economics MCQs – Page 124

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 Review each marked answer and report any item that may be outdated or unclear.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
2461. Which exchange rate mechanism calls for frequent redefining of the par value by small amounts to remove a payments disequilibrium ?
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A. managed floating exchange rates

B. crawling pegged exchange rates

C. dual exchange rate

D. adjustable pegged exchange rates

2462. In autarky, when a community maximizes its standard of living its production point is ?
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A. below the production possibility frontier

B. on the production possibility frontier

C. above the production possibility frontier

D. cant tell without more information

2463. Which exchange rate system involves a leaning against the wind|| strategy in which short-term fluctuations in exchange rates are reduced without adhering to any particular exchange rate over the long run ?
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A. pegged of fixed exchange rates

B. adjustable pegged exchange rates

C. managed floating exchange rates

D. free floating exchange rates

2464. Small nations whose trade and financial relationships are mainly with a single partner tend to utilize ?
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A. pegged exchange rates

B. freely floating exchange rates

C. managed floating exchange rates

D. crawling exchange rates

2465. If the exchange rate is 11 Mexican pesos per U.S dollar, then it takes _______ to buy 1 peso?
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A. $1.10

B. $0.0909

C. $0.10

D. $0.28

2466. An externality is ?
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A. the cost that accrues to the seller in a market

B. the benefit that accrues to the buyer in a market

C. The uncompensated impact of one persons actions on the well-being of a bystander

D. the compensation paid to a firms external consultants.

E. none of these answers

2467. Given the foreign currency market for the Swiss franc, the supply of franc slopes upward, because as the dollar price of the franc rises ?
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A. Americas demand for Swiss merchandise rises

B. Switzerlands demand for American merchandise falls

C. Americas demand for Swiss merchandise falls

D. Switzerlands demand for American merchandise rises
2468. Which of the following is not an assumption of Schumpeters stationary state ?
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A. An economy below full employment

B. No savings or technical change

C. Perfect competition

D. No entrepreneurial function is required

2469. Capitalism is an economies system ?
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A. that originated in the United States in the 19th Century

B. based on government intervention in the means of production

C. Where private owners of capital make decisions based on profit

D. that dominated developing economies in the 19 Century

2470. Competitive markets tend to ?
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A. increase labour market discrimination because bigoted employers can charge any price they want in a competitive market to cover the cost of their discrimination

B. reduce labour market discrimination because non-discrimination firms will employ cheaper labour earn more profits and drive discriminating firms out of the market

C. Increase labor market discrimination because some workers can charge more for their services than other workers in a competitive market

D. have no impact on labour market discrimination

2471. The gas-guzzler tax that is placed on new vehicles that are very fuel inefficient is an example of ?
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A. an application of the Coase theorem

B. an attempt to internalize a positive externality

C. an attempt to internalize a negative externality.

D. a tradeable pollution permits.

2472. If two jobs require the same amount of skills and experience the job that pays the most is most likely to be the one that is ?
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A. easy

B. all these answers

C. unpleasant

D. safe

E. fun

2473. 1. The most widely traded currency in the foreign exchange market is the ?
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A. U.S dollar

B. British pound

C. euro

D. Chinese Yuan

2474. Which approach predicts that is an economy operates a full employment and faces trade deficit currency devaluation will improve the trade balance only if domestic spending is cut thus freeing resources to produce exports ?
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A. the monetary approach

B. the absorption approaches

C. the Marshall Lerner approach

D. the elasticities approach

2475. Country A has an absolute advantage in__________?
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A. Product X

B. Product Y

C. Neither X nor Y

D. Both X and Y

2476. In which of the following countries would you expect material lifestyles to be most like those in the United States ?
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A. Nigeria

B. Mali

C. Japan

D. India

2477. Absolute advantage is determined by ?
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A. actual differences in labor production between countries

B. relative differences in labor productivity between countries

C. Both (a) and (b)

D. Neither (a) nor (b)

2478. If the State Bank of Pakistan wished to pursue a tight monetary policy it would ?
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A. buy government securities on the open market

B. sell government securities on the open market

C. reduce the minimum reserve asset ratio.

D. lower interest rates

2479. If Canada runs a balance of payments surplus and exchange rates are floating ?
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A. the value of other currencies will rise relative to the dollar

B. the price of foreign goods will rise for Canadians

C. the dollar will depreciate relative to other currencies

D. the price of foreign goods will become cheaper to Canadians
2480. Net taxes are ?
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A. Taxes paid firms and households to the government minus the transfer payments made to firms and household

B. government expenditures minus government revenues

C. taxes paid by firms and households to the government minus the cost of collecting the taxes

D. Taxes paid by firms and households to the government plus transfer payments made to firm and households