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
751. In the circular flow we would expect leakages to ___________ injections?
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A. be less or greater than

B. be greater than

C. equal

D. be less than

752. The Lawis model explains how growth gets started in a less developed economy ?
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A. with a downward-sloping supply curve of labor

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

C. with an average product of labor in agriculture that is negative

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

753. The key issues of macroeconomics are ?
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A. economic growth

B. inflation

C. All of the above

D. unemployment

754. When actual inflation exceeds expected inflation ?
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A. Unemployment is greater than the natural rate of unemployment

B. Unemployment is less than the natural rate of unemployment

C. People will reduce their expectations of inflation in the future

D. Unemployment is equal to the natural rate of unemployment

755. If goods are exported for less than societys marginal production cost and the marginal benefit to domestic consumers, it is likely that they benefit from?
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A. comparative advantage

B. a quota

C. an export subsidy

D. an import subsidy

756. If a countrys policy makers were to continuously use expansionary monetary policy in an attempt to hold unemployment below the natural rate the long-run result would be ?
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A. a decrease in the unemployment rate

B. All of these answers

C. an increase in the rate of inflation

D. an increase in the level of output

757. Current account deficit are offset by______________?
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A. merchandise trade surpluses

B. capital/financial account surpluses

C. merchandise trade deficits

D. capital/financial account deficits

758. A current account surplus implies that ?
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A. foreign investment in domestic securities is at very low levels

B. All of the above

C. the country is running a net capital account surplus

D. the country is a net lender to the rest of the world
759. The Vicious circle theory indicates that ?
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A. poverty perpetuates itself in mutually reinforcing circles on supply and demand sides

B. as countries grow richer they save less

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

D. market size is large in LDCs

760. A nation will a current account deficit will be ?
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A. experiencing a surplus in exports of goods an services

B. reducing its indebtedness to other nations

C. lending more money to other nations

D. going further into debt with other nations
761. The level of the equilibrium exchange rate offsets international differences in ?
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A. opportunity cost

B. comparative advantage

C. absolute advantage

D. relative costs

762. The real income of domestic producers and consumers can be increased by ?
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A. International trade but not technological progress

B. Technological progress, but not international trade

C. Neither technological progress nor international trade

D. Technological Progress and international trade
763. A reduced share of the world export market for the United States would be attributed to?
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A. High levels of investment by American corporations

B. High incomes of American households

C. Decreased productivity in U.S manufacturing

D. Relatively low interest rates in the United States

764. Longevity is proxy for ________ in the Human Development Index?
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A. health and nutrition

B. living standard

C. Purchasing Power Parity

D. infant mortality

765. All of the following represent obstacles to LDC development except ?
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A. resource scarcity

B. low population

C. low levels of investment

D. poor human capital

E. poor infrastructure

766. Imitating labor standards from rich countries in LDCs may increase ?
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A. human development

B. poverty

C. employment

D. equality

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

C. In the 19901s LDCs relied increasingly on aid from DCs

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

768. The U.S balance of payments is constructed by ?
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A. the U.S Department of labor

B. the council of Economic Advisers to the President

C. the U.S Department of Agriculture

D. the U.S Department of commerce
769. 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 $900, $900-$9000 and more than $9000

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

C. less than $100, $100-$1000 and more than $1000

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

770. Output fell sharply in the transition economies because ?
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A. there was little corporate control

B. vital infrastructure was missing

C. All of the above

D. banks were unable to function

771. A linear consumption function with a positive slope less than one means that if income increases consumption will ?
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A. not change

B. fluctuate

C. fall

D. increase
772. The Physical Quality of Life Index (PQLI) combines three indicators They are ?
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A. crime rate clean environment and quality of housing

B. health education and environment

C. infant mortality life expectancy and adult literacy rate

D. air pollution rate, Water pollution rate and sanitation

773. When a country has a trade deficit it ?
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A. purchases more goods from the rest of the world than it sells

B. sells more goods to the rest of the world than it purchases

C. purchases more stocks and bonds from the rest of the world than it sells

D. sells more stocks and bonds to the rest of the world than it purchases

774. The three measure of welfare indicators above comprise the ?
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A. Physical Quality of Life Index

B. Human Development Index

C. Purchasing Power Parity

D. The Laspeyres index

775. A feasible effect of international trade is that a (an) ?
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A. Monopoly in the home market becomes an oligopoly in the world market

B. Purely competitive firm in the home market becomes an oligopolist

C. Oligopoly in the home market becomes a monopoly in the world market

D. purely competitive firm in the home market becomes a monopolist

776. The misery index Which some commentators suggest measures the health of the economy, is ?
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A. The sum of the natural rate of unemployment and the actual rate of unemployment

B. The sum of the unemployment rate and the inflation rate

C. The sum of the growth rate of output and the inflation rate

D. The sum of the inflation rate and the central banks refinancing rate

777. Equilibrium in the circular flow of income occurs when ?
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A. There is a Bank Holiday

B. None of these

C. Injections withdrawals

D. Injections = withdrawals
778. Historically countries at early stages of rapid economic development have tender to experience ?
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A. trade deficits and an excess of domestic savings over investment

B. trade deficit and an excess of investment over domestic saving

C. trade surpluses and an excess of domestic saving over investment

D. trade surplus and an excess of investment over domestic saving

779. For the United States automobiles are ?
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A. Neither imported not exported

B. Exported and imported

C. Exported, but not imported

D. Imported, but not exported

780. The Ultimate effect of the invisible hand of Adam Smith is that in a competitive economy everyone ?
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A. will increase their profits in a free market

B. should act to promote the public interest

C. should act to maximize economic growth

D. benefits if each acts in his/her own interest
781. The differences between a countrys merchandise exports and its merchandise imports is the ?
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A. current account

B. capital account

C. balance of payments

D. balance of trade
782. The difference between a countrys balance of payments and its balance of international indebtedness?
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A. occurs because of foreign exchange fluctuations

B. reflects statistical discrepancies

C. is equal to official reserve transactions

D. reflects the difference between flow and stock concepts
783. For the United states, exports plus imports are about _____ of its gross national product?
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A. 5 percent

B. 25 percent

C. 10 percent

D. 55 percent

784. For the United States, commercial jetliners are ?
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A. Neither exported nor imported

B. Imported, but not exported

C. Imported and exported

D. Exported, but not imported

785. A decrease the Price of foreign oil ?
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A. Shifts the short-run Phillips curve downward and make the unemployment inflation trade-off less favorable

B. Shifts the short run Phillips curve downward and makes the unemployment inflation trade off more favorable

C. Shifts the short run Phillips curve upward and makes the unemployment inflation trade-off more favorable

D. Shifts the short run Phillips curve upward and makes the Unemployment inflation trade off more favorable

786. The formula for the Laspeyres price index is (o is the base year and n is the given year) ?
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A. P = ?Pnqo/?poqo

B. P = ?Poqo/?poqo

C. P = ?Poqn/?poqo

D. P = ?Poqo/?pnqn

787. The formula to calculate Passche price index is (o is the base year and n is the given year) ?
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A. P = ?Pnqo/?poqo

B. P = ?Pnqn/?poqn

C. P = ?Pnqn/?poqo

D. P = ?Poqo/?pnqn

788. When investment is assumed to autonomous the slope of the AD schedule is determined by the ?
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A. disposable incomes

B. marginal propensity to invest

C. average propensity to consume

D. marginal propensity to consume
789. The role of _______ is to direct one nations savings into investments of another nation?
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A. services flows

B. capital flows

C. current account flows

D. merchandise trade flows

790. Government payments made to domestic firms in order to encourage exports are called ?
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A. subsidies

B. Side payments

C. export quotas

D. Tariffs

791. If a country can produce 10 of product A or 4 of product B the opportunity cost of 1B is ?
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A. 10A

B. 1B

C. 0.4A

D. 2.5A
792. Economic transition involves high inflation because _____ and ______?
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A. Prices surge from an artificially low level to their equilibrium level the inflation tax is required a source of government revenue

B. high monetary growth devaluation

C. high budget deficits devaluation

D. high monetary growth high wages

793. 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. 130

B. 6500

C. 650

D. 0.0065

794. Free traders maintain that an open economy is advantageous is that it provides all of the following except ?
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A. The utilization of the most efficient production methods

B. A wider selection of products for consumers

C. Relatively high wages levels for all domestic workers

D. Increased competition for world producers

795. When we refer to the hidden economy we mean unrecorded income owing to ?
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A. tax evasion

B. smuggling

C. poor statistics

D. the lags between statistical collection and publication

796. A countrys transactions with the rest of the world are recorded in the ?
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A. balance of international indebtedness

B. balance of payments

C. income statements

D. balance of financial transactions

797. International trade forces domestic firms to become more competitive in terms of ?
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A. Product design and quality

B. The introduction of new products

C. All of the above

D. Product price

798. Referring to the above table, the U.S balance of international indebtedness suggests that the U.S is a net ?
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A. creditor

B. debtor

C. exporter

D. spender

799. IF GNP per capita at constant prices for Liechtenstein a microstate of 29,000 people located on the Rhine River between Switzerland and Austri is US$555 and US$560 in 2011 and 2012 respectively, the real economic growth from 2011 to 2012 is ?
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A. 0.99%

B. 0.901%

C. 5%

D. 0.09%

800. What is Barans explanation for underdevelopment in Asia, Africa, and Latin America ?
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A. monopolistic business from abroad

B. reactionary ruling coalitions

C. weak domestic middle class

D. All of the above