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
6651. Objectivity means ?
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A. precision

B. eliminating bias

C. taking nothing for granted

D. repeating observations

6652. The ratio of change in the equilibrium level of output to a change in some autonomous variable is the ?
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A. multiplier

B. elasticity coefficient

C. automatic stabiliser

D. marginal propensity of the autonomous variable

6653. Companies in the private sector are owned by ?
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A. Employees

B. The government

C. Shareholders

D. The community

6654. Investment depends mainly on ?
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A. Historic data

B. Past levels of income

C. Future expected profits

D. Present national income levels
6655. If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 total consumption is what ?
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A. 0.81

B. 0.8

C. 800

D. 810

6656. According to the Laffer curve as tax rates increase tax revenue ?
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A. initially decrease and then increase

B. decrease continuously

C. initially increase and then decrease

D. rise continuously

6657. The PFI aims to deliver public projects and services using ?
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A. time and motion studies

B. Public borrowing

C. foreign labour

D. The private sector
6658. An economy may operate outside the production possibility Frontier if ?
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A. It is a mixed economy

B. It is trading other economies

C. It is not utilizing its resources fully

D. It is being productively efficient

6659. An anthropologist living with a group of people and engaging in some of their rituals is using the following research method ?
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A. experiment

B. sample survey

C. statistical survey

D. participant observation
6660. If the price elasticity of demand for a product in market A is -0.2 and in market B is -3 a price discriminator will charge ?
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A. The higher price in market A

B. The higher price in market B

C. The same Price in both markets

D. Cannot tell which price will be higher

6661. Knowing the workings of a car engine represents which kind of knowledge ?
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A. normative

B. value oriented

C. rule oriented

D. cognitive
6662. To maximise sales revenue a firm should produce where ?
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A. Marginal cost is zero

B. Marginal revenue equals marginal cost

C. Marginal revenue is maximised

D. Marginal revenue is zero

6663. Laws are_______________?
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A. formal norms enforced by the state

B. less important than folkways

C. informal norms

D. casual folkways

6664. A fall in interest rates is likely to ?
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A. Increase aggregate demand

B. Decrease exports

C. Increase savings

D. Decrease consumption

6665. Ethical neutrality is the opposite of_________________?
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A. judgmental social science

B. participant observation

C. objectivity

D. generalization

6666. For the better part of recorded history knowledge about social relationships was principally based on ?
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A. speculation

B. scientific investigation

C. inspiration

D. measurement

6667. Keynes suggested that decisions to consume and save were based on ?
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A. permanent income

B. previous decisions

C. relative income

D. absolute income
6668. If the marginal revenue is Positive ?
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A. Selling another unit will increase total revenue

B. Selling another unit will increase profits

C. Selling another unit will increase costs

D. Selling another unit will increase average revenue
6669. Which of the following is an injection into the economy ?
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A. Taxation

B. Imports spending

C. Savings

D. Investment

6670. The profit per sale is a measure of ?
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A. Profit

B. Realism

C. Profitability

D. Feasibility

6671. The social sciences lack ?
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A. theories

B. scientific laws

C. concepts

D. generalization

6672. The accelerator assumes ?
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A. The multiplier is constant

B. The marginal propensity to consume is constant

C. There is a constant relationship between net investment and the rate of change of output

D. The economy is at full employment

6673. An outward shift in the Marginal Efficiency of Capital should ?
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A. Slow economic growth

B. Decrease consumption

C. Reduce aggregate supply

D. Increase aggregate demand

6674. In defining social sciences which of the following phrases is the most appropriate?
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A. social philosophy

B. study of individual behavior

C. rules for behavior

D. systematic and methodical study
6675. When does a society need laws ?
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A. when it is necessary to create folkways and mores

B. when people commit too many sins

C. when the folkways and mores are not sufficient to control behavior

D. when the court system declares that they are needed

6676. The marginal propensity to consume is equal to ?
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A. change in consumption / change in income

B. Total consumption / total income

C. Total spending / total consumption

D. Change in consumption / change in savings

6677. Barriers to entry ?
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A. Occur in perfect competition

B. Enable losses to be made in the long run

C. Enable abnormal profits to be made in the short run only

D. Enable abnormal profits to be made in the long run

6678. Durkheim was one of the first scientific sociologists who studied______________?
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A. suicide

B. sex

C. all of the above

D. mental illness

6679. Which of the following is NOT an example of a subject investigated by social scientists ?
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A. The course of population growth and decline

B. The functioning of supply and demand

C. The interaction of various drugs in humans

D. Case study of an urban gay community

6680. If labour productivity per week is 200 units and there are 5 employees what is the total output ?
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A. 195 units

B. 1000 units

C. 200 units

D. 40 units
6681. In macroeconomics, equilibrium is defined as that point at which ?
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A. aggregate output equals consumption minus investment

B. saving equals consumption

C. Planned aggregate expenditure equals aggregate output

D. planned aggregate expenditure equals consumption

6682. A way of helping depressed regions by having lower wages, lower local taxes and lower unemployment benefit has been suggested as ?
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A. Keynesian

B. left-wing theorists

C. New-Keynesian

D. market orientated economists
6683. A counterculture ?
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A. emphasizes math

B. opposes values of the mainstream culture

C. is based in stores

D. none of the above

6684. Investment is ?
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A. A withdrawal that decrease aggregate

B. An injection that decreases aggregate demand

C. An injection that increases aggregate demand

D. A withdrawal that increase aggregate demand

6685. Disposable income is the part of households income left after the deduction of ?
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A. income tax and social security payments

B. contractual payments such as pensions and mortgages

C. taxes and the addition of benefits

D. income tax

6686. According to the paradox of thrift increased efforts to save will cause ?
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A. a decrease in income and an overall decrease in saving

B. an increase in income but no overall change in saving

C. an increase in income and an increase in overall saving

D. a decrease in income but an increase in saving

6687. The liquidity trap occurs when the demand for money ?
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A. Means that an increases in the money supply leads to an increases in the interest rate

B. Is perfectly interest inelastic

C. Means that an increase in money supply leads to a fall in the interest rate

D. Is perfectly interest elastic
6688. Potential growth measures ?
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A. The rate of growth that could be achieved if resources were fully employed

B. The fastest growth an economy has ever achieved

C. the growth of the fastest economy in the world

D. The present rate of growth of an economy

6689. Which best describes price discrimination ?
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A. Charging the same prices for different products

B. Charging the same prices for same products

C. Charging different prices for the same products

D. Charging different prices for different products

6690. The social sciences first emerged ?
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A. to defend the established order

B. as a search for universal social laws

C. to systematically apply common sense to issues

D. as a method of social control

6691. If the marginal propensity to consume on domestic products is 0.9 the size of the multiplier is ?
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A. 1

B. 0.1

C. 9

D. 10

6692. If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 the marginal propensity to consume is what ?
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A. 800

B. 0.8

C. 810

D. 0.81
6693. Lower interest rates are likely to ?
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A. increase cost of borrowing

B. Decrease consumption

C. Increase spending

D. Encourage saving

6694. The accelerator theory of investment says that induced investment is determined by ?
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A. the level of aggregate demand

B. expectations

C. the level of national income

D. the rate of change of national income
6695. Scientific observations are based on_________________?
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A. precision

B. all of the above

C. controlled conditions

D. organization of the data

6696. People manipulate the social world which helps them to______________?
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A. take over the environment

B. change the nature of the physical environment

C. regulate the environment

D. adapt to the environment
6697. Investment is a unstable element of aggregate demand because it depends heavily on ?
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A. Government policy

B. National income

C. Expectations

D. Historic trends

6698. Normal profit occurs when ?
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A. Marginal revenue equals marginal cost

B. Average revenue equals marginal cost

C. Average revenue equals average cost

D. Average revenue equals average variable cost
6699. As resources are shifted from one industry to another this can be shown by ?
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A. An inward shift of the production possibility frontier

B. The pivoting of the production possibility frontier

C. A movement along the production possibility frontier

D. An outward shift of the production possibility frontier

6700. Ethnocentrism refers to_______________?
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A. an attitude with which members of one society judge another society according to their own standards

B. all of the above

C. the attitude that cultures be analyzed on their own terms

D. the attitude that certain values and practices are common to all cultures