economics MCQs – Page 125

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 Review each marked answer and report any item that may be outdated or unclear.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
2481. Of the Worlds population what portion lives in developing countries ?
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A. approximately 35%

B. nearly 10 billion people

C. nearly 1 billion people

D. approximately 80%
2482. Suppose there occurs an increase in the Canadian demand for Japanese computers This results in a (an) ?
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A. decrease in the demand for yen

B. decrease in the Supply of yen

C. increase in the demand for yen

D. increase in the supply of yen

2483. Relatively high real interest rates in the United States tend to ?
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A. increase the foreign demand for dollars causing the dollar to appreciate

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

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

D. increase the foreign demand for dollars causing the dollar to depreciate

2484. The opportunity cost of one DVD in South Korea is ?
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A. Two tons of steel

B. One ton of steel

C. One-half ton of steel

D. One and one-half tons of steel

2485. Country A has an absolute advantage in ?
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A. Beer

B. Wine

C. Both products

D. neither products
2486. The most efficient pollution control system would ensure that ?
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A. the regulators decide how much each polluter should reduce its pollution.

B. the polluters with the lowest cost of reducing pollution reduce their pollution the greatest amount

C. no pollution of the environment is tolerated

D. each polluter reduces its pollution an equal amount

2487. The price of one countrys currency in terms of another countrys currency is the ?
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A. balance of trade

B. currency valuation

C. terms of trade

D. exchange rate
2488. As the required reserve ratio is decreased the money multiplier ?
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A. remain the same, as long as bank hold no excess reserves

B. could either increase or decrease

C. increase

D. decrease

2489. According to Webers thesis ?
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A. Protestants disapproved of accumulating wealth

B. Protestants failed to restrict extravagance and conspicuous consumption

C. Roman Catholicism expressed its asceticism in a secular vocation

D. capitalism was most advanced in Protestant countries
2490. In a regressive tax system ?
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A. The amount of tax paid increase with income

B. The average rate of tax is constant as income increases

C. The average rate of tax falls as income increase

D. The marginal rate of tax decrease with more income

2491. Under a system of floating exchange rates relatively low productivity and high inflation rates in the United States results in a (an) ?
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A. decrease in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar

B. increase in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar

C. increase in the demand for foreign currency an increase in the supply of foreign currency and a appreciation in the dollar

D. decrease in the demand for foreign currency and increase in the supply of foreign currency and a appreciation in the dollar

2492. Which of the following characteristics are most likely found in developing countries ?
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A. All of the above

B. large number of people living in poverty

C. high population growth rates

D. very traditional methods of agricultural production

2493. Which of the following is not considered a transaction cost incurred by parties in the process of contracting to eliminate a pollution externality ?
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A. costs incurred due to a large number of parties affected by the externality

B. costs incurred to enforce the agreement

C. costs incurred to reduce the pollution

D. All of these answers are considered transaction costs

E. costs incurred due to lawyers fees

2494. Mercantilism ?
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A. Is the philosophy of free international trade?

B. Was a system of export promotion and barriers to imports practiced by governments?

C. Was praised by Adam Smith in the Wealth of Nations

D. Both (a) and (c)

2495. The purchasing power parity theory has limitations in forecasting exchange rate fluctuations for all of the following reasons except ?
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A. not all products are internationally tradeable

B. inflation effects exchange rates

C. international capital flows affect exchange rates

D. governments sometimes impose trade restrictions such as tariffs and quotas

2496. Which of the following was a socialist country ?
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A. Soviet Union

B. #NAME?

C. India

D. Holland

2497. Which of the following is an example of a Schumpeterian innovation ?
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A. An existing internet provider provides competition to two other providers in Dayton Ohlio

B. An American buying a stock in the Philippines stock market

C. The invention of the Stanley steamer

D. The production and marketing of the Model T Ford in the 19-teens
2498. If export contracts are written in terms of foreign currency and import contracts are denominated in domestic currency a depreciation of the dollar during the currency contract period ?
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A. should increase the dollar value of exports

B. All of the above

C. should not have any effect on the dollar value of U.S imports

D. must increase the balance of trade

2499. Given a two-country world, suppose Japan devalues the yen by 20 percent and west German devalues the mark by 15 percent This result is a (an)?
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A. appreciation in the value of both currencies

B. depreciation in the value of both currencies

C. appreciation in the value of the yen against the mark

D. depreciation in the value of the yen against the mark
2500. The assets market approach is most helpful in explaining ?
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A. why governments change their money supplies

B. why exchange rates remain quite stable

C. short term exchange rate movements

D. long term exchange rate movements