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
7951. According to Webers thesis ?
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A. capitalism was most advanced in Protestant countries

B. Protestants disapproved of accumulating wealth

C. Protestants failed to restrict extravagance and conspicuous consumption

D. Roman Catholicism expressed its asceticism in a secular vocation

7952. Joseph Schumpeter is the exceptional economist who links the entrepreneur to ?
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A. innovation

B. land and labor

C. oligopolistic capitalism

D. resource management

7953. Which of the following was a socialist country ?
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A. India

B. #NAME?

C. Holland

D. Soviet Union

7954. Which of the following is an example of a Schumpeterian innovation ?
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A. The invention of the Stanley steamer

B. The production and marketing of the Model T Ford in the 19-teens

C. An existing internet provider provides competition to two other providers in Dayton Ohlio

D. An American buying a stock in the Philippines stock market

7955. The Protestant Ethic and the Spirit of Capitalism was written by ?
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A. Max Weber

B. Joseph Schumpeter

C. Adam Smith

D. William Baumol

7956. Which of the following is not an assumption of Schumpeters stationary state ?
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A. An economy below full employment

B. No entrepreneurial function is required

C. No savings or technical change

D. Perfect competition

7957. The entrepreneur can be viewed as the ?
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A. gap filler and input completer

B. decision maker under uncertainty

C. coordinator of other production resources

D. #NAME?

7958. Technical advance involves ?
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A. patent management resource gains mature innovation and speculative gains

B. innovation investment credit creation and economies growth

C. the development of pure science, invention innovation financing the innovation and the innovations acceptance

D. introducing new products modifying production functions creating credit and making profits

7959. Capitalism is an economies system ?
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A. based on government intervention in the means of production

B. that dominated developing economies in the 19 Century

C. that originated in the United States in the 19th Century

D. Where private owners of capital make decisions based on profit
7960. Which of the following is TRUE about gender and business world ?
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A. There are more women than men in U.S business because of the aspirations of U.S girls

B. LDC businesswomen have a better chance than men of getting credit from bankers and suppliers

C. Businesswomen in India are viewed as naturally stronger, less emotional more socially adept and more rational than businessmen

D. There are relatively few women in U.S business partly because of female socialization
7961. Monopoly advantage is usually the result of greater opportunities such as ?
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A. access to more economic information than competitors

B. #NAME?

C. larger firm size

D. superior access to training and education

7962. The most wave of globalization which began in the 1980s has emphasized the outsourcing of ?
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A. natural resource extraction and mining jobs

B. services and white-collar jobs

C. manufacturing and blue-collar jobs

D. agriculture and farming jobs

7963. Major trading partners of the United States including all of the following countries except ?
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A. Canada

B. Mexico

C. North Korea

D. China

7964. For the United States automobiles are ?
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A. Imported, but not exported

B. Neither imported not exported

C. Exported, but not imported

D. Exported and imported
7965. A tariff causes domestic firms to ________ and consumers to?
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A. underproduce, under consume

B. underproduce, overconsume

C. overproduce, under consume

D. Overproduce, overconsume

7966. If there is a balance of payments deficit then in a floating exchange rate system ?
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A. Aggregate demand is increasing

B. The injections from trade are greater then the withdrawals

C. The external value of the currency would tend to rise

D. The external value of the currency would tend to fall
7967. International trade is based on the idea that ?
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A. imports should exceed exports

B. Exports should exceed imports

C. Resources are more mobile internationally than are goods

D. Resources are less mobile internationally than are goods
7968. Arguments for free trade are sometimes disregarded by politicians because ?
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A. Maximizing consumer welfare may not be a chief priority

B. Maximizing domestic efficiency is not considered imports

C. Economists tend to favor high protected domestic markets

D. There exist sound economic reasons for keeping ones economy isolated from other economies

7969. Recent pressures for protectionism in the United States have been motivated by all of the following except ?
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A. High profit levels for American corporations

B. U.S firms shipping component production overseas

C. Sluggish rates of productivity growth in the United States

D. High unemployment rates among America workers

7970. 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. Heckscher Ohlin theorem

B. Friedman Samuelson theorem

C. Lucas-Laffer theorem

D. Ricardo Malthus theorem

7971. The term tariff, as used in international trade refers to ?
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A. The price of goods when they leave the producing country

B. a government payment to encourage exports

C. a limit on the quantity of a good that can be imported into a country

D. a tax on imports
7972. When countries from large trading blocs like the EU, the size of the bloc has the effect of improving them ?
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A. terms of trade

B. balance of trade

C. balance of payments

D. comparative advantage

7973. The movement to free international trade is most likely to generate short-term unemployment in which industries ?
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A. Imports competing industries

B. Industries that sell to only foreign buyers

C. Industries that sell to domestic and foreign buyers

D. Industries in which there are neither imports nor exports

7974. The largest amount of trade with the United States in recent years has been conducted by ?
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A. Mexico

B. Germany

C. Canada

D. United Kingdom

7975. Free traders maintain that an open economy is advantageous is that it provides all of the following except ?
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A. A wider selection of products for consumers

B. Increased competition for world producers

C. Relatively high wages levels for all domestic workers

D. The utilization of the most efficient production methods

7976. David Ricardos theory in favor of free trade uses the ideal of ?
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A. multilateral advantage

B. mutual advantage

C. absolute advantage

D. comparative advantage
7977. International trade in goods and services is sometimes used as a substitute for all of the following except ?
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A. Domestic production of different goods and services

B. International movements of technology

C. International movements of capital

D. International movements of labor

7978. If a group of countries abolish trade barriers between them and set same tariffs on goods coming in from other countries they are a ?
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A. customs union

B. federation

C. common market

D. free trade area

7979. A significant portion of actual world trade patterns results from ?
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A. the different tastes and preferences of people in different countries

B. different factor endowment between countries

C. different sizes of the countries

D. The industrial policies of governments

7980. Government payments made to domestic firms in order to encourage exports are called ?
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A. Side payments

B. Tariffs

C. export quotas

D. subsidies
7981. Technological improvements are similar to international trade since they both ?
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A. Reduce unemployment for all domestic workers

B. Ensure that industries can operate at less than full capacity

C. Provide benefits for all producers and consumers

D. Increase the nations aggregate income
7982. Free trade is based on the principle of ?
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A. Comparative scale

B. Production possibility advantage

C. Economies of advantage

D. Comparative advantage
7983. LDCs often have a comparative advantage in the production of ?
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A. financial services

B. primary products

C. intermediate products

D. manufactured products

7984. If the Uk placed a limit on the amount of steel that could be imported into the UK in a particular period this would be an example of ?
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A. a quota

B. a tariff

C. an export subsidy

D. dumping

7985. The main cause of different relative costs between countries are ?
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A. relative factor competition

B. relative factor mobility

C. relative factor substitution

D. relative factor endowments
7986. The real income of domestic producers and consumers can be increased by ?
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A. Technological progress, but not international trade

B. Neither technological progress nor international trade

C. Technological Progress and international trade

D. International trade but not technological progress

7987. Which of the following is not an argument for protectionism ?
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A. To improve the balance of payments

B. To protect infant industries

C. To Protect strategic industries

D. To increase the level of imports
7988. A main advantage of specialization results from ?
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A. Economies of large-scale production

B. The specializing country behaving as a monopoly

C. High wages paid to foreign workers

D. Smaller production runs resulting in lower unit costs

7989. Term of trade for a country are the ratio of _______________ to _____________?
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A. export prices; import prices

B. its currency; other currencies

C. its opportunity costs; world opportunity costs

D. Value of exports; value of imports

7990. For the United States, commercial jetliners are ?
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A. Exported, but not imported

B. Imported, but not exported

C. Imported and exported

D. Neither exported nor imported

7991. One of the main advantages of trade economists suggest is ?
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A. lower tariffs

B. development of tourism

C. technological change

D. competitions with foreign suppliers
7992. To prevent the external value of the currency from falling the government might ?
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A. Sell its own currency

B. Reduce interest rates

C. Buy its own currency with foreign reserves

D. Increase its own spending

7993. 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

7994. Tariffs are used to protect infant industries these industries are those which ?
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A. use a new technology

B. are not yet large enough to achieve economies of scale

C. are competing with well-established overseas firms

D. employ many young or untrained workers

7995. 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 volatility of primary products real prices

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

C. The upward 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
7996. If a country has a burden of debt it cannot sustain it can ?
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A. any of the above

B. default on the loan

C. reschedule debt

D. get a loan from an international organization

7997. What is not a feature of the EU as a single market ?
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A. Common security arrangements

B. Elimination of border controls

C. Each country can retain its own technical standards

D. No import taxes on goods bought in another members country

7998. All of the following represent obstacles to LDC development except ?
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A. low levels of investment

B. poor infrastructure

C. poor human capital

D. resource scarcity

E. low population
7999. The imposition of a tariff causes consumption to _____ and imports to _________?
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A. rise, rise

B. fall, fall

C. rise, fall

D. fall, rise

8000. The marginal propensity of consume is equal to ?
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A. Change in consumption / change in income

B. Total spending / total consumption

C. Change in consumption / change in savings

D. Total consumption / total income