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
551. What is Euro ?
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A. Deposit outside ones home country but in the home country currency

B. European currency unit, introduced on January 1, 1999

C. Both of them

D. None of them

552. The term liquidate refers to pay off a debt, a claim or an obligation or to settle the affairs by determining liabilities and applying assets to their discharge. What is also converted by the term?
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A. To convert assets into cash

B. Abolish

C. Both of them

D. All of them

553. Economic development is measured on the basis of ?
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A. Increase in personal income

B. Increase in real GNP

C. Increase in nominal GNP

D. Increase in government revenue

554. Exchange rate of which of the following currencies falls because of persistent balance of payments deficit ?
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A. Soft currency

B. Hard currency

C. Gold currency

D. Silver currency

555. Currency that is expected to drop in value relative to other currencies is called ?
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A. Local currency

B. Lime currency

C. Soft currency

D. Cold currency

556. A detailed, itemized list, report or record or things in ones possession or the process of making such a list, or items listed in this list, or the stock, is called inventory. Which of the following is also inventory ?
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A. An evaluation or a survey, as of abilities or resources

B. List of stock a company own

C. Total obligation of a firm

D. List of assets of a corporation

557. Compared to what occurred under free trade, Mexicos producer surplus ____ and consumer surplus ____ as a result of the subsidy Use the figure that you have plotted to calculate the amounts ?
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A. decreases, increases

B. increases, increases

C. increases, decreases

D. decreases, decreases

558. Mention an international trade policy competitive devaluation and increased protective barriers that one country institute to gain at the expense of its trading partners ?
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A. Protectionist policy

B. Beggar-thy-beighbour

C. Nationalist policy

D. Domestic policy

559. The Liquidity Trap condition occurs at a_______________?
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A. Very low rate of interest

B. Low rate of interest

C. High rate of interest

D. Very high rate of interest

560. The U.S has granted China permanent most favored nation treatment (normal trade relations) This means that the tariff schedules which apply to U.S imports from china ?
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A. have lower tariff rates than the rates that apply to other countries to which the U.S grants most favored nation treatment

B. have lower tariff rates than the rates that apply to any other country sending goods to the United States

C. have tariff rates equal to zero suggesting a free trade policy for the United States

D. have tariff rates that are identical to the rates that apply to other countries to which the U.S grants most-favored nation treatment
561. Which of the following organizations primarily provides long-term loans to developing countries to help them develop their infrastructure such as schools hospitals and roads ?
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A. International Monetary Fund

B. Council on Foreign Relations

C. Organization of petroleum Exporting Countries

D. World Bank
562. What is referred by the hard currency ?
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A. Any currency backed by gold or silver bullion rather than credit

B. Stable currency value of which does not fluctuate greatly

C. Both of them

D. None of them

563. When the stock market is rising it is ?
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A. Bullish

B. Rising up

C. Hottest

D. Bearish

564. Gross National income is always more than Net National income because it includes ?
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A. Indirect taxes

B. Foreign income

C. Direct taxes

D. Capital consumption allowance
565. Depression is a drastic decline in a national of international economy Its characteristic is ?
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A. Decreasing business activity

B. All of these

C. Falling prices

D. Unemployment

566. Total number of adults currently employed or actively seeking work in all economic sectors is known as ?
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A. Labor potential

B. All of them

C. Work force

D. Labor force
567. Two countries can gain from foreign trade if ?
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A. Cost ratios are different

B. Tariff rates are different

C. Price ratios are different

D. A and C of above
568. Government granted monetary assistance to a person or a group in support of an enterprise regarded as being in public interest. This is called subsidy. Point out the statement which is also a subsidy ?
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A. Financial assistance given by one person or government to another

B. Financial assistance given to aged people

C. Financial assistance given to poor people

D. Financial assistance given to small companies

569. Gross Domestic Product (GDP) is__________________?
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A. Value of all economic activity with in a nations border

B. Economic activities of federal government

C. None of these

D. Economics output of a country

570. The result of antidumping tariffs is to ?
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A. impose a price ceiling on foreign price in the importing country

B. impose a price floor on foreign prices in the importing country

C. decrease producer surplus in the importing country

D. increase consumer surplus in the importing country

571. Developing countries that emphasize the production of raw materials or agricultural goods may realize a long-run deterioration in the international terms of trade because of ?
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A. declines in the supplies of these products on world markets

B. sluggish demand for these products in advanced countries

C. relatively low import tariffs maintained by advanced countries

D. highly elastic demand for these products in advanced countries

572. With whom would you associate the following quote The business of business is business ?
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A. Milton Friedman

B. Adam smith

C. Karl Marx

D. Alfred Marshal

573. Term the authorization whether written or electronic, that shareholders votes may be cast by others ?
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A. Proxy vote

B. Absentia vote

C. Casting vote

D. Remote vote

574. Hong Kong and South Korea are examples of developing nations that have recently pursued ________ industrialization policies?
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A. import substitution

B. export promotion

C. multilateral contract

D. commercial dumping

575. What would cause a countrys exchange rate to fall ?
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A. An increased inflow of capital

B. Increased demand for its imports

C. None of the above

D. An increases demand for its exports

576. Concerning dumping, which of the following is true ?
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A. U.S firms can obtain protection from foreign dumping, even though this protection tends to harm overall U.S welfare

B. dumping can never be a profit-maximizing strategy for U.S firms to pursue

C. U.S firms rarely if ever, engage in distress dumping or persistent dumping

D. predatory dumping represents the most common form of dumping by U.S firms

577. Which is most likely to cause a more even distribution of income ?
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A. An increase in progressive taxation

B. An increase in the rate of inflation

C. An increase in managers salaries

D. An increase in indirect taxes

578. Membership in the World Trade Organization for china ?
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A. was achieved in the early 1950s

B. has been a matter of low priority for the Chinese government

C. has had negligible effect on trade between china and the United States

D. has been opposed by a number of labor and human rights organizations in other countries
579. How is termed equal rights of trade of trade without giving monopolies or preferences to an individual country ?
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A. Open door market

B. Open door country

C. Open sky market

D. Free economy

580. The arrangement where goods imported from trading partners in the developing world are subject to lower tariff rates than goods from other countries is referred to as ?
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A. Generalized System of Preferences

B. offshore assembly provisions

C. most favored nation status

D. normal trade relation status

581. What is called a check that is returned by a bank because it is not payable, usually because of insufficient funds ?
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A. Bounce

B. Grossed

C. Refused

D. Return

582. Term a countrys decision to tie the value of its currency to another countrys currency gold or a basket of currencies ?
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A. Fixed exchange rate

B. Relative exchange rate

C. Knotted exchange rate

D. Pagged exchanged rate

583. What is called an internet strategy of dealing directly with business rather than consumer ?
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A. Step by step

B. Indirect contact

C. B2B

D. Trickle down

584. Which of the following can be used for check inflation temporarily ?
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A. None of these

B. increase in wages

C. Decrease in money supply

D. Decrease in tax
585. Unlike a black market, what is called a system of secretly selling or trading commodities which is not necessarily illegal ?
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A. Open market

B. White market

C. Grey market

D. Red market

586. What is called a countrys total financial obligations to the rest of the world ?
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A. National liabilities

B. Debt burden

C. Total debt

D. External debt
587. Which of the following is a price that is equal to the face value of a security ?
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A. At Equilibrium

B. None of them

C. Balanced

D. At Par
588. What does mean by Emerging Markets ?
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A. Financial markets of developing economies

B. Financial markets of Asian economies

C. Financial markets of East Europes economies

D. Financial markets of Latin America

589. What is called when a private company first offers shares to the public market and investors ?
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A. Coming public

B. Public offering

C. Public floating

D. going public
590. The argument that U.S current account deficits cause net job losses for Americans ?
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A. focuses only on the overall economy and is thus always true

B. fails to recognize that a current account deficit is matched by an equal inflow of foreign funds which finances employment increasing investment spending

C. is true by definition in all possible circumstances

D. is supported by recent U.S history

591. The policy cartel on debt reduction refers to the_______________?
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A. None of the above

B. World Bank requiring LDCs seconded by a DC to get loan reduction

C. loan denial to crisis-stricken highly indebted countries

D. screening of debtors based on their regional location

592. Adam Smith advocated ?
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A. #NAME?

B. laissez faire

C. competitive markets

D. the invisible hand

593. Which of the following statements is True ?
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A. A country runs a current account surplus if it sells more of its assets abroad than it buys abroad

B. A country runs a capital account deficit if it imports more than it exports

C. The overall sum of all the entries in the balance of payments must be positive

D. If the current account is in surplus the capital account must be in deficit
594. Fundamentalists want the IMF to lend to crisis-stricken countries on condition that they undertake fundamental structural reforms in banking Joseph Stiglitz however thinks it is______________?
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A. impractical for the IMF to loan short term as reforms can only be effective in the middle to long run

B. None of the statements above is correct

C. crucial that the IMF intervene in the reform of fiscal policy of the country and not the monetary policy

D. unrealistic for IMF to intervene in the financial markets of poor countries during the crisis

595. If the sacrifice ratio is five, a reduction in inflation from 7 percent to 3 percent would require ?
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A. a reduction in output of 5percent

B. a reduction in output of 15 percent

C. a reduction in output of 20 percent

D. a reduction in output of 35 percent

596. The movement to free international trade is most likely to generate short-term unemployment in which industries ?
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A. Industries that sell to domestic and foreign buyers

B. Industries in which there are neither imports nor exports

C. Imports competing industries

D. Industries that sell to only foreign buyers

597. An index of prices of all domestically produced goods in the economy is the ?
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A. Producer price index (PPI)

B. GDP deflator

C. Consumer price index (CPI)

D. wholesale price index (WPI)

598. Real GNP measures income ?
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A. including externalities

B. including non-market activities

C. adjusted for inflation

D. including tax evasion

599. A demand switching policy could be ?
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A. Tariffs

B. Higher income tax

C. Reduced government spending

D. Higher interest rates

600. A significant portion of actual world trade patterns results from ?
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A. The industrial policies of governments

B. different factor endowment between countries

C. the different tastes and preferences of people in different countries

D. different sizes of the countries