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
6601. A culture complex is_______________?
comments icon0

A. a psychological condition

B. a theater symphony hall and museum

C. a cluster of traits centered around a common activity

D. one cultural trait

6602. In the equation C = a + bY, which describes the aggregate consumption function b stands for ?
comments icon0

A. The average consumption level

B. The amount of income when consumption is zero

C. The marginal propensity to consume.

D. The amount of consumption when income is zero

6603. The evaluation that a certain phenomenon is good beautiful moral right and therefore desirable is termed a_______________?
comments icon0
A. value

B. guideline

C. folkway

D. norm

6604. The social sciences have no laws because ?
comments icon0

A. social science research techniques are flawed

B. social scientists are a lawless group

C. none of the above

D. the various disciplines squabble among themselves

6605. The most important category of norms for maintaining social order are ?
comments icon0

A. folkways

B. customs

C. mores

D. traditions

6606. To be Productively efficient a firm must produce where ?
comments icon0

A. Marginal costs are Minimized

B. Average costs are minimized

C. Average costs are maximized

D. Marginal costs are maximized
6607. The total costs are Rs2000 and 10 units are produced. The marginal cost of an 11th unit is Rs1300 Which of the following is true ?
comments icon0
A. The average cost for 10 units is Rs1300

B. The average cost for 11 units is Rs1300

C. The average cost increase from Rs20 to Rs30

D. The total costs for 11 units are Rs700

6608. An increase in interest rates ?
comments icon0

A. Is likely to reduce savings

B. Is likely to reduce the external value of the currency

C. Leads to a shift in the MEC schedule

D. Leads to a movement along the MEC schedule

6609. A profit maximising firm will invest up to the level of investment where ?
comments icon0

A. The cost of borrowing equals the marginal efficiency of capital

B. The cost of borrowing is greater than the marginal efficiency of capital

C. The cost of borrowing equals the marginal propensity to consume

D. The cost of borrowing is less then the marginal efficiency of capital
6610. According the law of diminishing returns ?
comments icon0
A. The marginal product fall as more units of a variable factor are added to a fixed factor

B. The marginal product increases as more units of a variable factor are added to a fixed factor

C. The total product falls as more units of a variable factor are added to a fixed factor

D. Marginal utility falls as more unity of a product are consumed

6611. If an economy is productively efficient ?
comments icon0

A. Resources are unemployed

B. The distribution of income is eqal

C. More of one product can only be produced if less of another product is produced

D. Everyone is wealthy

6612. Variables that exercise influence on other variables are called ?
comments icon0

A. independent variables

B. constants

C. dependent variables

D. none of the above

6613. Reaganomics was a radical shift in Policy aimed at direct tackling ?
comments icon0
A. the supply side of the economy

B. The demand side of the country

C. The underground economy

D. The charities economy

6614. Labour Productivity measures ?
comments icon0

A. The output per worker

B. Total output

C. The output per machine

D. Marginal output
6615. According to the quantity theory of money an increase in the money supply is most likely to lead to inflation if ?
comments icon0

A. The velocity of circulation and the number of transactions is constant

B. The number of transaction decrease

C. There is deflation

D. The velocity of circulation decrease

6616. A benefit to consumers of price discrimination is that ?
comments icon0

A. Producer surplus increases

B. Consumer surplus decreases

C. Some products are produced that would not otherwise be produced

D. Firms profits increase

6617. If marginal cost is positive and falling ?
comments icon0

A. Total cost is falling

B. Total cost is increasing at a falling rate

C. Total cost is increasing at an increasing rate

D. Total cost is falling at a falling rate

6618. To reduce the supply of money the government could ?
comments icon0

A. Reduce interest rates

B. Sell government bonds

C. Buy back government bonds

D. Encourage banks to lend
6619. History is often NOT considered a social science because_______________?
comments icon0

A. historians do not use computers

B. it is not based on evidence

C. it does not study people

D. its primary concern is to record events of the past
6620. A reflationary policy ?
comments icon0
A. Reducing interest rates

B. Reducing taxation rates

C. increase injections

D. Reducing government spending

6621. If marginal revenue equals marginal cost ?
comments icon0
A. Profits are maximised

B. Total revenue equals total cost

C. No profit is being made

D. Producing another unit would increase profits

6622. The average variable cost curve ?
comments icon0

A. is derived from the average fixed costs

B. Equals the total costs divided by the output

C. Converges with the average cost as output increases

D. Equals revenue minus profits

6623. Any combination of products inside the production possibility frontier is ?
comments icon0

A. X inefficient

B. Allocatively inefficient

C. Productively inefficient

D. Consumer inefficient

6624. If injections are less than withdrawals at the full-employment level of national income, there is ?
comments icon0
A. A deflationary gap

B. hyperinflation

C. an inflationary gap

D. hysteresis

6625. The proportion of an increase in national income paid in tax is ?
comments icon0

A. the average tax propensity

B. the marginal tax propensity

C. the fiscal stance

D. the tax multiplier

6626. The law of diminishing returns assumes ?
comments icon0

A. There are no fixed factors of production

B. There are no variable factors of production

C. Utility is maximised when marginal product falls

D. Some factors of production are fixed

6627. When gathering data, the scientist is required to exhibit all BUT which one of the following traits ?
comments icon0

A. Courage

B. Ethical neutrality

C. Patience

D. Social involvement
6628. Injections are?
comments icon0

A. Decrease aggregate demand

B. Decrease the investment into an economy

C. Assumed to be exogenous

D. Assumed to be a function of national income

6629. An increase in national income is likely to ?
comments icon0

A. causes an increase in injections into the economy

B. Decrease tax receipts

C. Worsen the balance of trade

D. Automatically cause an increase in government spending

6630. Open Market Operations occur when the government ?
comments icon0

A. Reduces the interest rate

B. Increase the exchange rate

C. Increases taxation

D. Buys and sells bonds and securities

6631. In a free market the combination of products produced will be determined by ?
comments icon0

A. The law

B. The government

C. Market forces of supply and demand

D. The public Sector

6632. To anticipate what the economy is going to do next the government will look at ?
comments icon0

A. Lagging indicators

B. Flashing indicator

C. Leading indicators

D. Coincidental indicators

6633. In a recession, GDP ?
comments icon0

A. Grows negatively

B. Grows rapidly

C. Grows slowly

D. Grows by 0%
6634. Assuming there is no government or foreign sector, if the MPC is 8 the multiplier is ?
comments icon0
A. 5

B. 8

C. 2

D. 1.25

6635. An increase in the marginal propensity to consume will ?
comments icon0
A. Increase the marginal propensity to save

B. increase the size of the multiplier

C. Decrease national income

D. Reduce injections into the economy

6636. If marginal product is below average product ?
comments icon0

A. Average variable cost will fall

B. The total product will fall

C. The average product will fall

D. Total revenue will fall

6637. The marginal propensity to withdraw is ?
comments icon0
A. MPS + MPT + MPM

B. 1-(1/injections multiplier

C. the proportion of national income that is withdraw from the circular flow of income

D. 1/investment multiplier

6638. Which of the following is FALSE? Scientific observation ?
comments icon0

A. yields valid date with classification organization or recording

B. must proceed systematically

C. is open to anyone who wants to pursue it

D. must occur under controlled conditions

6639. Human life is acted out within a triangle of_______________?
comments icon0

A. income safety and deference

B. rules roles and norms

C. society culture and the individual

D. class status and power

6640. A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work save and invest these economists are ?
comments icon0

A. rational -expectations economists

B. New classical economists

C. supply side economists

D. neo-Keynesian economists

6641. Once a social scientist has formulated the hypothesis what is the next step of the scientific method ?
comments icon0

A. Data analysis

B. Generalization

C. Developing a research design

D. Replication

6642. The double standard in the behavior of people in society is acknowledged by the existence of a(n)?
comments icon0
A. overt and covert culture

B. moral and immoral culture

C. legal and illegal culture

D. ethical and unethical culture

6643. A significant increase in the government budget deficit is likely to ?
comments icon0
A. Move the economy away from full employment

B. Reduce injections into the economy

C. Reduce national income

D. Boost aggregate demand

6644. The socially optimal rate of growth is ?
comments icon0
A. Where the marginal social benefit = the marginal social cost

B. Zero

C. Negative

D. Total social costs are minimised

6645. An independent assessment of the impact of firms activities on society is called a ?
comments icon0

A. Social audit

B. Profit and loss account

C. Financial audit

D. Balance sheet

6646. If injections are greater than withdrawals ?
comments icon0

A. National income will stay in equilibrium

B. National income will increase

C. National income will decrease

D. Price will fall

6647. A deflationary policy could include ?
comments icon0

A. Reducing government spending

B. Reducing taxation rates

C. Reducing interest rates

D. increasing injections

6648. If the price is less than the average costs but higher than the average variable costs ?
comments icon0

A. The firm is making a loss and will shutdown in the short term

B. The firm is making a profile

C. The firm is making a loss but will continue to produce in the short term

D. The firm is making a loss and is making a negative contribution to fixed costs

6649. Which of the following would be considered a supply-side policy ?
comments icon0

A. Restrictions placed on the amount that can be imported

B. An increased in government spending that would lead to increased aggregate demand

C. An increase in the minimum wage that would cause consumer spending to increase

D. Investment tax credits for businesses to encourage investment
6650. If an increase in investment leads to a bigger increase in national income this called the ?
comments icon0
A. Aggregate demand

B. Multiplier

C. Accelerator

D. Monetarism