economics MCQs – Page 115

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 Review each marked answer and report any item that may be outdated or unclear.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
2281. A congested toll road is ?
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A. a common resource

B. a public good

C. a good produced by a natural monopoly

D. a private good
2282. Differences in wages that result from differences in working conditions are known as ?
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A. job differentials.

B. occupational differentials

C. compensating differentials

D. search differentials

2283. Rawlss miximin criterion does not mean that there should be redistribution so as to equalise everyones incomes in society because ?
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A. such redistribution would amount to confiscation of honestly earned income from higher earners and so would be unjust.

B. such redistribution would not maximize the total income of all members of society

C. Such redistribution would mean that those who worked hard were no better off than those who were lazy and this would be unfair.

D. Such redistribution would remove the incentive to work hard, so societys total income would fall, and so the least well off person would be worse off than they could be under a system in which there was some inequality income.
2284. Demand for labour is more likely to be wage inelastic if ?
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A. It is easy to replace labour

B. Capital is a good substitute for labour

C. Wages are a small proportion of total costs

D. Demand for the final product is price elastic

2285. Rawlss suggestion that policy should be directed at maximizing the welfare of the least well off person in society is derived from ?
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A. the idea that people should consider policy as if behind a veil of ignorance as to what their circumstances might be in society, and the idea that as long as there is no theft then there is no need for governments to intervene and redistribute income.

B. the idea that people should consider policy as if behind a veil of ignorance as to what their circumstances might be in society, and the idea that people will then be particularly concerned about the possibility that they might find themselves at the bottom of the income distribution

C. the idea that people a veil of ignorance as policy as if behind a veil of ignorance as to what their circumstances might be in society, and the ignorant people should be looked after

D. the idea that everyone in society should have an equal income

2286. TO reduce cyclical unemployment the government might ?
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A. Increase the budget surplus

B. Reduce government expenditure

C. Reduce interest rates

D. Increase the balance of payment deficit

2287. When did Pakistan launched its first space satellite Badr I largely designed and fabricated by SUPARCO ?
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A. 10-Aug-91

B. 12-Sep-92

C. 16-Oct-89

D. July 16, 1990
2288. In the short run unemployment may fall below the natural rate of unemployment if ?
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A. Nominal wages have risen more than inflation

B. Nominal wages have risen less than unemployment

C. Nominal wages have risen at the same rate as inflation

D. Nominal wages have risen less than inflation

2289. Identify below what does NOT affect productivity ?
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A. Private investment in new physical caital

B. Innovation and the application of new technology

C. The phase of the lunar cycle

D. Public investment in education

2290. A fall in demand for labour is likely to lead to ?
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A. A higher equilibrium wage and lower quantity of labour

B. A lower equilibrium wage and lower quantity of labour

C. A lower equilibrium wage and higher quantity of labour

D. A higher equilibrium wage and higher quantity of labour

2291. If employees cannot accept a job because of the costs of moving this is known as ?
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A. Geographical immobility

B. Cyclical unemployment

C. Occupational immobility

D. Structural immobility

2292. All of the following are benefits of the single market except ?
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A. it intensified competition

B. it is easier to book holidays in member countries

C. economies of scal

D. it allows countries to exploit their comparative advantage, more fully

E. firm could more readily exploit

2293. In 1989, the CPI was 124.0 in 1990, it was 130.7 What was the rate of inflation over this period ?
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A. You cant tell without knowing the base year

B. 30.7 percent

C. 5.4 percent

D. 5.1 percent

2294. The best way to achieve economic growth is to ?
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A. increase personal consumption

B. save more

C. reduce taxation

D. increase government spending

2295. A current account deficit means that a country may ?
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A. increases its foreign currency reserves

B. reduce its stock of foreign assets

C. increase its stock of foreign assets

D. increases its savings

2296. A positive externality affects market efficiency in a manner similar to a ?
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A. private good

B. public good

C. rival good

D. common resource

2297. Which of the following is not part of a workers human capital ?
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A. experience

B. education

C. effort

D. on the job training

E. all of these answers are parts of a workers human capital

2298. Which of the following are potential solutions to the problem of air pollution?
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A. Auctions off pollution permits.

B. all of these answers

C. Regulate the amount of pollutants that firms can put in the air

D. Grant right of the clean air to citizens so that firms must purchase the right to pollute

2299. The Marginal Revenue Product is ?
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A. Downward sloping due to the law of diminishing returns

B. Downward sloping due to the law of supply

C. Upward sloping due to the law of demand

D. Upward sloping due to the law of marginal utility

2300. An increase in costs will ?
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A. Reduce the natural rate of unemployment

B. Increase the productivity of employees

C. Shift aggregate supply

D. Shift aggregate demand