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
7301. The developed nations have only about 15% of the worlds population, but they are estimated to consume _______ of the worlds output ?
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A. 80%

B. 50%

C. 65%

D. 25%

7302. Most of the Third World/Fourth World debt was incurred in ?
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A. the early 1960s

B. The colonial period

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

D. The early 1950s

7303. An agreement between a borrower country and the International Monetary Fund in which the country agrees to revamp its economic policies to provide incentives for higher export earnings and lower imports is a ?
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A. program for growth

B. debt rescheduling agreement

C. stabilization program

D. debt service agreement

7304. Structuralist economists who study developing countries focus their attention on ?
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A. changes in industrial structure over time

B. the caste of class structure and discrimination in the labor market

C. specific barriers to development and how to overcome them

D. The impact of international trade structures on developing countries

7305. A policy of developing local industries that can compete with imports is referred to as ?
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A. export promotion

B. industrial promotion

C. unbalanced growth

D. import substitution
7306. Many developing countries instituted import substitution policies because ?
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A. their terms of trade were deteriorating

B. their terms of trade were improving

C. the price of goods they exported were increasing

D. the prices of the goods they imported were falling

7307. Which of the following factors has been suggest as an explanation for the lack of economic growth in many poor nations ?
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A. An adequate level of social overhead capital

B. The supply of human resources is too high

C. The constraints imposed by dependency on the already-developed nations

D. A steady rate of capital formation

7308. Developing countries, if compared with other countries, have ?
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A. a greater degree of equality in the income distribution

B. a lower rate of illiteracy

C. a lower infant mortality rate

D. a smaller percentage of the labor force in urban areas
7309. 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

7310. Low agricultural productivity in developing countries is mainly caused by ?
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A. shortages of inputs including land

B. an over-investment in farm equipment

C. a lack of effective demand for food products

D. migration from rural areas to urban areas

7311. The term Fourth World has been coined to describe ?
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A. countries that have fallen far behind the economic advances of the rest of the world

B. Countries that still have a communist government like China and Cuba

C. the newly industrialized countries like Korea, Taiwan Malaysia

D. The republics of the former Soviet Union

7312. The policy that has been the most successful in increasing agricultural output in developing countries is ?
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A. produce marketing boards

B. import substitution

C. land reform

D. mechanization

7313. Debt-re-scheduling is ?
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A. regular payments of interest and repayments of capital

B. a program of austerity measures agreed with the IMF to make repayment possible

C. a change in debt repayment due to inability to pay

D. an agreement with the World Bank to turn some of a debt into other forms

7314. Experiences over the last three decades has suggested that in order for economic development to occur, it is necessary for an economy to ?
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A. stress agricultural development over industrial development

B. promote industrial development over agriculture

C. use a balanced strategy that promotes both agricultural and industrial development

D. stress the importation of agricultural products and the export of manufactured goods

7315. OECD stands for ?
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A. Open Economies Caucus on Development

B. Oil Exporting Countries Development

C. Organization for Economic Cooperation and Development and Development

D. Organization for Environmental cooperative Department

7316. The Vicious circle theory states that ?
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A. low income levels create pressure for cheap imports

B. growing government assistance create addiction to welfare programs

C. low per capita incomes creates low savings that keep incomes low

D. low income levels create pressure for money creation

7317. The synchronized application of capital to a wide range of different industries is called __________ by its advocates?
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A. indivisibilities

B. balanced growth

C. elasticity of capital

D. capitalization

7318. For Rosentein Rodan a major indivisibility is in ?
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A. infrastructure

B. agriculture

C. Supply

D. services

7319. One criticism of Rostows theory of economic growth is that ?
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A. his hypothesis of the stages of growth is difficult to test empirically

B. there is no explanation of why growth occurs after takeoff

C. All of the above are correct

D. much available data contradicts his thesis about the takeoff stage

7320. Rostows economics stages are ?
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A. the learning curve the age of high mass consumption post takeoff, and the drive to maturity

B. the preconditions for consumption the replication the drive to maturity and the age of high mass consumption

C. The traditional society the preconditions for takeoff, the takeoff, the drive to maturity and the age of high mass consumption

D. The preconditions for takeoff, the takeoff, the drive to maturity and the age of creative destruction

7321. According to the supply side of the vicious circle theory of development a country is poor because ?
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A. resource allocation is poor

B. it was previously too poor to save and invest

C. underemployment is too widespread

D. technology levels do not allow for self sufficiency

7322. Which of the following was not a classical economist ?
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A. Thomas R. Malthus

B. John Maynard Keynes

C. Adam Smith

D. John Stuart Mill

7323. The Vicious circle theory indicates that ?
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A. market size is large in LDCs

B. poverty perpetuates itself in mutually reinforcing circles on supply and demand sides

C. as countries grow richer they save less

D. a country is poor because it has lower productivity but high savings

7324. Karl Marxs historical materialism views were shaped by all of the following EXCEPT ?
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A. The rise of industrial and capitalist production

B. Political and labor revolts

C. a growing spiritual rationalism

D. The French Revolution

7325. A major dependency theorist Andre Gunder Frank Suggests that the following economic activities have contributed to underdevelopment:
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A. Forming an unskilled labor force to work in factories and mines and on plantations

B. #NAME?

C. Closing the economy to trade with and investment from, developed countries

D. Workers migrating from villages to foreign-dominated urban complexes

7326. 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. Rostows model

B. classical appraoch

C. neoclassicism

D. Marxism

7327. Criticisms of Rostows stages of development include ?
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A. conditions for takeoff are contradicted by historical evidence

B. the difficulty of testing the stages scientifically

C. characteristics of one stage are not unique to that stage

D. All of the above are correct
7328. Barans Neo-Marxist thesis has been criticized for ignoring the probability that power is frequently ?
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A. derived from domestic opponents of nationalism

B. based on an alliance between peasants and the foreign bourgeoisie

C. based on an alliance between landowners and peasants

D. transferred from one elite to another when revolution occurs
7329. Adam Smith advocated ?
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A. laissez faire

B. #NAME?

C. the invisible hand

D. competitive markets

7330. What is Barans explanation for underdevelopment in Asia, Africa, and Latin America ?
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A. reactionary ruling coalitions

B. monopolistic business from abroad

C. weak domestic middle class

D. All of the above
7331. The essential difference between capitalism and socialism is that ?
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A. capitalism exploits the worker and socialism exploits the property owner

B. capitalism relies on consumer satisfaction to dictate choices and socialism relies on producer satisfaction

C. capitalism relies on the market to make economic decisions and socialism uses central planning

D. capitalism grows through rent seeking and socialism grows through government direction

7332. Surplus labor theories assume that ?
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A. the marginal products of labor is closed to zero in LDCs

B. urban unemployment is high in LDCs

C. LDCs are overpopulated

D. labor contributes nothing to output in LDCs

7333. Feudalism was undercut by?
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A. the rise of the business corporation

B. the migration of serfs to the town

C. #NAME?

D. factory competition with handicraft and manorial production

7334. The Lawis model explains how growth gets started in a less developed economy ?
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A. with an average product of labor in agriculture that is negative

B. with a traditional agricultural sector and an industrial capitalist sector

C. with a downward-sloping supply curve of labor

D. with a marginal productivity of labor zero or negligible in industry

7335. A theory ?
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A. provides an explanation of all factors influencing economic growth.

B. #NAME?

C. explains causal relationships among variables

D. is a systematic explanation of relationships between economic variables

7336. The Ultimate effect of the invisible hand of Adam Smith is that in a competitive economy everyone ?
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A. benefits if each acts in his/her own interest

B. should act to maximize economic growth

C. should act to promote the public interest

D. will increase their profits in a free market

7337. The Harrod Domar growth model suggests that growth is ?
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A. directly related to the capital/output ratio and inversely related to savings

B. indirectly related to savings and the capital/output ratio

C. directly related to savings and the capital/output ratio

D. directly related to savings and inversely related to the capital/output ratio
7338. Point out the use of the term price fixing ?
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A. Unlawful agreement between manufacturers to set and maintain specified price on typically competing products

B. Artificial setting of price of commodity by government

C. Both of them

D. None of them

7339. What is called increased demand for a limited supply of goods and service result of which is increase in consumer prices ?
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A. Demand push

B. Demand supply

C. Demand pulls

D. Cost pull

7340. What is Euro ?
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A. Deposit outside ones home country but in the home country currency

B. European currency unit, introduced on Jan, 1 1999

C. Both of them

D. None of them

7341. Which city in Germany has the distinction of housing the first car manufacturing plant in the world ?
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A. Berlin

B. Frankfurt

C. Bonn

D. Stuttgart

7342. How is termed the governments order to prevent the arrival or departure of merchant ships or to restrict import or export of specified or all goods with a foreign nation ?
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A. Ban

B. Embargo

C. Restriction

D. Contraband

7343. Treasury bill is used for_________________?
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A. Getting long term loans

B. Treasury bill in not credit instrument

C. Treasury bill is a govt. tax bill

D. Getting short term loans
7344. Which of the following is the Pakistans central bank ?
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A. State Bank

B. National Bank

C. Both of them

D. None of them

7345. Blue chip company is used in the context of general equities. What does it refer ?
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A. Large and creditworthy company

B. A multinational company

C. A conglomerate company

D. A consortium of companies

7346. What is Dumping ?
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A. Scale of goods in large quantities and at low price

B. Scale of goods in large quantities with High price

C. sale of goods in large quantities with high quality

D. Scale of goods in large quantities with low quality

7347. The standard of living in a country is represented by its ?
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A. National income

B. None of these

C. Per capita income

D. Poverty ratio

7348. Which is most likely to cause a more even distribution of income ?
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A. An increase in managers salaries

B. An increase in indirect taxes

C. An increase in progressive taxation

D. An increase in the rate of inflation

7349. Gross Domestic Product (GDP) is__________________?
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A. Economic activities of federal government

B. Economics output of a country

C. Value of all economic activity with in a nations border

D. None of these

7350. Bank issued a document that authorizes the bearer to receive money from one of its foreign branches or from another bank abroad. What such document is called ?
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A. Letter of expression

B. Letter of intent

C. Demand draft

D. letter of Credit