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
8151. John Stuart Mill was the founder of the ?
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A. Theory of mercantilism

B. Theory of reciprocal demand

C. Theory of comarative advantage

D. Theory of absolute advantage

8152. The opportunity cost of one DVD in Japan is ?
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A. Four tons of steel

B. One ton of steel

C. Three tons of steel

D. Two tons of steel

8153. Country A has an absolute advantage in ?
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A. Beer

B. Wine

C. Both products

D. neither products
8154. Dynamic gains from trade could result from ?
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A. The stimulus of additional investment spending as market open

B. Economies of large scale production as markets open

C. Additional competition made possible by the opening of markets

D. All of the above
8155. With International trade, what would be the maximum amount of steel that South Korea would be willing to export to Japan in exchange for each DVD ?
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A. One ton of steel

B. One-half ton of steel

C. Two and one-half tons of steel

D. Two tons of steel
8156. The gains from international trade are closely related to ?
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A. The labor theory of value

B. How much the autarky price differs from international terms of trade change

C. The fact that a country must lose from trade

D. All of the above

8157. In autarky, the relative price of wine, in terms of beer, in country A is ?
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A. 1W = 3B

B. 1W = 1/3B

C. 1W = 1B

D. 1W = 2B

8158. Given free trade, small nations tend to benefit the most from trade since they ?
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A. Are more productive than their large trading partners

B. Are less productive than their large trading partners

C. Have demand preferences and income levels lower than their large trading partners

D. Realize terms of trade lying near the MRTs of their large trading partners
8159. Under free trade, Canada would not realize any gains from trade with Sweden if Canada ?
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A. Specializes partially in the production of its exports goods

B. Specializes completely in the production of its export good

C. Trades at Canadas marginal rate of transformation

D. Trade at Swedens marginal rate of transformation

8160. In autarky, when a community maximizes its standard of living its production point is ?
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A. on the production possibility frontier

B. below the production possibility frontier

C. above the production possibility frontier

D. cant tell without more information

8161. Mercantilism ?
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A. Is the philosophy of free international trade?

B. Was a system of export promotion and barriers to imports practiced by governments?

C. Was praised by Adam Smith in the Wealth of Nations

D. Both (a) and (c)

8162. In autarky the relative price of wine, in terms of beer, in Country B is ?
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A. 1W = 6B

B. 1W = 5B

C. 1W = 3B

D. 1W = 4 1/2B
8163. If the countries were to trade along the lines of absolute advantage ?
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A. None of the above

B. Neither country would want to trade

C. B would import Y from A

D. A would export X to B

8164. If a country has a bowed out (concave to the origin) production possibility frontier then production is said to be subject to ?
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A. constant opportunity costs

B. increasing opportunity costs

C. first increasing and then decreasing opportunity costs

D. decreasing opportunity costs

8165. G. MecDougall showed in his tests that ?
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A. None of the above

B. relatively higher U.S labor productivity was associated with relatively higher U.K export ratios

C. Labor productivity ratios and export ratios were not associated with each other

D. relatively high U.K labor productivity was associated with relatively higher U.K export ratios
8166. According to the principle of comparative advantage ?
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A. South Korea should export steel and DVDs

B. South Korea should export steel

C. Japan should export steel

D. Japan should export steel and DVDs

8167. Country A has the comparative advantage in ?
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A. Wine

B. Beer

C. Both wine and beer

D. Neither wine nor beer

8168. The opportunity cost of one DVD in South Korea is ?
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A. One ton of steel

B. One and one-half tons of steel

C. Two tons of steel

D. One-half ton of steel

8169. The classical trade theories of Smith and Ricardo predict that ?
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A. Considerable trade will occur between countries with different levels of technology

B. Small countries could obtain of the gains from trade when trading with large countries

C. All of the above

D. Countries will completely specialize in the production of export goods

8170. If the relative Price (MRT) of T were to increase, then the price line would ?
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A. Become flatter

B. shift in a parallel fashion

C. Shift out in a parallel fashion

D. become steeper

8171. G. MacDougalls empirical results can be interpreted as ?
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A. evidence against the classical model

B. Support for the Ricardian modal

C. Support for the Heckscher-Ohlin model

D. evidence against the Heckscher-Ohlin model

8172. Country A 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

8173. Absolute advantage is determined by ?
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A. actual differences in labor production between countries

B. relative differences in labor productivity between countries

C. Both (a) and (b)

D. Neither (a) nor (b)

8174. Which countries terms of trade improved between 1990 and 2000 ?
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A. Mexico and Sweden

B. Mexico and Denmark

C. Sweden and Denmark

D. Sweden and Spain

8175. If the international terms of trade settle at a level that is between each countrys opportunity cost ?
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A. There is no basis for gainful trade for either country

B. Both countries gain from trade

C. Only one country gains from trade

D. One country gain and the other country loses from trade

8176. In autarky equilibrium ?
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A. All of the above

B. Exports equal imports

C. there is no trade

D. Production equals consumption

8177. If countries were to trade along the lines of comparative advantage ?
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A. A would export X to B

B. None of the above

C. A would export Y to B

D. Neither country would want to trade

8178. If a country has a liner (downward sloping) production possibilities frontier, then production is said to be subjected to ?
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A. increasing opportunity costs

B. decreasing opportunity costs

C. first increasing and then decreasing opportunity costs

D. constant opportunity costs
8179. In aukarky, when a community maximizes its standard of living, its production and consumption point is ?
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A. cant tell without more information

B. below the production possibility frontier

C. On the production possibility frontier

D. above the production possibility frontier

8180. Comparative advantage is determined by ?
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A. actual differences in labor productivity between countries

B. relative differences in labor productivity between countries

C. Both (a) and (b)

D. Neither (a) nor (b)

8181. The Relative price (MRT)of S in terms of T i ?
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A. 1/2

B. 2

C. 1000

D. 0

8182. According to the Classical theory of international trade ?
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A. Only countries with high wages will import

B. Only countries with low wages will export

C. All of the above are false

D. Countries with high wages will have higher prices

8183. Which of the following countries are not newly industrialized countries (NICs) ?
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A. North Korea

B. Hong kong

C. Taiwan

D. Singapore

8184. Which of the following are not third-world regions ?
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A. Asia

B. Australia

C. Africa

D. Latin America

8185. Which of the following characteristics are most likely found in developing countries ?
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A. All of the above

B. very traditional methods of agricultural production

C. large number of people living in poverty

D. high population growth rates

8186. In which of the following countries would you expect material lifestyles to be most like those in the United States ?
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A. Mali

B. Nigeria

C. India

D. Japan
8187. Which of the following could not be considered a major economic system ?
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A. None of the above

B. communism

C. socialism

D. physical quality of life index

E. capitalism

8188. Which country is not a transitional economy ?
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A. Mexico

B. Hungary

C. Russia

D. china

8189. The poorest region of the World is ?
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A. Sub Saharan Africa

B. Latin America

C. the Middle East

D. Asia

8190. Development economics focuses primarily on the poorest ______ of the worlds?
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A. population

B. two thirds

C. one third

D. 5 percent

E. 28 percent

8191. Of the Worlds population what portion lives in developing countries ?
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A. nearly 1 billion people

B. approximately 35%

C. approximately 80%

D. nearly 10 billion people

8192. Which of the following could be considered critical s in development economics ?
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A. All of the above are correct

B. How do the poorest 2/3 of the world live?

C. what factors affect labor skills in the third world?

D. What are the major theories of economic development

8193. If the price of a good is above the equilibrium price ?
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A. there is a surplus and the price will fall

B. there is a surplus and the price will rise

C. there is a shortage and the price will rise

D. The quantity demanded is equal to the quantity supplied and the price remains unchanged

E. there is a shortage and the price will fall

8194. If the price of good is equal to the equilibrium price ?
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A. there is a surplus and the price will fall

B. there is a shortage and the price will rise

C. there is surplus and the price will rise

D. the quantity demanded is equal to the quantity supplied supplied and the price remains unchanged

E. there is a shortage and the price will fall

8195. A shift is demand will have more effect on price than quantity if ?
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A. The price elasticity of supply is price elastic

B. The price elasticity of supply is infinity

C. The price elasticity of supply is perfectly elastic

D. The price elasticity of supply is price inelastic

8196. The effect of a tax to offset a negative externality will be to ____ price and ______ quantity?
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A. reduce, increase

B. increase, reduce

C. increase, increase

D. reduce , reduce

8197. Externalities arise because there is a divergence between ________ and _________?
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A. social costs, social benefit

B. private costs, private benefits

C. insiders, outsiders

D. private costs, social costs or benefits
8198. A decrease in demand for a products should ?
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A. Decrease equilibrium price and quantity

B. Decrease equilibrium price and increase quantity

C. Increase equilibrium price and decrease quantity

D. increase equilibrium price and quantity

8199. A perfectly competitive market has ?
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A. many buyers and sellers.

B. only one seller.

C. firms that set their own prices

D. at least a few sellers.

8200. Economists use the term Black Markets for situations where ?
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A. goods are sold at prices above legal or official price.

B. transactions are not recorded in the GDP figures.

C. illegal substances are sold

D. buyers and/or sellers are not paying taxes as they should