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
701. If a country has a burden of debt it cannot sustain it can ?
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A. reschedule debt

B. get a loan from an international organization

C. default on the loan

D. any of the above
702. LDCs are reluctant to pursue development through the export of primary products because of ____ and _____ ?
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A. The upward trend in commodity prices the stability of primary products real prices

B. The upward trend in commodity prices, the volatility of primary products real prices

C. The downward trend in commodity prices the stability of primary products real prices

D. The downward trend in commodity prices the volatility of primary products real prices
703. Economic development refers to ?
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A. economic growth

B. economic growth plus changes in (c) output distribution and economic structure

C. improvement in the well-being of the urban population

D. sustainable increase in Gross National Product

704. 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. Singapore (1994)

C. Brazil (1998)

D. Mexico (1994)

705. Refer to Exhibit 6. Suppose the economy is operating at point (D) As people revise their price expectations ?
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A. The short-run Phillips curve will shift in the direction of the short-run Phillips curve associated with an expectation of 3 percent inflation

B. The short-run Phillips curve will shift in the direction of the short-run Phillips curve associated with an expectation of 6 percent inflation

C. The short-run Phillips curve will shift in the direction of the short-run Phillips curve associated with an expectation of 9 per cent inflation

D. The long-run Phillips curve will shift to the left
706. The Baker plan (1985) stressed _______ and the Brady Plan (1989) emphasized _______ respectively?
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A. debt relief for at leas three-fourths of the eligible HIPCs; shorter requirements for adjustment programs

B. IMF decentralization; World Bank dissolution

C. new loans from multilateral agencies and surplus countries; debt reduction or write-downs

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

707. Highly-indebted poor countries (HIPCs) include________________?
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A. Tanzania

B. Benin

C. Bolivia

D. #NAME?

708. Free trade is based on the principle of ?
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A. Economies of advantage

B. Comparative advantage

C. Production possibility advantage

D. Comparative scale

709. The most wave of globalization which began in the 1980s has emphasized the outsourcing of ?
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A. services and white-collar jobs

B. manufacturing and blue-collar jobs

C. agriculture and farming jobs

D. natural resource extraction and mining jobs

710. An increase in expected inflation ?
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A. shifts the short run Phillips curve downward and the unemployment inflation trade-off is less favorable.

B. shifts the short-run Phillips curve upward and the unemployment inflation trade-off is more favorable

C. Shift the short-run Phillips curve downward and the unemployment inflation trade-off is more favorable

D. Shifts the Short run Phillips curve upward and the unemployment inflation trade-off is less favorable
711. Which of the following would not cause a shift in the long-run aggregate supply curve ?
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A. An increase in the available capital

B. All of these answers shift the long-run aggregate supply curve

C. An increase in price expectations

D. An increase in the available labour

712. Mosley Harrigan and Toye refer to the IMF and World Bank as________________?
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A. the initiator of HIPCs debt forgiveness

B. a U.S monoply

C. excessively committed to writing down LDC debt

D. a managed duopoly of policy advice
713. Indicate below what is NOT a main macroeconomic goal ?
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A. Reducing unemployment

B. Reducing inflation

C. Increasing North Sea oil production

D. Achieving a sustainable rate of economic growth

714. Macroeconomics is the branch of economics that deals with ?
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A. The functioning of individual industries and the behavior of individual decision-making units business firms and households

B. the economy as a whole

C. Only the long run adjustments to equilibrium in the economy

D. imperfectly competitive markets:

715. The balance of trade is a record of ?
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A. the value of merchandise exports minus imports

B. the current account plus capital account

C. exports and imports of financial assets

D. the net export of goods and services

716. The largest amount of trade with the United States in recent years has been conducted by ?
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A. Canada

B. United Kingdom

C. Mexico

D. Germany

717. A tariff causes domestic firms to ________ and consumers to?
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A. underproduce, under consume

B. overproduce, under consume

C. Overproduce, overconsume

D. underproduce, overconsume

718. Macroeconomic theory that emphasized the theories of Keynes and de-emphasized the classical theory developed as the result of the failure of ?
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A. The classical model to explain the prolonged existence of high unemployment during the Great Depression

B. economic theory to explain the simultaneous increases in inflation and unemployment during the 1970s

C. the economy to grow at a rapid rate during the 1950s

D. fine tuning during the 1960s

719. When all of the debit or credit items in the balance of payments are combined ?
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A. merchandise imports equal merchandise exports

B. services exports equal services imports

C. the total surplus or deficit equals zero

D. capital imports equal capital exports

720. The Human Development Index (HDI) summarizes a great deal of social performances in a single composite index combining ?
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A. minimum schooling, adult literacy and tertiary educational attainment

B. human resource training development and R&D

C. disparity reduction rate, human resource development rate and the composite index

D. longevity, education and living standard
721. 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. Pakistan and Afghanistan

C. Iraq and Iran

D. Saudi Arabia and Jordan

722. Aggregate demand without a foreign sector is the sum of ?
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A. C + G

B. C + 1

C. I + G

D. C + 1 + G
723. Real GDP is nominal GDP measured in constant ?
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A. interest rates

B. prices

C. taxes

D. exchange rates

724. A major dependency theorist Andre Gunder Frank Suggests that the following economic activities have contributed to underdevelopment:
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A. #NAME?

B. Forming an unskilled labor force to work in factories and mines and on plantations

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

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

725. According to the Phillips curve, in the short run, if policy makers choose an expansionary policy to lower the rate of unemployment ?
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A. The economy will experience a decrease in inflation

B. The economy will experience an increase in inflation

C. None of these answers

D. Inflation will be unaffected if price expectations are unchanging

726. Net transfers are______________?
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A. investment loans, and grants from overseas minus international resource outflows

B. net international resource flows minus net international interest payments and profit remittances

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

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

727. The record of a countrys transactions in goods, services and assets with the rest of the world is its ?
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A. current account

B. balance of trade

C. capital account

D. balance of payments
728. Which of the following factors potentially increased the vulnerability to the 1997 Asian financial and currency crisis ?
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A. massive reverse outflows of capital

B. Symmetric informational in financial market

C. technological transfer from DCs

D. trade account surplus

729. According to the next basic needs include ?
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A. food, clothing and housing

B. health, education and quality housing

C. longevity and living standards

D. adequate nutrition, primary education health sanitation water supply and housing
730. The index used most often to measure inflation is the?
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A. GDP deflator

B. consumer price index

C. wholesale price index (WPI)

D. Producer price index (PPI)

731. Along a short-run Phillips curve, ?
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A. a higher rate of inflation is associated with a lower unemployment rate

B. a higher rate of inflation is associated with a higher unemployment rate

C. a higher rate of growth in output is associated with a lower unemployment rate

D. a higher rate of growth in output is associated with a higher unemployment rate.

732. Direct investment and security purchases are classified as ?
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A. capital account transactions

B. merchandise trade transactions

C. unilateral transfer transactions

D. current account transactions

733. Which of the following statements about economic fluctuations is true ?
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A. A variety of spending income, and output measures can be used to measure economic fluctuation because most macroeconomic quantitties tend to fluctuate together

B. A recession is when output rises above the natural rate of output

C. None of these answers

D. A depression is a mild recession

734. In a macroeconomic model without foreign trade or a government aggregate demand is the sum of ?
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A. personal consumption and private investment

B. None of the above

C. personal saving and private investment

D. personal saving and personal consumption

735. Which of the following is will NOT reduce capital flight from source countries ?
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A. higher taxes on capital gains

B. market liberalization

C. more efficient state enterprises

D. dependable positive real interest rates

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

B. John Maynard Keynes

C. John Stuart Mill

D. Adam Smith

737. A nation wishing to reduce its current account deficit would be advised to ?
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A. reduce government taxes

B. increases private investment spending

C. engage in more government spending

D. decrease domestic consumption
738. LDCs often have a comparative advantage in the production of ?
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A. manufactured products

B. financial services

C. primary products

D. intermediate products

739. The theory that states that a country has a comparative advantage in the production of a product if that country is relatively well endowed with inputs used intensively in the production of that product is the?
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A. Ricardo Malthus theorem

B. Heckscher Ohlin theorem

C. Friedman Samuelson theorem

D. Lucas-Laffer theorem

740. All of the following are high income countries except ?
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A. the United Kingdom

B. Japan

C. Singapore

D. Hungary
741. OPEC is the ?
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A. Organization of Pre-European Commission

B. Organization of Petroleum Exporting Country

C. Organization of Problematic Economies Committee

D. Oil Producing Economies Caucus

742. In the model of aggregate demand and aggregate supply, the initial impact of an increase in consumer optimism is to ?
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A. shift the short-run aggregate supply curve to the right

B. shift the aggregate demand curve to the left

C. shift the short-run aggregate supply curve to the left

D. shift the aggregate demand curve to the right
743. Credit (-) items in the balance of payments correspond to anything that ?
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A. decreases the demand for foreign exchange

B. increases the domestic money supply

C. involves receipts from foreigners

D. involves payments to foreigners
744. In a floating exchange rate system ?
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A. The Balance of payments should always be in surplus

B. The government intervenes to influence the exchange rate

C. The exchange rate should adjust to equate the supply and demand of the currency

D. The Balance of payments will always equal the government budget

745. Surplus labor theories assume that ?
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A. urban unemployment is high in LDCs

B. the marginal products of labor is closed to zero in LDCs

C. LDCs are overpopulated

D. labor contributes nothing to output in LDCs

746. In balance of payments accounting tourism and travel are classified in the ?
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A. unilateral transfers account

B. merchandise trade account

C. capital account

D. services account
747. 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. 200,000,000/890

B. 2000 890

C. 200/890

D. 200

748. Nominal GNP measures income ?
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A. corrected for changes in interest rates

B. corrected for tax changes

C. At the present time

D. At current prices
749. International trade in goods and services tends to ?
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A. Lessen the amount of competition facing home manufacturers

B. Keep all domestic costs and prices at the same level

C. Increase the amount of competition facing home manufacturers

D. Increase all domestic costs and prices

750. Refer to Exhibit 6.If People in the economy expect inflation to be 3 percent and inflation is 3 percent the economy is operating at point ?
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A. H

B. I

C. b

D. a