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
7001. _________ are products bought by individuals and organizations for further processing or for use in conducting a business?
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A. Specialty products

B. Consumer products

C. Services

D. Industrial products
7002. When personal interviewing involves inviting six to ten people to gather for a few hours with a trained interviewers to talk about a product service, or organization the method is called ?
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A. focus group interviewing

B. Probing

C. Selective sponsorship

D. the Delphi method

7003. According to Engels law as income rises ?
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A. The percentage spent on savings remains constant

B. The percentage spent on food rises

C. The percentage spent on other categories increase

D. The percentage spent on housing increases

7004. Which of the following country was not a major LDC debtor in 2001 ?
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A. Argentina

B. Malaysia

C. Thailand

D. Brazil

7005. Which of the following is will NOT reduce capital flight from source countries ?
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A. more efficient state enterprises

B. dependable positive real interest rates

C. market liberalization

D. higher taxes on capital gains
7006. Shortly after 1979 World Bank introduced loans that emphasized reforms in trade, agriculture industry public enterprise financial energy education or other sectors and were know as ?
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A. external leverage loans

B. sectoral adjustment loans

C. Structural adjustment loans

D. internal adjustment loans

7007. Which of the following statement is Not true ?
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A. Many large LDC debtors borrowed heavily because of their excellent international credit ratings

B. The debt-burden of sub Saharan African countries may be as heavy as for middle income countries

C. Middle income countries account for almost four-fifths of the total outstanding debt of all LDCs

D. The ratio of debt service to GNP is very good indicator of the debt burden
7008. The debt-service ratio is the______________?
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A. interest and principle payments divided by exports of goods and services

B. default and reschedule debt minus annual export revenues that must be devoted to paying interest

C. ratio of debt net of portfolio investment financing and foreign direct investment

D. long-term debt divided by GDP of a country in a given year

7009. The policy cartel on debt reduction refers to the_______________?
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A. None of the above

B. screening of debtors based on their regional location

C. World Bank requiring LDCs seconded by a DC to get loan reduction

D. loan denial to crisis-stricken highly indebted countries

7010. Initial conditions in the year before the crisis in Thailand Indonesia Malaysia the Philippines and Korea in 1997 indicate that ?
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A. Nonperforming bank loan ratios were high

B. . current account deficits were high

C. credit growth was fast

D. capital inflows/GDP were very low

7011. Which of the following country did not experience large capital flights from 1976 to 1984 ?
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A. Argentina

B. Mexico

C. Canada

D. Venezuela

7012. Highly-indebted poor countries (HIPCs) include________________?
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A. Benin

B. Bolivia

C. Tanzania

D. #NAME?

7013. In 1990, during the Persian Gulf War, the U.S government extended generous terms to two middle-income countries by canceling or reducing their debt The two countries were ?
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A. Egypt and Poland

B. Saudi Arabia and Jordan

C. Pakistan and Afghanistan

D. Iraq and Iran

7014. 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. Structural adjustment loans

B. internal adjustment loans

C. external leverage loans

D. sectoral adjustment loans
7015. The Baker plan (1985) stressed _______ and the Brady Plan (1989) emphasized _______ respectively?
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A. new loans from multilateral agencies and surplus countries; debt reduction or write-downs

B. IMF decentralization; World Bank dissolution

C. structural adjustment loans for LDCs experiencing unanticipated external shocks; renewed emphases on macroeconomic stabilization programs

D. debt relief for at leas three-fourths of the eligible HIPCs; shorter requirements for adjustment programs

7016. Which of the following country did Not suffer from increased poverty from debt and financial crises in the 1990s ?
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A. Russia (1998)

B. Brazil (1998)

C. Singapore (1994)

D. Mexico (1994)

7017. Which of the following factors potentially increased the vulnerability to the 1997 Asian financial and currency crisis ?
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A. Symmetric informational in financial market

B. technological transfer from DCs

C. massive reverse outflows of capital

D. trade account surplus

7018. Mosley Harrigan and Toye refer to the IMF and World Bank as________________?
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A. excessively committed to writing down LDC debt

B. a managed duopoly of policy advice

C. a U.S monoply

D. the initiator of HIPCs debt forgiveness

7019. A countrys total external debt (EDT) includes ?
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A. short term debt with a maturity of one year or less

B. IV public official development assistance

C. long-term debt with a maturity of more than one year

D. . repurchase obligations to the IMF

7020. Net transfers are______________?
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A. net international resource flows minus net international interest payments and profit remittances

B. international resource outflows minus international balance of payments and profit remittances

C. foreign direct investment inflow minus investment loans and grants from overseas

D. investment loans, and grants from overseas minus international resource outflows

7021. Which of the following is Not true about external debt ?
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A. International lenders required LDC governments to guarantee private debt

B. When debts are denominated in U.S dollars their appreciation during the 1990s increased the cost of servicing such debts

C. External debt accumulates with international balance on goods services and income deficcits

D. In the 19901s LDCs relied increasingly on aid from DCs
7022. Fundamentalists want the IMF to lend to crisis-stricken countries on condition that they undertake fundamental structural reforms in banking Joseph Stiglitz however thinks it is______________?
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A. impractical for the IMF to loan short term as reforms can only be effective in the middle to long run

B. crucial that the IMF intervene in the reform of fiscal policy of the country and not the monetary policy

C. unrealistic for IMF to intervene in the financial markets of poor countries during the crisis

D. None of the statements above is correct

7023. Which of the following groups would be most harmed by a UK government budget deficit ?
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A. Foreigners who wish to buy assets in the UK

B. BAe Systems wishing to sell aircraft to Saudi Arabia

C. Lenders of loanable funds

D. UK residents wishing to buy foreign Produced cars

7024. An export subsidy should have the opposite effect of ?
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A. A government budget deficit

B. An increase in Private saving

C. A tariff

D. Capital flight

7025. An example of a trade policy is ?
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A. All are examples of trade policy

B. capital flight because it increases a countrys net exports

C. A tariff on sugar

D. an increase in the government budget deficit because it reduces a countrys net exports

7026. An increase in the government budget deficit ?
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A. decreases the real interest rate and crowds out investment

B. None of these answers

C. Increases the real interest rate and crowds out investment

D. has no impact on the real interest rate and fails to crowed out investment

7027. Which of the following statements about trade policy is true ?
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A. None of these answers

B. A countrys trade policy has no impact on the size of its trade balance

C. A restrictive import quota decreases a countrys net exports

D. A restrictive imports quota increases a countrys net exports

7028. An increase in Pakistans private saving ?
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A. Increase Pakistans net exports and decrease Pakistans net capital outflow

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

C. increase Pakistans net exports and Pakistans net capital outflow the same amount

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

7029. Which of the following statements regarding the market for foreign currency exchange is true ?
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A. An increase in Pakistans net exports decrease the demand for rupees and the rupees appreciates

B. An increase in Pakistans net exports increase the demand for rupees and the rupees appreciates

C. An increase in Pakistans net exports decreases the supply of rupees and the rupees depreciates

D. An increase in Pakistans net exports increases the Supply of rupees and the rupees depreciates

7030. Which of the following statement regarding the loanable funds market is true ?
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A. An increase in the government budget deficit shifts the supply of loanable funds to the right

B. An increase in private saving shifts the supply of loanable funds to the left

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

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

7031. An increasing in Europes taste for UK produced Hondas would cause the pound to ?
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A. appreciate and would increase UK net exports

B. depreciate and would increase UK net exports

C. appreciate, but the total value of UK net export stays the same

D. depreciate and would decrease UK net exports

7032. Suppose, due to political instability, Russians suddenly choose to purchase UK assets as opposed to Russian assets Which of the following statements is true regarding the value of the pound and UK net exports ?
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A. The pound appreciates, and UK net exports rise

B. The pound appreciates, and UK net exports fall

C. The pound depreciates, and UK net exports rise

D. The pound depreciates, and UK net exports fall

7033. Suppose, due to political instability, Russians suddenly choose to invest in UK assets as opposed to Russian assets Which of the following statements is true regarding UK net foreign investment ?
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A. UK net foreign investment rises

B. UK net foreign investment falls

C. UK net foreign investment is unchanged because only UK residents can after UK net foreign investment

D. None of the above

7034. The Phrase twin deficits refers to ?
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A. a countrys trade deficit and its net capital outflow deficit

B. A countrys trade deficit and its government budget deficit

C. the equality of a countrys saving deficit and its investment deficit

D. The fact that if a country has a trade deficit, its trading partners must also have trade deficits

7035. If the EU imposes a quota on the importing of clothing produced in China, so reducing UK imports of clothing Which of the following is true regarding the market for foreign currency exchange ?
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A. The Supply of pounds increases, and the pound depreciates

B. The demand for Pounds increases and the pound appreciates

C. The demand for pounds decreases and the pound depreciates

D. The Supply of pounds decreases, and the pound appreciates

7036. An increase in the Pakistans government budget deficit ?
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A. decreases Pakistans net exports and increase Pakistans net capital outflow

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

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

D. decreases Pakistans net exports and Pakistans net Capital outflow the Pakistans same amount
7037. Which of the following statements regarding the loanable funds market is not true ?
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A. An increase in domestic investment shifts the demand for loanable funds to the right

B. An increase in a countrys net capital outflow raises its real interest rate

C. A decrease in a countrys net capital outflow shifts the demand for loanable funds to the left

D. An increase in a countrys net capital outflow shifts the supply of loanable funds to the left
7038. Which of the following groups would not benefit from an EU imports quota on Japanese cars ?
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A. Eu consumers who buy electronics from Japan

B. EU farmers who export grain

C. employees of EU car manufacturers

D. Shareholders of German carmaker BMW

7039. Capital flight ?
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A. increases a countrys net exports and increases its long-run growth path

B. increases a countrys net exports and decreases its long-run growth path

C. decreases a countrys net exports and decreases its long-run growth path

D. decreases a countrys net exports and increases its long-run growth path

7040. Which of the following statements regarding the market for foreign currency exchange is true ?
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A. An increase in Pakistans net capital outflow increase the supply of rupees and the rupees depreciate

B. An increase in Pakistans net capital outflow increase the supply of rupees and the rupees appreciate

C. An increase in Pakistans net capital outflow increase the demand of rupees and the rupees depreciate

D. An increase in Pakistans net capital outflow increase the demand of rupees and the rupees appreciate

7041. If the EU imposes a quota on the importing of clothing produced in China, so reducing UK imports of clothing, which of the following is true regarding UK net exports ?
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A. Net exports will fall

B. Net exports will rise

C. Net exports will remain unchanged

D. None of these answers

7042. A sale maximizing firm will produce where ?
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A. sales revenue is maximized

B. MC = MR

C. AR minus AC is maximized

D. quantity sold is maximized

7043. Identify below those who are not stakeholders in a company ?
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A. Customers

B. None of the above

C. Employees

D. Owners

7044. The traditional profit-maximizing theory of the firm has been criticized by some economists because ?
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A. firms do not know how to maximize profits.

B. firms have other aims

C. it does not explain monopolistic competition

D. Both the first and second option
7045. The merger of fiber producer and a clothing firm would be _____ merger?
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A. conglomerate

B. homogeneous

C. horizontal

D. vertical
7046. The divorce of ownership and control tends to occur in ?
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A. sole proprietors

B. public limited companies

C. partnerships

D. monopolies

7047. The merger of a clothing firm and a software producer would be a _______ merger?
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A. homogeneous

B. horizontal

C. vertical

D. conglomerate
7048. When firm build in Organizational slack they do this in order to ?
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A. cope with unforeseen changes

B. maximize growth.

C. minimize conflict within the firm

D. both options one and three
7049. Galbraiths idea that firms are controlled by a technostructure supports _________ theories?
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A. classical economic

B. Williamsons

C. monetarist

D. Marxist

7050. Firms that engage in satisficing behavior are likely to be ?
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A. Like other firms in their industry.

B. growth maximisers.

C. leading firms in their industry

D. unlike other firms in their industry