economics MCQs – Page 112

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 Review each marked answer and report any item that may be outdated or unclear.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

2221. If output price is constant, the marginal revenue product of labour curve will have the same shape as the ?
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A. total variable cost curve

B. marginal cost curve

C. total product of labour curve

D. marginal product of labour curve

2222. Land will be allocated between competing uses so that ?
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A. farming gets priority

B. industry gets priority

C. the equilibrium rental rate equilibrium total demand with supply

D. housing gets priority

2223. The marginal revenue product of labour is ?
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A. the additional revenue a firm earns by employing on additional unit of labour

B. the marginal product of capital times the price of labour.

C. the additional revenue the firm makes by selling one unit of labour.

D. the additional profit a firms earns by employing one additional unit of labour

2224. The effect of inflation on the price competitiveness of a countrys products may be offset by ?
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A. A depreciation of the currency

B. An appreciation of the currency

C. Lower inflation abroad

D. A revaluation of the currency

2225. The golden-rule saving rate is the rate of saving that ?
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A. gets the highest rate of interest

B. maximizes the level of long-run consumption

C. maximizes the level of long-run investment

D. maximizes human capital

2226. Multinational corporations ?
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A. None of the above

B. always produce primary goods

C. always produce manufactured goods

D. produce primary goods or manufactured goods

2227. Refer to Figure 1 The labour fouce is ?
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A. 92.3 million

B. 98.0 million

C. 134.0 million

D. None of theses answers

2228. Demand pull inflation may be caused by ?
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A. A reduction in interest rate

B. An increase in costs

C. A reduction in government spending

D. An outward shift in aggregate supply

2229. The impossibility of negative gross investment provides a ______ to fluctuation in ______?
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A. ceiling, stock building

B. ceiling, capital prices

C. floor, the capital-output ratio

D. floor, output

2230. Firms undertake multinational operations in order to ?
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A. obtain necessary factor inputs

B. All of the above

C. hire low-income workers

D. manufacture in nations they have difficult exporting to

2231. Vertical equity holds that ?
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A. those with equal ability to pay should bear unequal burdens

B. those who benefit the most from government service should bear the higher tax burden

C. those will equal ability to pay should bear equal tax burdens.

D. those with greater ability to pay should pay more

2232. The Gini coefficient is ?
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A. the ratio of the percentage of total income received by the top 20% of families to the percentage of total income received by by the bottom 20% of families

B. the most common way of representing the income distribution graphically

C. a commonly used measure of the degree of inequity in an income distribution

D. a commonly used measure of the degree of inequality in an income distribution

2233. If the nominal interest rate is 7 percent and the inflation rate is 3 percent, then the real interest rate is ?
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A. 4 percent

B. 10 percent

C. 3 percent

D. 21 percent

E. -4 percent

2234. Accusations of American labor unions against U.S multinational firms include all of the following except ?
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A. export jobs by shifting investment overseas

B. export jobs by shifting technology overseas

C. operating at output levels where scale economies occur

D. enjoy unfair advantage in taxation

2235. An example of an indirect tax is ?
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A. income tax

B. a tax on profits.

C. VAT

D. inheritance tax

2236. A tax whose burden expressed as a percentage of income, falls as income increases is a ?
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A. regressive tax

B. progressive tax

C. proportional tax

D. benefits received tax

2237. Current anti-poverty programs discourage work because ?
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A. benefits are reduced at such a high rate when recipients earn more income that there is little or no incentive to work once one is receiving benefits.

B. in order to be eligible for benefits a recipient cannot have a job

C. they make recipients more comfortable than most middle-class citizens.

D. anti-poverty programs attract naturally lazy people to begin with.

2238. 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. not be affected

B. appreciate

C. fluctuate more than if interest rates were high

D. depreciate

2239. An increase in the wage rate ?
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A. is illegal in a free market

B. will cause a shift in the demand for labour

C. Will decrease total earning if the demand for labour is wage elastic