economics MCQs – Page 113

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 Review each marked answer and report any item that may be outdated or unclear.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
2241. Multinational corporations face problems since they ?
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A. cannot benefit from the advantage of comparative advantage

B. can only invest at home but not overseas

C. can only invest overseas but not at home

D. may raise political problems in countries where their subsidiaries operate
2242. Less demand in the economy may increase unemployment; this may lead to less spending which may reduce demand further. This is called ?
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A. The downward multiplier

B. The upward accelerator

C. The upward PPF

D. The downward mpc

2243. If workers and firms agree on an increase in wages based on their expectations of inflation and inflation turns out to be more than they expected ?
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A. firms will gain at the expense of workers.

B. Workers will gain at the expense of firms

C. neither workers nor firms will gain because the increase in wages in fixed in the labor agreement

D. none of these answers

2244. In a competitive labour market firms will hire labour up to the point where the marginal revenue product of labour equals ?
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A. total labour cost

B. the marginal product

C. the wage rate

D. the price of the product

2245. Supply of land in a given use ?
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A. is perfectly elastic since there is fixed amount of land

B. is perfectly inelastic since there is a fixed amount of land

C. will be upward sloping because as land becomes more valuable in once use, the amount of land made available for that use will increase

D. will be perfectly inelastic in the long run. but upward sloping in the short run

2246. The natural rate of unemployment is likely to fall if ?
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A. More training is available for the unemployed

B. Geographical immobility increases

C. Income tax increases

D. unemployment benefits increase
2247. The record of countrys transfers of land inter-government payments and money sent by migrants to and from abroad is called its ?
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A. capital account of the balance of payments

B. financial account of the balance of payments

C. balance of payments

D. balance of payments on current account

2248. Permanent income is ?
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A. wages fixed by a union or other labour contract

B. a persons normal or average income

C. none of these answers

D. equal to the minimum wage

E. Social Security income of the elderly and disabled

2249. If British residents want more French francs to purchase more French cloths other things equal, then the equilibrium value of the pound against the French franc will ?
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A. fluctuate

B. not change

C. fall

D. rise

2250. perfect international capital mobility suggests that international funds will be responsive to ________ differentials?
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A. tax

B. current account

C. interest rate

D. price

2251. Which one of the following types of Unemployment results from the wage being held above the competitive equilibrium wage ?
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A. Structural unemployment

B. None of these answers

C. Cyclical Unemployment

D. Frictional Unemployment

E. Sectoral Unemployment

2252. In a perfectly competitive labour market firms are wage takers and the marginal cost of labour equals?
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A. The marginal product

B. The marginal revenue

C. The average cost of labour

D. The total cost of labour
2253. Under Which of the following conditions would you prefer to be the borrower ?
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A. The nominal rate of interest is 12 percent and the inflation rate is 9 percent

B. The nominal rate of interest is 5 percent and the inflation rate is 1 percent

C. The nominal rate of interest is 20 percent and the inflation rate is 25 percent

D. The nominal rate of interest is 15 percent and the inflation rate is 14 percent

2254. The Chiniot city is known for its ornate brickwork and ?
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A. wooden work

B. laquer work

C. fire work

D. None of them

2255. The first nuclear power plant was set up in Karachi in ?
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A. 1970

B. 1972

C. 1971

D. 1973

2256. A tax whose burden is the same proportion of income for all households is ?
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A. an equal tax

B. a regressive tax

C. a progressive tax

D. a proportional tax
2257. Because in-kind transfers are not accounted for in standard measures of income distribution the standard measures of income distribution ?
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A. understate the inequality of living standards

B. accurately represent the true inequality of living standards

C. exaggerate the inequality of living standards

D. could exaggerate of understate the inequality of living standards depending on whether the transfers are goods or services.

2258. According to the Office of National Statistics UK, a husband who chooses to stay home and take care of household is ?
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A. A discouraged worker

B. Unemployed

C. Not in the labour force

D. Employed

2259. Housing Benefit is a good example of ?
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A. a means tested cash benefit

B. a benefit in kind

C. none of the above

D. a universal (social insurance based) benefit

2260. Mianwali is important for ?
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A. agriculture

B. wood work

C. irrigation work

D. Embroidery work