economics MCQs – Page 118

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 Review each marked answer and report any item that may be outdated or unclear.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

2341. American labor unions have maintained that U.S multinational corporations have been ?
0

A. exporting American jobs by investing overseas

B. importing cheap foreign workers by shifting U.S investment overseas

C. exporting American jobs by keeping investment in the U.S

D. importing cheap foreign workers by keeping U.S investment at home

2342. The theory that explains business cycles by the dynamic interaction of consumption and investment demand is the ?
0

A. sun spot theory

B. Solow theory

C. New classical theory

D. multiplier accelerator model

2343. The most important source of wage differentials are ?
0

A. unionization

B. relative danger

C. skills

D. regional variation

2344. All of the following would tend to increase a workers wage except ?
0

A. having a greater amount of natural ability

B. doing a job that is fun

C. working harder

D. Working the night shift

E. more education

2345. If the economy is in the recessionary phase of the business cycle, aggregate demand ___ unemployment ____ inflation ___ and the current account of the balance of payments is likely to move towards ____?
0

A. is static; low; rises; deficit

B. falls; rises; falls; surplus

C. rises; falls; rises; deficit

D. falls; falls; falls; surplus

2346. If the real wage is too high in the labour market ?
0

A. It will automatically adjust in the short run to bring equilibrium

B. The quantity demanded of labour is higher than the quantity supplied

C. The quantity demanded of labour is lower than the quantity supplied

D. The quantity demanded of labour equals the quantity supplied

2347. Top footballers tend to earn more than lecturers because ?
0

A. lecturers are lazy

B. footballers give more entertainment

C. top footballers are relatively scarce in relation to lecturers

D. the labor markets are imperfect

2348. Country B has the comparative advantage in ?
0

A. Wine

B. Beer

C. Both wine and beer

D. Neither wine nor beer

2349. The high foreign exchange value of the U.S dollar in the early 1980s can best be explained by ?
0

A. market expectations of rising inflation in the United States

B. American tourists overseas finding costs increasing

C. additional investment funds made available from overseas

D. lack of investor confidence in U.S fiscal policy

2350. The public Sector Net Cash Requirement (PSNCR) is ?
0

A. A measure of the countrys budget position

B. A measure of the governments monetary stance

C. A measure of the countrys total debt

D. A measure of the countrys trade position

2351. If the exchange rate between Swiss francs and British pounds is 5 francs per pound, then the number of pounds that can be obtained for 200 francs equals ?
0

A. 60 pounds

B. 80 pounds

C. 20 pounds

D. 40 pounds

2352. The agreements that were reached at the Bretton Woods conferences in 1944 established a system ?
0

A. That prohibited governments from intervening in the foreign exchange markets

B. of floating exchange rates determined of the supply and demand of one nations currency relative to the currency of other nations

C. in which the value of currencies was fixed in terms of a specific number of ounces of gold, which in turn determined their values in international trading

D. of essentially fixed exchange rates under which each country agreed to intervene in the foreign exchange market when necessary to maintain the agreed upon value of its currency

2353. In order for a market to support superstars it must have which of the following characteristics ?
0

A. Every customer must be willing to pay an enormous amount for the product and the product must be a necessity

B. Every customer must want the good supplied by the best producer and the technology must exist for the best producer to supply every customer at low cost

C. Every customer must be indifferent to the price they pay, and the seller must be a competitor in the market for the product

D. It must be involved in professional athletics

2354. Which financial instrument provides a buyer the right to purchase or sell a fixed amount of currency at a prearranged price, within a few days to a couple of years ?
0

A. cable transfer

B. letter a credit

C. foreign currency option

D. bill of exchange

2355. In autarky equilibrium ?
0

A. there is no trade

B. Production equals consumption

C. All of the above

D. Exports equal imports