economics MCQs – Page 116

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 Review each marked answer and report any item that may be outdated or unclear.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

2301. The neoclassical theory of growth identifier the steady state rate of growth as the ____ just sufficient to keep _____ constant while labor grows?
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A. saving, investment

B. investment capital per person

C. capital per person, productivity

D. labor growth, output

2302. The migrations of electricians from low-paying nations to high-paying nations is most likely to be challenged by ?
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A. electrician employers in the high-paying nations

B. electrician unions in the high-paying nations

C. electrician unions in the low paying nations

D. electricians who stay in the low paying nations

2303. The Phillips curve shows the relationship between inflation and what ?
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A. The rate of price increase

B. Unemployment

C. The balance of trade

D. The rate of growth in an economy

2304. Which of the following is likely to generate a compensating differential ?
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A. One employee is more attractive than another

B. One employee is more educated than another

C. All of these answers generated

D. One employee works harder than another

E. One employee is willing to work the nightshift while another is not.

2305. Potential output can be increased by ____ or by ______?
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A. increasing the use of capital increasing the use of labour

B. increasing the use of labor increasing the use of land

C. increasing the use of all inputs, technical advances

D. increasing the use of land increasing the use of capital

2306. Mariam earns more than Seamus and she came by her income fairly and honestly which of the following political philosophies would argue against the redistribution of income from Mariam to Seamus ?
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A. utilitarianism

B. none of these answers

C. libertarianism

D. all of these answers

2307. Economists have hypothesized that the widening gap between the wages of unskilled workers and skilled workers may be due to ?
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A. decrease in the demand for unskilled workers are more poorly educated

B. increase in the number of unskilled workers available due to immigration into the UK.

C. increase in the number of unskilled workers available because workers are more poorly educated

D. decrease in the demand for unskilled workers because of increases in technology and increases in international trade

2308. According to the Phillips curve unemployment will return to the natural rate when ?
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A. Inflation is higher than the growth of nominal wages

B. Nominal wages are growing faster than inflation

C. Nominal wages are equal to expected wages

D. Real wages are back at equilibrium level

2309. The term rent as it is used by economists. refers to ?
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A. the amount paid each year by a tenant for an apartment

B. the profit earned by the owner of any housing unit.

C. the return to any factor of production that is in fixed supply

D. any profit earned by stockholders when they sell their stock

2310. Sector shifts tend to raise which type of unemployment ?
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A. Frictional Unemployment

B. Unemployment due to efficiency wages

C. Unemployment due to unions

D. Structural Unemployment

2311. Suppose your income rises from Rs19,000 to Rs31,000 while the CPI rises from 122 to 169 Your standard of living has likely ?
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A. fallen

B. stayed the same

C. You cant tell without knowing the base year

D. risen

2312. Unemployment benefits may increase the unemployment rate because unemployment benefits ?
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A. reduce the cost of job search

B. encourage people to quit their jobs

C. enable people to quit searching for work

D. reduce the benefits of additional job searching

2313. Economic growth is important because ?
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A. People want higher incomes and more consumer goods.

B. People want less crime

C. People want to be happier

D. People want a better environment

2314. Which of the following statements about efficiency wage theory is true ?
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A. Paying above the competitive equilibrium wage tends to cause workers to shirk their responsibilities

B. Paying the lowest possible wage is always the most efficient (Profitable)

C. Firms do not have a choice about whether they pay efficiency wages or not because these wages are determined by law

D. Paying above the competitive equilibrium wage may improve worker health lower worker turnover improve worker quality and increase worker effort

2315. A good produced by a natural monopoly is ?
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A. rival but not excludable

B. neither rival nor excludable

C. not rival but excludable

D. both rival and excludable

2316. Economic growth may depend upon _____ and _____?
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A. Population age distribution, education

B. Population growth technical progress

C. Population growth education

D. Population size, x-efficiency

2317. The growth path resulting from technological progress for a given saving rate is known as the ?
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A. teady state growth path