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
651. The difference between the balance on current account and the balance on capital account is the ?
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A. trade deficit

B. balance of trade

C. balance of payments

D. statistical discrepancy
652. Shortly after 1979 World Bank introduced loans that emphasized reforms in trade, agriculture industry public enterprise financial energy education or other sectors and were known as ?
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A. sectoral adjustment loans

B. internal adjustment loans

C. external leverage loans

D. Structural adjustment loans

653. Lespeyres type indexes use weights from_____________?
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A. current period

B. forecasting

C. future year

D. base-period

654. The diagram that shows the income received and payments made by each sector of the economy is the ?
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A. income-price diagram

B. aggregate demand-aggregate supply diagram

C. circular flow diagram

D. income-expenditures diagram

655. Higher export demand __________ output and a higher MPZ __________ output?
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A. reduces, reduces

B. increases, increases

C. increase, reduces

D. reduces, increase

656. Purchases of government securities in the United States by foreigners is ?
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A. a debit item in the current account

B. a credit item in the capital account

C. a debit item in the capital account

D. a credit item in the current account

657. Which of the following countries is not a low-income country ?
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A. Ethiopia

B. Singapore

C. Rwanda

D. Somalia

658. International difference is opportunity costs lead to countries acquiring ?
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A. High exchange rates

B. Comparative advantage

C. trade quotas

D. trade barriers

659. The term tariff, as used in international trade refers to ?
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A. The price of goods when they leave the producing country

B. a government payment to encourage exports

C. a limit on the quantity of a good that can be imported into a country

D. a tax on imports
660. A primary reason why nations conduct international trade is because ?
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A. interest rates are not identical in all trading nations

B. Trade enhances opportunities to accumulate profits

C. Resources are not equally distributed to all trading nations

D. Some nations prefer to produce one thing while others produce another

661. Credit (+) items in the balance of payments correspond to anything that ?
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A. involves payments to foreigners

B. involves receipts from foreigners

C. decreases the demand for foreign exchange

D. increases the domestic money supply

662. IF GDP for Maldivies is $435 million in 2012 and the GDP per capita is $1576.087 the population of the country must be ?
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A. 276,000

B. 1,576,086

C. 0.276

D. 3.623

663. All of the following are low income countries except ?
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A. Bangladesh

B. Sudan

C. Armenia

D. United Arab Emirates
664. International trade is based on the idea that ?
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A. Resources are more mobile internationally than are goods

B. Resources are less mobile internationally than are goods

C. imports should exceed exports

D. Exports should exceed imports

665. When countries from large trading blocs like the EU, the size of the bloc has the effect of improving them ?
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A. balance of payments

B. terms of trade

C. comparative advantage

D. balance of trade

666. When free trade areas are set up the member countries trade with each other grows faster than their trade with other countries This is due to what economist call ?
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A. trade diversion

B. trade creation and trade diversion

C. trade creation

D. trade channeling

667. One classification of development levels used by the World Bank divides countries into three group on the basis of GNP per capita They are ?
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A. NIC, OPEC and G7

B. Low income , middle income and high income

C. Asia, America and Europe

D. Southeast Northeast and Southwest

668. All of the following are high income countries except ?
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A. Japan

B. South Africa

C. Singapore

D. U.K

669. A capital account surplus might be expected to cause a current account deficit because the associated ?
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A. capital inflow would cause the nations currency to depreciate contributing to a trade deficit

B. capital outflow would cause the nations currency to depreciate contributing to a trade deficit

C. capital outflow would cause the nations currency to appreciate contributing to a trade deficit

D. capital inflow would cause the nations currency to appreciate contributing to a trade deficit
670. According to the classical economists, the only gainers from growth would be ?
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A. politicians

B. The army

C. landlords

D. peasants

671. If, in the long run, people adjust their price expectations so that all prices and incomes move proportionately to an increase in the price level then the long-run Phillips curve ?
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A. has a slope that is determined by how fast people adjust their price expectations

B. is vertical

C. is positively sloped

D. is negatively sloped

672. If people have rational expectations a monetary policy contraction that is announced and is credible could ?
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A. reduce inflation but it would increase unemployment by an unusually large amount

B. Increase inflation but would decrease unemployment by an unusually large amount

C. increase inflation with little or no decrease in unemployment

D. reduce inflation with little or no increase in unemployment
673. The synchronized application of capital to a wide range of different industries is called __________ by its advocates?
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A. capitalization

B. balanced growth

C. elasticity of capital

D. indivisibilities

674. The terms of trade measure ?
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A. Export prices compared to import prices

B. The income of one country compared to another

C. The GDP of one country compared to another

D. The quantity of exports of one country compared to another

675. In the calculation of gross domestic product net exports are ?
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A. the sum of merchandise trade and services

B. the current account plus long-term capital

C. short-term capital plus the basic balance

D. the value of merchandise exports minus imports

676. If the MPC is 0.5 the multiplier is ?
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A. 0.2

B. 2-Jan

C. 2

D. 20

677. The imposition of a tariff causes consumption to _____ and imports to _________?
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A. rise, fall

B. fall, fall

C. rise, rise

D. fall, rise

678. During the 1980s and 1990s a period of economic conservative governments in much of West and Japan, a leading approach among development economists was ?
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A. neoclassicism

B. classical appraoch

C. Marxism

D. Rostows model

679. Economic integration ?
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A. occurs when one country voluntarily agrees to reduce its exports to another country

B. Occurs when countries develop an acquired comparative advantage that makes their industries more competitive in international markets

C. occurs when two or more nations join to form a free-trade zone

D. occurs when countries are granted most favored nation status

680. A sudden shift from import tariffs to free trade may induce short-term unemployment in ?
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A. Industries that are only exporters

B. Industries that sell domestically as well as export

C. industries that neither import nor export

D. Import-competing industries
681. According to chapter 2 in the text which of the following is true ?
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A. Today all high and Upper-middle income countries are Western.

B. The boundary between rich and poor countries has become clearer in 1990s

C. A few poor countries like South Korea and Malaysia in the 1950s grew much more rapidly than some higher-income countries like Uruguay and New Zealand

D. The fastest growing countries must be the ones with the highest per capita GNP

682. Refer to Exhibit 6.Suppose the economy is in long-run equilibrium at point E. A sudden increase in government spending should move the economy in the direction of point ?
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A. b

B. E

C. d

D. G

683. David Ricardos theory in favor of free trade uses the ideal of ?
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A. absolute advantage

B. comparative advantage

C. mutual advantage

D. multilateral advantage

684. Tariffs ?
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A. Increase the quantity of imports

B. Increase government earnings from tax

C. Decrease domestic production

D. Decrease the domestic price of a product

685. A country that is a net international debtor initially experiences a (an) ?
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A. loss of funds to trading partners overseas

B. decrease in its services exports to other countries

C. larger savings pool available to finance domestic spending

D. higher interest rate which leads to lower domestic investment

686. Which of the following is not a problem in comparing developed and developing countries GNP ?
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A. GNP is overstated for for countries where the price of foreign exchange is less than market clearing price

B. GNP is understated for developed countries, since a number of items included in their national incomes are intermediate goods

C. GNP in understated for developing countries since many of their labor intensive good have no impact on exchange rate since they are not traded

D. The economic contribution of a housewife is a peasant family may not be measured is GNP is poor country

687. If the Uk placed a limit on the amount of steel that could be imported into the UK in a particular period this would be an example of ?
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A. a quota

B. dumping

C. a tariff

D. an export subsidy

688. The current account includes ?
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A. unilateral transfers

B. the value of trade in merchandise

C. All of the above

D. services

689. Which of the following is not one of the Newly Industrialized Countries (NICs) ?
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A. Japan

B. Taiwan

C. South Korea

D. Singapore

690. The balance of payments is divided into two major accounts the ?
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A. current account the reserve account

B. current account the trade account

C. trade account the capital account

D. current account the capital account
691. Infant mortality ?
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A. is life expectancy up to age 3

B. reflects the availability of hospitals and childcare facilities and the parents wealth

C. reflects the availability of primary education the rights of employments and social security

D. is defined as the annual number of deaths of infant under 1 year old per 1,000 live births
692. Which of the following are low income countries income country ?
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A. United States

B. Canada

C. Australia

D. Mexico
693. A country has a comparative advantage in the production of a product if the goods _____ cost in different from the goods _____ cost in another country ?
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A. resource; resource

B. opportunity; opportunity

C. foreign exchange money

D. money; opportunity

694. If GNP per capita at constant prices for Ghana is US$360 and US$364 in 1996 and 1997 respectively, The real economic growth from 1996 to 1997 is ?
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A. 1.11%

B. 11%

C. 0.01%

D. 4%

695. In the balance of payments travels and tourism are included in the category of ?
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A. merchandise account

B. services account

C. capital account

D. unilateral transfers

696. Economic growth from current year (c) to previous year (p) is given by ?
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A. [(GDPc GDPp)/ DGPp]100

B. [(GDPc GDPp) DGPp]100

C. [GDPp GDPc]100

D. GNPc DGPp100)

697. Refer to Exhibit 6. Suppose the economy is Operating in long-run equilibrium at point E. An unexpected monetary contraction will move the economy in the direction of point ?
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A. H

B. E

C. F

D. c

698. Increased foreign competition tend to ?
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A. Induce falling output per worker-hour for domestic workers

B. Intensify inflationary pressure at home

C. Place constraints on the wages of domestic workers

D. Increase profits of domestic import competing industries

699. International trade tends to cause welfare losses to at least some groups in a country ?
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A. The more mobile the countrys resources

B. higher the countrys initial living standard

C. The less mobile the countrys resources

D. The lower the countrys initial living standard

700. For Rosentein Rodan a major indivisibility is in ?
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A. Supply

B. services

C. agriculture

D. infrastructure