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
7051. If firms satisfice this means that ?
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A. long-run profits are maximized

B. objectives such as profit are not maximized

C. managers need to be paid enough to stop them leaving the company

D. short-run profits are maximized

7052. A firm may be unable to maximize profits because it ?
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A. has too much information

B. has too little information

C. The first and third option

D. does not know its MC and MR

7053. Behavioral theories of the firm concentrate on the _______ interests of _______?
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A. common; different parts of the firm

B. conflicting; managers

C. common; mangers

D. conflicting; different parts of the firm
7054. The divorce of owner ship and control causes a problem usually referred to by economists as ?
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A. moral hazard

B. profit myopia

C. principal-agent problem.

D. merger mania.

7055. Williamson suggests that managers might NOT try to achieve ?
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A. a large number of subordinates

B. maximum profits.

C. job security

D. respect of other managers.

7056. Fear to take-overs will lead firms to maximize ?
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A. profits.

B. sales revenue

C. managers utility

D. growth.

7057. Public limited companies may not maximize their profits because ?
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A. they are afraid of encouraging takeovers.

B. shareholders have little control over managers.

C. shareholders want higher dividends.

D. both the first and third option.

7058. Sales maximization is likely to take place in markets that are ?
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A. contestable

B. perfectly competitive

C. export-oriented

D. oligopolistic
7059. Which of the following is NOT a common reason for a merger?
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A. To achieve economies of scale

B. To achieve faster growth

C. To increase competition

D. To reduce uncertainty

7060. Growth maximization is the same as ?
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A. Sales maximization

B. maximization the growth of sales revenue.

C. long-run profit maximization.

D. sales revenue maximization

7061. The merger of two clothing firms would be a ____ merger?
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A. vertical

B. homogeneous

C. conglomerate

D. horizontal
7062. A private good is ?
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A. rival but not excludable

B. not rival but excludable

C. both rival excludable

D. neither rival nor excludable

7063. A positive externality affects market efficiency in a manner similar to a ?
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A. rival good

B. public good

C. common resource

D. private good

7064. Which of the following are potential solutions to the problem of air pollution?
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A. Grant right of the clean air to citizens so that firms must purchase the right to pollute

B. all of these answers

C. Auctions off pollution permits.

D. Regulate the amount of pollutants that firms can put in the air

7065. If one persons consumption of a good diminishes other peoples use of the good, the good is said to be ?
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A. a good produced by a natural monopoly

B. a common resource

C. excludable

D. rival
7066. A common resource is ?
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A. not rival but excludable

B. both rival and excludable

C. rival but not excludable

D. neither rival nor excludable

7067. Public goods are difficult for a private market to provide due to ?
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A. The free-rider problem.

B. the rivalness problem

C. the public goods problem

D. the Tragedy of the Commons.

7068. Suppose each of 20 neighbours on street values street repairs at 3000 the cost of the street repair is 40,000 which of the following statements is true ?
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A. It is efficient for each neighbour to pay 3,000 to repair the section of street in front of his/her home

B. None of these answers are true

C. it is not efficient to have the street repaired

D. it is efficient for the government to tax the resident 2,000 each and repair the road
7069. If a person can be prevented from using a good, the good is said to be ?
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A. a public goods

B. a common resource

C. rival

D. excludable
7070. A person who regularly watches BBC television programs in the UK but fails to pay their TV licence fee is known as ?
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A. a costly rider

B. excess baggage

C. a common resource

D. an unwelcome rider

E. a free rider
7071. Which of the following is an example of a public good ?
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A. Whales in the ocean

B. apples on a tree in a public park

C. national defense

D. hot dogs at a picnic

7072. A free rider is a person who ?
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A. receives the benefits of a good but avoids paying for it.

B. fails to produce goods but is allowed to consume goods.

C. pays for a good but fails to receive any benefit from the good

D. produces a good but fails to receive payment for the good

7073. The Tragedy of the Commons is a parable that illustrates why?
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A. private goods are under consumed

B. public goods are underproduced

C. natural monopolies overproduce goods.

D. common resources are overconsumed
7074. A negative externality affect market efficiency in a manner similar to ?
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A. a private good

B. a common resource

C. an excludable good.

D. a public good.

7075. When markets fail to allocate resources efficiently, the ultimate source of the problem is usually ?
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A. that prices are not high enough, so people overconsume

B. government regulation

C. that property rights have not been well established

D. that prices are not low enough so firms over produce

7076. A good produced by a natural monopoly is ?
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A. rival but not excludable

B. neither rival nor excludable

C. not rival but excludable

D. both rival and excludable

7077. When government employ cost-benefit analysis to help them decide whether to provide a public good, measuring benefits is difficult because ?
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A. the benefits are infinite because a public good is not rival and an infinite amount of people can consume it at the same time

B. respondents to naires have little incentive to tell the truth.

C. there are no benefits to the public since a public good is not excludable

D. one can never place a value on human life or the environment

7078. A public good is ?
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A. neither rival nor excludable

B. rival but not excludable.

C. both rival but excludable

D. not rival but excludable

7079. Which of the following is an example of a common resource ?
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A. a firework displays

B. iron one

C. a national park

D. national defense

7080. Suppose that requiring motorcycle riders to wear helmets reduces the probability of a motorcycle fatality from 0.3 percent to 0.2 percent over the lifetime of a motorcycle rider and that the cost of lifetime supply of helmets is Rs5000. It is efficient for the government to require riders to wear helmets if human life is valued at ?
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A. Rs50,000 or more

B. Rs 150 or more

C. Rs 500,000 or more

D. Rs100 or more

E. Rs500 or more

7081. A congested toll road is ?
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A. a private good

B. a good produced by a natural monopoly

C. a public good

D. a common resource

7082. All of the following are high income countries except ?
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A. Japan

B. U.K

C. Singapore

D. South Africa
7083. According to the next basic needs include ?
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A. longevity and living standards

B. food, clothing and housing

C. health, education and quality housing

D. adequate nutrition, primary education health sanitation water supply and housing
7084. Longevity is proxy for ________ in the Human Development Index?
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A. living standard

B. health and nutrition

C. Purchasing Power Parity

D. infant mortality

7085. According to chapter 2 in the text which of the following is true ?
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A. The fastest growing countries must be the ones with the highest per capita GNP

B. Today all high and Upper-middle income countries are Western.

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

D. 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
7086. Which of the following countries is not a low income country ?
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A. Indonesia

B. Malaysia

C. Nigeria

D. India

7087. The three measure of welfare indicators above comprise the ?
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A. Human Development Index

B. Physical Quality of Life Index

C. Purchasing Power Parity

D. The Laspeyres index

7088. PPP is ?
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A. a theory that tells us that exchanged rates between currencies are in equilibrium when their purchasing power is the same in both countries

B. GDP divided by exchange rate

C. a measure of income inequality

D. a measure of infant mortality in developing countries

7089. The formula to calculate economic growth from 2001 to 2002 is given by ?
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A. [(GDP2001 GDP2002]100

B. [(GDP2002 + GDP2001)/GDP2001]100

C. [(GDP2002 GDP2001) GDP2001]100

D. [(GDP2002 GDP2001)/GDP2001]100
7090. Which of the following statement is not true about LDCs ?
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A. A greater share of GNP would have to be devoted to education to attain the same primary enrollment rates as in the U.S

B. Most LDCs have less than 1/10 the per capita GNP of the U.S

C. Most LDCs have a greater shortage of qualified teachers than the U.S does

D. Setting up western labor standard and minimum wages in labor-abundant LDCs is sensible
7091. Economic growth from current year (c) to previous year (p) is given by ?
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A. GNPc DGPp100)

B. [GDPp GDPc]100

C. [(GDPc GDPp) DGPp]100

D. [(GDPc GDPp)/ DGPp]100
7092. 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. Asia, America and Europe

C. Southeast Northeast and Southwest

D. Low income , middle income and high income
7093. Which of the following are low income countries income country ?
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A. Mexico

B. Australia

C. United States

D. Canada

7094. If GDP for Palau a small country near southeast of the Philippines is $130 million in 2012 and its population is 20,000 GDP per capita is ?
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A. 650

B. 130

C. 0.0065

D. 6500
7095. Infant mortality ?
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A. is life expectancy up to age 3

B. is defined as the annual number of deaths of infant under 1 year old per 1,000 live births

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

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

7096. Imitating labor standards from rich countries in LDCs may increase ?
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A. equality

B. poverty

C. employment

D. human development

7097. If GNP for Vatican City the smallest country in the world is 200 million euros in year 2011 and its population is 890 GNP per capita is_____________?
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A. 2000 890

B. 200

C. 200,000,000/890

D. 200/890

7098. The World Banks GNP per capita classification for low income middle income and high income countries respectively is ?
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A. less than $100, $100-$1000 and more than $1000

B. less than $5000, $5000-$15000 and more than $15000

C. less than $900, $900-$9000 and more than $9000

D. less than $5000, $5000-$150000 and more than $150000

7099. OPEC is the ?
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A. Organization of Petroleum Exporting Country

B. Organization of Problematic Economies Committee

C. Oil Producing Economies Caucus

D. Organization of Pre-European Commission

7100. The Paasche index uses _________ weights?
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A. base-year

B. fisher-ideal index

C. current-year

D. Purchasing Power Parity (PPP)