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
8101. The home country government can confiscate the revenue effect of an import quota if ?
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A. quota licenses are given to foreign exporting companies

B. quota licenses are auctioned to the highest bidding importing company

C. if quota licenses are given to domestic consumers of the good

D. Both A and C

8102. In certain industries Japanese employers hesitate to lay off workers Therefore they sometimes have excess supplies of goods that they cannot sell on the home market without lowering prices. To hold down losses they sell goods in overseas markets at prices well beneath those in japan This practice is best referred to as ?
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A. Orderly marketing

B. trigger pricing

C. domestic content pricing

D. dumping
8103. If imports licenses are auctioned off to domestic importers in competitive market their scarcity value (revenue effect) accrues to ?
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A. foreign corporations

B. foreign workers

C. The domestic government

D. domestic corporations

8104. ________ occurs when a firm disposes on foreign markets a temporary increases in inventories caused by unforeseen changes in supply and demand conditions in the home economy?
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A. predatory dumping

B. persistent dumping

C. sporadic dumping

D. foreign dumping

8105. A production subsidy that is granted to a producer of an import-competing good ?
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A. does not require government taxes to finance it

B. yields the same deadweight welfare loss as an import tariff or import quota

C. has only a protective effect deadweight loss

D. has only a consumption effect deadweight loss

8106. Export subsidies levied by foreign governments on products in which the Pakistan the comparative disadvantage ?
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A. lead to increases in Pakistani consumer surplus

B. encourage Pakistani workers to demand higher wages

C. lower the welfare of all Pakistanis

D. encourage Pakistans production of competing goods

8107. Suppose that the domestic government allows a specific number of goods to be imported each year, but it does not specify from where the product is shipped or who is permitted to import Such a trade barrier is known as ?
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A. a global quota

B. an import tariffs

C. a selective quota

D. a tariff rate quota

8108. Similar to import tariffs import quotas tend to result in ?
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A. increased government revenue

B. increased consumer surplus

C. higher prices and reduced imports

D. decrease producer surplus

8109. A(n) ________ is n example of a quota where foreigners hold quota licenses ?
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A. export quota

B. tariff quota

C. embargo

D. auction quota

8110. Nontariff trade barriers could include all of the following except ?
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A. antidumping/countervailing duties applied to imports

B. domestic content laws

C. government procurement policies

D. health, safety, and environmental standards

8111. Under a tariff- rate quota ?
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A. The within-quota tariff rate exceeds the over-quota tariff rate

B. The within-quota tariff rate plus over-quota tariff rate equal 100 percent

C. The within-quota tariff rate equals the over-quota tariff rate

D. the over-quota tariff rate exceeds the with-quota tariff rate
8112. In the absence of trade, Canadas equilibrium price and quantity equal ?
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A. $55 and 20 calculators

B. $65 and 40 calculators

C. $45 and 25 calculators

D. $30 and 40 calculators

8113. In a tariff and import quota lead to equivalent increase in the domestic price of steel, then ?
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A. The quota results in efficiency reductions but the tariff does not

B. The tariff results in efficiency reductions but the quota does not

C. They have identical impact on how much is produced and consumed

D. They have identical impact on how income is distributed

8114. By practicing price discrimination, the firm would realize profits totaling ?
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A. $420,000

B. $660,000

C. $540,000

D. $160,000

8115. To maintain that South koreans are dumping their DVDs in the United States is to maintain that ?
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A. The cost of manufacturing DVDs in Korea is lower in Korea than in the U.S since wages are lower in Korea

B. Koreans are selling DVDs in the U.S below their production cost

C. Koreans are selling DVDs is the U.s above their productions cost

D. The cost of manufacturing DVDs in Korea is higher in Korea than in the U.S since wages are higher in Korea

8116. In the absence of traded, Norways equilibrium price and quantity equal ?
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A. $3,500 and 2,000 computers

B. $2,500 and 2,000 computers

C. $1,500 and 2,800 computers

D. $2,000 and 1,600 computers

8117. A attempts to limit outsourcing of jobs to foreigners by requiring that a minimum percentage of a products value must be produced domestically if that good is to be sold in the domestic market ?
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A. voluntary restraint agreement

B. domestic subsidy

C. tariff-rate quota

D. domestic content requirement
8118. ___________ are quotas that lead to a complete abolishment of trade?
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A. orderly marketing agreements

B. voluntary export restraints

C. embargoes

D. nontariff barriers

8119. If the home country government grants a subsidy on a domestically produced good domestic producers tend to ?
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A. Capture the entire subsidy in the form of higher profits

B. consider the subsidy as a increase in production cost

C. Increase their level of production

D. reduce wages paid to domestic workers

8120. If a tariff and import quota lead to equivalent increases in the domestic price of steel, then ?
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A. They have different impacts on how much is produced and consumed

B. the quota results in efficiency reductions but the tariff does not

C. They have different impacts on how income is distributed

D. The tariff results in efficiency reductions but the quota does not

8121. From the perspective of the American public as a whole, export subsidies levied by overseas governments on goods sold to the United States ?
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A. are equivalent to an export quota

B. hurt more then they help

C. help more than they hurt

D. are equivalent to an import quota

8122. international dumping may involve ?
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A. selling goods to foreigners at a price below that charged domestic consumers

B. selling goods to foreigners at a price below the cost of production

C. antidumping duties being levied on the imported, dumped goods

D. All of the above
8123. According to the cost-based definition of dumping, dumping occurs when a firm sells a product abroad at a price that is less than ?
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A. average total cost

B. average variable cost

C. marginal cost

D. average fixed cost

8124. For year the U.S government levied quotas on inexpensive oil imported from the Middle East The quotas led to cost increases for U.S consumers totaling $3 billion for oil products. An apparent justification of this policy was that ?
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A. U.S oil companies and workers deserved higher incomes

B. one should not be too dependent on foreign suppliers of crucial resources

C. The U.S government needed the quota revenue to balance its budget

D. U.S oil was of superior quality and merited higher prices

8125. ________ are profits that accrue to whomever has the right to import the good that is restricted by the quota?
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A. None of the above

B. quota prices

C. quota license

D. quota rents
8126. To aid its calculator producers, suppose that the government provides them a subsidy of $10 for each calculator produced The amount of imports now equals _____ and the deadweight loss of the subsidy to the Canadian economy equals _________?
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A. 20 calculator, $50

B. 25 calculator, $100

C. 25 calculator, $50

D. 20 calculator, $100

8127. Which company in the United States would likely be most concerned about Brazils dumping of steel in the U.S market ?
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A. Sneva Construction Co. The builder of skyscrapers

B. Tennessee Mining Co. an iron-ore mining company

C. General Motors, the manufacturer of automobiles

D. Caterpillar Corp the producer of earth moving equipment

8128. With free trade, suppose that the rest of the world can supply calculators to Canada at a price of $30. Canadas imports would now equal _____ and its consumer surplus would ____ relative to what occurred in the absence of trade. What is the change in consumer surplus? Refer to the figure that you have plotted ?
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A. 30 calculators increase

B. 25 calculators decrease

C. 25 calculators increase

D. 20 calculators increase

8129. Governments around the world tend to auction quota licenses ?
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A. always

B. often

C. never

D. seldom
8130. What type of trade barrier was used to protect U.S auto firms from foreign competition during 1981 1984 ?
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A. export quotas imposed by the Japanese government

B. export tariffs imposed by the Japaneses government

C. domestic subsidies granted by the U.S government

D. import quotas imposed by the U.S government

8131. Quotas are government-imposed limits on the _________ of goods trade between countries?
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A. quantity

B. costs

C. prices

D. revenue

8132. A _______ allows a specified number of goods to be imported each year, and it not specifies from where the product is shipped and who is permitted to import ?
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A. global quota

B. export quota

C. import quota

D. selective quota
8133. During periods of growing domestic demand, an import quota ?
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A. is less restrictive on a countrys imports than a tariff

B. Is more restrictive on a countrys imports than a tariff

C. has the same restrictive effect on a countrys imports as a tariff

D. will always generate increased tax revenue for the government

8134. The firm would maximize profit by selling computers in the United States at a price of __________ and _________ computers in Japan at a price of __________?
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A. 300, $1,800, 400 $800

B. 300, $1,800, 800 $800

C. 200, $2,000, 100 $1,000

D. 500, $1,400, 400 $800
8135. A tariff-rate quota is essentially a ?
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A. two tier quota applied to a countys exports

B. three tier quota applied to a countrys exports

C. two tier tariff applied to a countrys imports

D. three-tier tariff applied to a countrys imports

8136. Throughout the world, governments tend to auction quota licenses to their highest bidder ?
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A. often

B. seldom

C. always

D. never

8137. Country B has an absolute advantage in ?
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A. Product X

B. Product Y

C. Neither X nor Y

D. Both X and Y

8138. G. MacDougal compared export ratios and labor productivity ratios for the United States and the United Kingdom in order to test the:
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A. Heckscher Ohl in theory of comparative advantage

B. Linder theory of overlapping demand all of the above

C. None of these

D. Ricardian theory of comparative
8139. The relative price (MRT) of T in terms of S is ?
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A. 2

B. 1000

C. 500

D. 2-Jan

8140. In autarky, the relative price of X, in terms of Y in A would be ?
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A. 3/4 Y

B. 1 Y

C. 4/3 Y

D. 1/2 Y

8141. In the classical model of Ricardo, the direction of trade is determined by ?
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A. Absolute advantage

B. Physical advantage

C. Comparative advantage

D. Which way the wind blows

8142. If the relative price (MRT) of S were to increase, then the price line would ?
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A. shift out in a parallel fashion

B. Become steeper

C. Become flatter

D. shift in a parallel fashion

8143. According to the Principle of absolute advantage Japan should ?
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A. Export DVDs

B. Export steel

C. Exports steel and DVDs

D. There is no basis for gainful specialization and trade
8144. The earliest statement of the principle of comparative advantage is associated with ?
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A. Adam Smith

B. Berti IOhlin

C. David Ricardo

D. Eli Heckscher

8145. If the autarky price of S were lower in country A than in country B then if trade were allowed ?
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A. neither country would want to trade

B. None of the above

C. A would likely export S to B

D. A would likely import S from B

8146. The terms of trade is given by the prices ?
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A. Of primary products as opposed to manufactured products

B. Paid for all goods exported by the home country

C. Received for all goods exported by the home country

D. Received for exports and paid for imports
8147. With international trade, what would be the maximum number of DVDs that Japan would be willing to export to South Korea in exchange for each ton of steel ?
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A. Two DVDs

B. Four DVDs

C. One DVD

D. Three DVDs

8148. Country B has the comparative advantage in ?
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A. Wine

B. Beer

C. Both wine and beer

D. Neither wine nor beer

8149. International trade is based on the nation that ?
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A. Different currencies are an obstacle to international trade

B. Goods are more mobile internationally than are resources

C. A countrys exports should always exceed its imports

D. Resources are more mobile internationally that are goods

8150. If Hong Kong and Taiwan have identical production possibilities curves that are subject to increasing opportunity costs ?
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A. Trade would depend on the use of different currencies

B. Trade would depend on difference in demand conditions

C. There would be no basis for gainful trade

D. Trade would depend on economies of large-scale production