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
7751. An outside professional conducts an examination of companys accounting records in order to determine whether the company is maintaining records according to the generally accepted accounting principles. What this examination is called ?
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A. Accounting

B. Audit

C. Checking

D. Stock-taking

7752. GNP includes ?
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A. A loan from ones parents

B. A brokers commission

C. Gifts and donations

D. A loan from a bank

7753. The term prospectus refers to______________?
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A. Formal summary of proposed project

B. Document describing chief features of something for participants

C. Both of them

D. None of them

7754. In Planned economy Production and distribution of Wealth is under control of_____________?
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A. Government

B. Private sector

C. Bank

D. None of the above

7755. What is meant by excise?
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A. A tax levied on certain articles produced and consumed in a country

B. A licensing charge or a fee levied for certain privileges

C. Both of them

D. None of them

7756. During a given period how the economic activity of a nation is measured?
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A. Gross National product (GNP)

B. Gross National output (GNO)

C. Gross National Output

D. Gross Domestic Product (GOP)

7757. Name a market that is characterized by a small number of producers who often act together to control the supply of a particular good and its market price ?
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A. Oligopsony

B. Grey market

C. Oligopoly

D. Monopoly

7758. Cost of production plus a fixed rate of profit is called ?
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A. Cost effective

B. Consumer price

C. cost plus

D. End price

7759. What is called that executive who is brought in to turn a company around and make it profitable ?
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A. Super manager

B. Company doctor

C. Manager doctor

D. Savior

7760. Crop grown for sale is called?
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A. Business Crop

B. Earning Crop

C. Cash crop

D. Money Crop

7761. Name the organization in which people are associated together for a common purpose under a common name. This organization is recognized and created by law ?
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A. Cooperative

B. Corporation

C. Limited Company

D. Company

7762. The term Remittance refers to_______________?
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A. Sending of money to someone at distance

B. The sum of money sent

C. Both of them

D. None of them

7763. In which capacity does a person stand to gain from deflation ?
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A. As a pensioner

B. As a debtor

C. As an entrepreneur

D. As an equity-holder

7764. The amount that is paid for carriage of goods by chips, railways, airways etc is called ?
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A. Rent

B. Freight

C. Hire and Fire

D. Transportation Changes

7765. Which of the following is called a wholly or partially owned company what is the part of the large corporation?
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A. Small holding

B. Baby company

C. Subsidiary

D. Child company
7766. Which of the following payment instruments introduced by the banks is known as plastic money ?
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A. Demand Drafts

B. Bearer cheques

C. Credit Cards

D. Gift Cheques

7767. Which situation will a country face, if the birth rate falls sharply, while the death rate remains unchanged ?
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A. a more youthful population

B. an ageing population

C. a fall in living standards

D. an increase in population

7768. Forex stands for ?
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A. For examine

B. Foreign exports

C. None of these

D. Foreign exchange
7769. By Which scale the value of all economic activity produced by a nation during a given period is measured ?
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A. Gross National output

B. Gross National Product (GNP)

C. Gross National output (GNO)

D. Gross Domestic Product (GOP)

7770. What is referred by interest ?
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A. payment made for the use of banks money

B. Share in profit

C. Payment made for the use of another persons money

D. Devaluation in the currency

7771. What is called the result of a states borrowing from its population, from foreign governments or from international institutions ?
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A. National debt

B. Public debt

C. Both of them

D. None of them

7772. Which country is the chief exporter of coffee?
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A. Brazil

B. USA

C. Mexico

D. Australia

7773. What is mortgage______________?
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A. Guarantee for debt

B. Conveyance of company security for debt

C. Assurance of debt repayment

D. Conveyance of property as security for debt
7774. Pakistan follows the policy of_______________?
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A. controlled exchange rate

B. Fixed exchange rate

C. Flexible exchange rate

D. Increasing exchange rate

7775. What is called that bank which regularly accepts foreign currency-denominated deposits and makes foreign currency-denominated deposits and makes foreign currency loans ?
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A. Multinational Bank

B. Foreign bank

C. International Bank

D. Eurobank

7776. Which of the following is true about the consumers optimum consumption bundle? At the optimum ?
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A. all of these answers are true

B. the slope of the indifference curve equals the slope of the budget constraint

C. none of these answers are true

D. the indifference curve is tangent to the budget constraint

E. the relative prices of the two goods equals the marginal rate of substitution

7777. Which of the following statements is not true with regard to the standard properties of indifference curves ?
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A. Indifference curves are downward sloping

B. Indifference curves do not cross each other

C. indifference curves are bowed outward

D. Higher indifference curve is preferred to lower ones

7778. If leisure is a normal good, an increase in the wage ?
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A. will always increase the quantity of labor supplied

B. will always decrease the amount of labor supplied

C. will increase the amount of labor supplied if the income effect outweighs the substitution effect

D. will increase the amount of labor supplied if the substitution effect outweighs the income effect
7779. The slope at any point on an indifference curve is known as ?
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A. the marginal rate of trade-off.

B. the marginal rate of substitution

C. the trade-off rates

D. the marginal rate of indifference

7780. The limit on the consumption bundles that a consumer can afford is known as ?
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A. the consumption limits

B. the marginal rate of substitution

C. an indifference curve

D. the budget constraint
7781. If an increase in a consumers income causes the consumer to increase his quantity demand of a good, then the good is ?
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A. a substitute good

B. an inferior good

C. a complementary good

D. a normal good
7782. Refer to Exhibit 4. Suppose that the consumer must choose between buying socks and belts Also suppose that the consumers income is 100 If the price of a belt is 10 and the price of a pair of socks is 5, the consumer will choose to buy the commodity bundle represented b point ?
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A. Y

B. X

C. the optimal point cannot be determined from this graph

D. Z
7783. Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumers income is 100 A pair of socks is ?
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A. none of these answers

B. an inferior effect

C. a Geffen good

D. a normal good
7784. The consumers optimal purchase of any two goods is the point where ?
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A. the consumer has reached the highest indifference curve

B. the budget constraint crosses the indifference curve

C. the two highest indifference curves cross

D. the consumer reaches the highest indifference curve subject to remaining on the budget constraint
7785. Suppose we measure the quantity of good X on the horizontal axis and the quantity of good Y on the vertical axis If indifference curves are bowed inward, as we move from having an abundance of good X to having an abundance of good Y, the marginal rate of substitution of good Y for good X (the slope of the indifference curve) ?
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A. could rise or fall depending on the relative prices of the two goods.

B. stays the same

C. falls

D. rises
7786. Which of the following is not true regarding the outcome of a consumers optimization process ?
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A. The consumers indifference curve is tangent to his budget constraint

B. The consumer is indifferent between any two points on his budget constraint

C. The marginal rate of substitution between goods is equal to the ratio of the prices between goods

D. The consumer has reached his highest indifference curve subject to his budget constraint

E. The marginal utility per dollar spent on each good is the same

7787. If an increase in a consumers income causes the consumers to decrease her quantity demanded of a good, then the good is ?
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A. a normal good

B. an inferior good

C. a substitute good

D. a complementary good

7788. A change in the relative prices of which of the following pair of goods would likely cause the smallest substitution effect ?
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A. right shoes and left shoes

B. petrol from BP and petrol from shell

C. kit-Kat chocolate snacks and Twix chocolate snacks

D. coke and Pepsi

7789. Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumers income is 100 Suppose that the price of a pair of socks falls from 5 to 2 The income effect is represented by the movement from point ?
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A. Z to point X

B. X to point Y

C. Y to point X

D. X to point Z

7790. If consumption when young and when old are both normal goods, an increase in the interest rate ?
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A. will always decrease the quantity of saving

B. will increase the quantity of saving if the substitution effect outweighs the income effect

C. will always increase the quantity of saving

D. will increase the quantity of saving if the income effect outweighs the substitution effect

7791. uppose a consumer must choose between the consumption of sandwiches and pizza. If we measure the quantity of pizza on the horizontal axis and the quantity of sandwiches on the vertical axis and if the price of a pizza is Rs10 and the price of a sandwich is Rs5, then the slope of the budget constraint is ?
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A. 10

B. 2

C. 2-Jan

D. 5

7792. If income where to double and prices were to to double the budget line would ?
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A. stay the same

B. rotates outward

C. shift inward in parallel fashion

D. rotate inward

E. shift outward in a parallel fashion

7793. The change in consumption that results when a price change moves the consumer along a given indifference curve is known as the ?
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A. substitution effect

B. income effect

C. inferior effect

D. normal effect

E. complementary effect

7794. Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumers income is 100 Suppose that the price of a pair of socks falls from 5 to 2 The substitution effect is represented by the movement from point ?
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A. X to point Z

B. X to point X

C. Z to point X

D. Y to point X

7795. indifference curves for perfect substitutes are ?
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A. right angles

B. straight lines

C. bowed inward

D. nonexistent

E. bowed outward

7796. In the UK, electricity industry parts are a ____ and other parts are ___ ?
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A. natural monopoly; potentially competitive

B. monopolistic competition duopoly

C. nationalized; privatized

D. cartel; a sellers market

7797. The external benefits of using cars are ____ and the external costs are _____?
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A. high; high

B. low; high

C. low; low

D. high; low

7798. Privatization is the transfer of ?
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A. publicly held stock to private individuals.

B. privately owned businesses to the government sector

C. corporately owned businesses to individuals

D. government businesses to the private sector
7799. De-regulation is where the government ?
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A. removes barriers to entry

B. removes barriers to entry and minimum product quality standards

C. breaks up private sector monopolies.

D. imposes higher standards of conduct

7800. A conglomerate merger is a merger of ?
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A. firms producing unrelated products.

B. firms at various stages in production process.

C. firms producing the same product

D. firm producing complementary products