economics MCQs – Page 135

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 Review each marked answer and report any item that may be outdated or unclear.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 economy 2. profit maximizing under perfect competition and monopoly 3. application of economics 4. the aggregate demand aggregate supply model 5. surplus 6. money interest rates and output 7. average and total cost 8. stabilization adjustment reform and privatization 9. risks and diversification efficient market hypothesis 10. the phillips curve 11. supply and demand 12. capital formation investment choice information technology and technical progress 13. aggregate supply unemployment and inflation 14. elasticity 15. comparative gdp 16. roots of modern macroeconomics 17. production factors 18. poverty malnutrition and income inequality 19. trade regulations and industrial policies 20. monetary union 21. exchange rate systems and currency crises 22. economic development in historical perspective 23. exchange rate determination 24. monopoly competition 25. the balance of payments 26. inflation productivity 27. macroeconomic issues and analysis 28. employment migration and urbanization 29. macroeconomic policy tools 30. supply side policies 31. exchange rate adjustments and the balance of 32. miscellaneous 33. taxation 34. trade policies for the developing nations 35. markets efficiency and the public interest 36. the external debt and financial crises 37. budget deficits and the trade balance 38. alternative theories of the firm 39. public goods 40. the meaning and measurement of economic development 41. characteristics and institutions of developing countries 42. agriculture irrigation system of pakistan 43. education health and human capital 44. economic problems of developing countries 45. theories of economic development 46. basic of economics 47. consumer theory vs real consumers 48. applied microeconomics 49. long term economic growth 50. externality internality 51. fiscal and monetary policy 52. prices wages taxes 53. balance of payments aid and foreign investment 54. international factor movements and multinational corporations 55. entrepreneurship organization and innovation 56. the international economy and globalization 57. population and development 58. non tariff trade barriers 59. foundations of modern trade theory 60. global economic development 61. market 62. rural poverty and agricultural transformation 63. regional trading arrangements 64. foreign exchange 65. introduction to economics 66. world economy miscellaneous 67. sources of comparative advantage 68. natural resources and the environment toward sustainable development 69. monopoly 70. asymmetric information 71. income inequality 72. labour market 73. tariffs 74. development planning and policy making the state and the market 75. oligopoly 76. industrial development 77. costs supply and perfect competition 78. human capital 79. monetary fiscal and incomes policy and inflation 80. stocks

2681. Which of the following statement regarding the loanable funds market is true ?
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A. An increase in private saving shifts the supply of loanable funds to the left

B. An increase in the government budget deficit shifts the supply of loanable funds to the left

C. A decrease in the government budget deficit increase the real interest rate

D. An increase in the government budget deficit shifts the supply of loanable funds to the right

2682. The term Fourth World has been coined to describe ?
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A. Countries that still have a communist government like China and Cuba

B. countries that have fallen far behind the economic advances of the rest of the world

C. The republics of the former Soviet Union

D. the newly industrialized countries like Korea, Taiwan Malaysia

2683. Based on Mankiw Romer and Weil (1992) with conditional convergence holding fertility rates, education and government spending as a share of GDP constant ?
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A. income per capita in poor countries grows conditional upon foreign aid

B. income per capita in rich countries grows faster than in poor countries

C. income per capita is the same regardless of poor or rich countries

D. income per capita in poor countries grows faster than in rich countries

2684. The invisibly underemployed ?
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A. result from an inadequate use of workers capacities

B. are workers who are compelled to work short hours

C. None of the above is correct

D. are part-time workers who voluntarily work short hours

2685. An increase in Pakistans private saving ?
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A. increase Pakistans net exports and Pakistans net capital outflow the same amount

B. decreases Pakistans net exports and Pakistans net capital outflow the same amount

C. Increase Pakistans net exports and decrease Pakistans net capital outflow

D. decrease Pakistans net exports and increase Pakistans net capital outflow

2686. If all firms in a market have identical cost structures and if inputs used in the production of the good in that market are readily available, then the long-run market supply curve for that good should be ?
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A. downward sloping

B. upward sloping

C. perfectly elastic

D. perfectly inelastic

2687. By 2010 the U.S Census Bureau expects life expectancy in the tow southern African countries of Botswana and South Africa to be ?
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A. 30 to 40 years, about the same as in 1995

B. 30 to 40 years, a fall of more than 10 years from 1995

C. 70 years, an increase from 1995

D. 50 to 60 years, about the same as in 1995

2688. Most of the Third World/Fourth World debt was incurred in ?
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A. The colonial period

B. The early 1950s

C. most debt was incurred during the oil shocks of the 1970s

D. the early 1960s

2689. If an increase in a consumers income causes the consumer to increase his quantity demand of a good, then the good is ?
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A. a normal good

B. an inferior good

C. a complementary good

D. a substitute good

2690. In monopolistic competition of firms are making abnormal profit other firms will enter and ?
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A. the demand curve will shift inwards

B. The average variable cost will increase

C. The average cost will shift downwards

D. The marginal cost will shift outwards

2691. If the cross-price elasticity between two goods is negative the two goods are likely to be ?
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A. substitutes

B. complements

C. luxuries

D. necessities

2692. What is the ratio of population density of developing countries to the population of developed countries ?
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A. no more than 1

B. 2

C. 10

D. 20

2693. In the long run in perfect competition ?
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A. Firms are allocatively inefficient

B. Firms are productively efficient

C. The price equals total cost

D. The price equals the total revenue

2694. Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumers income is 100 Suppose that the price of a pair of socks falls from 5 to 2 The substitution effect is represented by the movement from point ?
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A. X to point X

B. Z to point X

C. X to point Z

D. Y to point X

2695. Assume that the real income of developing Island increases from $120,000 to $160,000 from 2005 to 2006 while its population expands from 1000 to 1100 during the same period Real income per capita has increased by about ?
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A. $25

B. $40,000

C. $145

D. $100

2696. Which of the following is an example of foreign portfolio investment ?
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A. JCB builds a new plant near Manchester

B. Toyota builds a new plant in the north of England

C. EDF of France buys shares in Scottish & Southern Energy of the UK, and Scottish & Southern Energy uses the Proceeds to build a new hydro-electric power station in Scotland

D. Deutsche Bank of Germany buys some new software from UK Supplier

2697. More than seventy percent of the population of fast g: owers lives in ?
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A. Europe

B. United States

C. Russia

D. China

2698. Which of the following is true about the consumers optimum consumption bundle? At the optimum ?
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A. none of these answers are true

B. the slope of the indifference curve equals the slope of the budget constraint

C. the relative prices of the two goods equals the marginal rate of substitution

D. the indifference curve is tangent to the budget constraint

E. all of these answers are true