economics MCQs – Page 114

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 Review each marked answer and report any item that may be outdated or unclear.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

2261. The multiplier accelerator model assumes ____ depends on ______?
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A. stock building interest rates

B. consumption expected future profits

C. investment expected future profits

D. investment, interest rates

2262. Which of the following statements is correct ?
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A. The nominal interest rate is the inflation rate minus the real interest rate

B. The nominal interest rate is the real interest rate minus the inflation rate.

C. The real interest rate is the nominal interest rate minus the inflation rate

D. none of these answers

2263. A Gini coefficient of one means that ?
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A. all the income is received by the top 20% of the income distribution

B. income is distributed equally

C. the income is split equally between the top 20% and the rest of the distribution.

D. one family has all the income and every one else has nothing.

2264. Real business cycle theories suggest that _____ to correct departures from the desired growth path?
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A. There is a role for stabilizing output ever the business cycle

B. There is a role for fiscal policy

C. There is a role for monetary policy

D. There is a role for supply-side policy

2265. The downward sloping marginal physical product of labor is the firms ?
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A. Supply of labor

B. ginal revenue product of labor

C. marginal cost of labour

D. Short-run demand curve for labor

2266. The biggest Industrial unit in public sector is ?
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A. Pakistan Steel Mili

B. Telephone Industry of Pakistan

C. Karachi Shipyard

D. State Cement

2267. Occupational immobility of labour occurs if ?
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A. People do not have the right skills to work

B. People lack information

C. People do not want to work

D. People cannot afford to move location

2268. Which of the following government policies would fail to lower the unemployment rate ?
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A. Establishing worker training Programs

B. Establishing employment agencies

C. Reducing unemployment benefits

D. Establishing right-to-work laws

E. Raising the minimum wage

2269. If the minimum wage is set above the equilibrium wage rate, then another thing unchanged ?
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A. There will be equilibrium in the labour market

B. There will be excess supply in the labour market

C. More people will be employed

D. There will excess demand in the labour market

2270. When government employ cost-benefit analysis to help them decide whether to provide a public good, measuring benefits is difficult because ?
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A. there are no benefits to the public since a public good is not excludable

B. the benefits are infinite because a public good is not rival and an infinite amount of people can consume it at the same time

C. one can never place a value on human life or the environment

D. respondents to naires have little incentive to tell the truth.

2271. A reservation wage is the ?
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A. tip necessary to get a waiter to reserve a table

B. minimum wage the worker is willing to accept

C. competitive equilibrium wage.

D. Maximum wage the firm is willing to pay

2272. The poverty trap refers to ?
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A. a situation in which those receiving state benefits are discriminated against by employers and so find it more difficult to find jobs.

B. a situation in which workers are unable to find jobs.

C. a situation in which those receiving state benefits may be almost no better off if they choose to work more to earn more income for themselves and their families because doing so will mean they have to pay back the benefits they have previously received

D. a situation in which those receiving state benefits may be almost no better off if they choose to work more to earn more because doing so will reduce the amount of benefit income to which they are entitled and increase the amount to tax

2273. The business cycle describes fluctuations in output around the?
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A. boom

B. recession

C. trend path of output

D. short-run fluctuations in output

2274. Utilitarianism suggests that the government should choose policies that maximize the total utility of everyone in society by ?
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A. allowing each individual to maximize their own utility without interference from the government

B. redistributing income from rich to poor because due to the diminishing marginal utility of income, taking a pound from the rich reduces their utility by less than the gain in utility generated by giving a pound to the poor

C. istributing income from rich to poor because this would maximize the well-being of the worst-off person in society

D. redistributing income from rich to poor because this is what the members of society would choose to do if they were behind a veil of ignorance

2275. VAT is a good example of which kind of tax ?
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A. specific

B. Excise duty

C. Direct

D. Ad valorem

2276. Policies to encourage productivity do not include ?
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A. encouraging innovation

B. building more retail outlets

C. encouraging risk-taking

D. encouraging R & D