economics MCQs – Page 122

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 Review each marked answer and report any item that may be outdated or unclear.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
2421. A depreciation of the dollar will have its most pronounced impact on imports if the demand for imports is ?
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A. Unitary elastic

B. inelastic

C. constant

D. elastic
2422. Relatively low real interest rates in the United States tend to ?
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A. increase the foreign demand for dollars causing the dollar to depreciate

B. decrease the foreign demand for dollars causing the dollar to appreciate

C. decrease the foreign demand for dollars causing the dollar to appreciate

D. decrease the foreign demand for dollars causing the dollar to depreciate
2423. When the price of foreign currency (i.e the exchange rate) is below the equilibrium level ?
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A. an excess demand for that currency exists in the foreign exchange market

B. the demand for foreign exchange shifts backward to the left

C. the demand for foreign exchange shifts outward to the right

D. an excess supply of the currency exists in the foreign exchange market

2424. By financial crowding out economist mean ?
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A. credit rationing

B. government borrowing drives up interest rates

C. what the government borrows cannot be used for private investment

D. Bank of England controls on commercial bank lending

2425. If foreign manufacturing costs and profit margins in response to a depreciation in the U.S dollar the effect of these actions is to ?
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A. lengthen the amount of time in which the depreciation leads to smaller trade deficit

B. shorten the amount of time in which the depreciation leads to smaller trade deficit

C. shorten the amount of time in which the depreciation leads to smaller trade surplus

D. lengthen the amount of time in which the depreciation leads to smaller trade surplus

2426. Economic theory predicts that a currency depreciation will least lead to an improvement in the home countrys trade balance when ?
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A. home demand for imports is elastic and foreign export demand is inelastic

B. home demand for imports is inelastic and foreign export demand is inelastic

C. home demand for imports is elastic and foreign export demand is elastic

D. home demand for imports is inelastic and foreign export demand is elastic

2427. When wealthy alumni provide charitable contributions to their universities to reduce the tuition payments of current students it is an example of ?
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A. a command-and-control policy

B. an attempt to internalize a positive externality

C. a Pigouvian tax

D. an attempt to internalize a negative externality

2428. If the countries were to trade along the lines of absolute advantage ?
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A. A would export X to B

B. B would import Y from A

C. Neither country would want to trade

D. None of the above

2429. In autarky, the relative price of wine, in terms of beer, in country A is ?
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A. 1W = 2B

B. 1W = 1/3B

C. 1W = 3B

D. 1W = 1B

2430. The multiple by which total deposits can increase for every pound increase in reserves is the ?
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A. Money multiplier

B. required reserve ratio

C. banks line of credit

D. liquidity ratio

2431. Complete currency pass through arises when a 10 percent depreciation in the value of the dollar causes U.S?
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A. export prices to rise by 10 percent

B. export prices to fall by 10 percent

C. import prices to rise by 10 percent

D. import prices to fall by 10 percent

2432. Technical advance involves ?
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A. introducing new products modifying production functions creating credit and making profits

B. the development of pure science, invention innovation financing the innovation and the innovations acceptance

C. innovation investment credit creation and economies growth

D. patent management resource gains mature innovation and speculative gains

2433. During the Great Depression workers in DCs who took inferior jobs as a result of being laid off were known as ?
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A. seasonally unemployed

B. disguised unemployed

C. voluntarily unemployed

D. cyclical unemployed

2434. Dynamic gains from trade could result from ?
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A. The stimulus of additional investment spending as market open

B. All of the above

C. Additional competition made possible by the opening of markets

D. Economies of large scale production as markets open

2435. The parable of Riding a Switchback suggest that stabilizing policy ?
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A. is not sufficiently stimulating or contracting the economy at any time

B. is desirable

C. is effective

D. is stimulating or contracting the economy at the wrong times
2436. The gains from international trade are closely related to ?
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A. The labor theory of value

B. All of the above

C. The fact that a country must lose from trade

D. How much the autarky price differs from international terms of trade change
2437. Labor skills are a major component of ?
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A. fertility

B. morbidity

C. mortality

D. population quality
2438. Which of the following is TRUE about gender and business world ?
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A. There are more women than men in U.S business because of the aspirations of U.S girls

B. Businesswomen in India are viewed as naturally stronger, less emotional more socially adept and more rational than businessmen

C. There are relatively few women in U.S business partly because of female socialization

D. LDC businesswomen have a better chance than men of getting credit from bankers and suppliers

2439. The appreciation in the value of the dollar in the early 1980s is explained by all of the following except ?
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A. relatively high real interest rates in the United States

B. confidence of foreign investors in the U.S economy

C. the United States being considered a safe haven by foreign investors

D. relatively high inflation rates in the United States
2440. In the classical model of Ricardo, the direction of trade is determined by ?
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A. Which way the wind blows

B. Physical advantage

C. Absolute advantage

D. Comparative advantage