries typically impose __________ tariffs than rich advanced nations on imports?
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A. higher

B. None of the above

C. about the same height

D. lower

542. P2P is business slang. What does it refer ?
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A. To startups or internet startup

B. Path to profitability

C. Both of them

D. None of them

543. GNP is_______________?
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A. Total monetary transactions in an economy

B. Total spending in an economy

C. The market value of all goods and services produced in an economy

D. Total sales in the economy

544. Which of the following is referred by the Debt retirement ?
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A. The complete repayment of debt

B. To repay debt in easy installments

C. To reschedule debt

D. To write-off debt

545. 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 $30 and its imports equal 30 radios

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

C. The price of radios in Mexico equals $60 and its imports equal 30 radios

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

546. Which country is the chief exporter of jute ?
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A. Bangladesh

B. India

C. Both of them

D. None of them

547. Which of the following is a form of international reserve assets, created by IMF in 1967 whose value is based on a portfolio of widely used currencies ?
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A. International Drawing Right (IDR)

B. Special Drawing Right (SDR)

C. Sure, Drawing Rights (SDR)

D. IMF Drawing Rights (SDR)

548. The effect of the most favored nation (normal trade relations) clause is to ?
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A. eliminate all tariffs between countries

B. increase all tariffs between countries

C. maintain a nondiscriminatory structure of tariffs

D. maintain a discriminatory structure of tariffs

549. Which of the following is an example of government policy that could reduce inflation ?
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A. increasing import duties

B. None of these

C. reducing government expenditure

D. increasing bank lending

550. 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. General Agreement on Tariffs and Trade

B. World Trade Organization

C. Smoot Hawley Organization

D. McKinley Agreement on Trade policy