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
8251. An increase in income will ?
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A. Lead to a movement along the demand curve

B. Lead to an extension of demand

C. Shift the supply curve

D. Shift the demand curve
8252. Suppose there is an increase in both the supply and demand for personal computers. In the market for personal computers, we would expect?
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A. the equilibrium quantity to rise and the equilibrium price to remain constant

B. the change in the equilibrium quantity to be ambiguous and the equilibrium price to rise

C. the equilibrium quantity to rise and the change in the equilibrium price to be ambiguous.

D. the equilibrium quantity to rise and the equilibrium price to fall

E. the equilibrium quantity to rise and the equilibrium price to rise

8253. If the market price is below the equilibrium price ?
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A. quantity demanded will be greater than quantity supplied

B. quantity demanded will equal quantity supplied .

C. quantity demanded will be less than quantity supplied

D. demand will be less than supply.

8254. Taxes creates a wedge between the sales price and purchase price that prevents the price system equating ____ and ______?
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A. demand, supply

B. marginal cost, average cost

C. marginal cost, marginal revenue

D. marginal costs, marginal benefits
8255. A monopolistic market has ?
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A. firms that are price takers

B. many buyers and sellers

C. only one seller

D. none of these answers

8256. If an increase in consumer incomes leads to a decrease in the demand for camping equipment, then camping equipment is ?
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A. an inferior good

B. a substitute good

C. a normal good

D. none of these answers

8257. If my neighbour burns garden waste causing my house to fill with smoke this is an example of ?
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A. a production externality

B. a consumption externality

C. transaction costs

D. a second-best solution

8258. A public good ?
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A. Gas external costs

B. Is free

C. Has the properties of being non-excludable and non-diminishable

D. Is provided by the government

8259. The prisoners Dilemma Game demonstrates that ?
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A. monopoly is better than competition

B. people will always cheat

C. players are better off if they co-operate

D. players are better of to act independently

8260. If two firms doing the same thing in the same industry join together, this is known as a ?
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A. vertical merger

B. horizontal merger

C. hostile takeover

D. conglomerate merger

8261. If an increase in the price of blue jeans leads to an increase in the demand for tennis shoes, then blue jeans and tennis shoes are ?
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A. Complements

B. normal goods

C. none of these answers

D. inferior goods

E. Substitutes
8262. If the price in a market is fixed by the government below equilibrium ?
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A. There is excess supply

B. There is excess demand

C. There is equilibrium

D. There is excess equilibrium

8263. In Nash equilibrium each player chooses the best strategy ?
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A. that is a credible threat

B. Assuming other players move first

C. dominated by the other players

D. given the strategies of other players
8264. An increase (rightward shift) in the demand for a good will tend to cause ?
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A. an increase in the equilibrium price and quantity

B. a decrease in the equilibrium quantity.

C. an increase in the equilibrium price and a decrease in the equilibrium quantity

D. a decrease in the equilibrium price and quantity.

E. none of these answers

8265. In a free market system rationing occurs when there are increases in ?
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A. quantity

B. supply

C. price

D. demand

8266. A shift in supply will have more effect on price than quantity if ?
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A. The price elasticity of supply is 3

B. The price elasticity of supply is infinity

C. The price elasticity of supply is 0.2

D. The price elasticity of supply is 2

8267. When supply increase in an agricultural market farmers earning might fall because ?
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A. Supply is price elastic

B. Demand is price inelastic

C. All output must be sold at a maximum price

D. The government buys up all the excess production

8268. The social costs of monopoly power arises because ?
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A. price is less than marginal cost

B. marginal cost is set equal to marginal revenue

C. marginal consumer benefit is less than marginal revenue

D. there is too little output at too high a cost
8269. If a government were to fix a minimum wage for adult workers, economists would predict ?
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A. fewer young workers would be employed

B. the costs and prices of firms employing cheap labour would increase

C. there would be more unemployment

D. wages in general would fall as employers tried to hold down costs

8270. All of the following shift the supply of watches to the right except ?
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A. an advance in the technology used to manufacture watches

B. a decrease in the wage of workers employed to manufacture watches

C. All of these answers cause an increase in the supply of watches

D. an increase in the price of watches
8271. Moral hazard means that the act of insuring ____ that the desired outcome will occur?
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A. none of the above

B. increases the likelihood

C. reduces the likelihood

D. guarantees

8272. An example of an indirect tax is ?
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A. income tax

B. inheritance tax

C. VAT

D. a tax on profits

8273. If the price was fixed below the equilibrium price there would be ?
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A. Excess demand

B. Excess supply

C. Downward pressure on prices

D. Equilibrium

8274. If the consumption of good by one person does not reduce the quantity available by others and nobody can be easily excluded from consumption, we are referring to a ?
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A. public good

B. Private good

C. abundant good

D. merit good

8275. Merit goods are ?
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A. Not provided in the free market economy

B. Over provided in the free market economy

C. Provided free

D. Under provided in the free market economy
8276. A public good will ?
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A. Be under provided in the free market

B. Has no opportunity cost

C. Not be provided in the free market

D. Be over provided in the free market

8277. When a market is contestable, incumbent firms must __________ to avoid the entry of new competitors?
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A. practice price discrimination

B. behave like competitive firms

C. agree to act together

D. differentiate their products

8278. Economics say that there has to be some from of rationing whenever ?
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A. merit goods are produced

B. inflation occurs

C. there are externalities

D. there is excess demand
8279. Markets sometimes fail to exist because of________?
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A. a and c

B. the free-rider problem

C. externalities

D. a and b
8280. The problem posed by a natural monopoly is that it faces a _____ This means that _______?
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A. decreasing average cost curve, marginal cost lies below average cost

B. decreasing average cost curve marginal cost lies above average cost

C. increasing average cost curve, marginal cost lies above average cost

D. increasing average cost curve, marginal cost lies below average cost

8281. An inferior good is one for which an increase in income causes a(n) ?
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A. increase in demand

B. increase in supply

C. decrease in supply

D. decrease in demand
8282. If demand increase in a market this will usually lead to ?
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A. A higher equilibrium price and lower output

B. A lower equilibrium price and higher output

C. A higher equilibrium price and output

D. A lower equilibrium price and output

8283. A movement along the supply curve may be caused by ?
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A. A change in technology

B. A change in costs

C. A change in the number of producers

D. A shift in demand
8284. Which of the following is not among the most advanced global food chain cluster with headquarters in the US ?
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A. cargil/Monsanto

B. ConAgra

C. Procter & Gamble

D. Novartis/ADM

8285. Which of the following NOT a cause of food insecurity, according to Nic Maunder, a specialist on Ethiopia ?
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A. Aid from developed nations

B. Corruption and mismanagement

C. Poor roads

D. War and bad governance

8286. In food demand growth equation D = ? + a E, a is the income elasticity of demand for food E is the per capita income growth and ? is ?
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A. change in the quantity of food demanded per capita

B. Poverty rates

C. food security index

D. population growth
8287. Which index combines measures of calorie availability (in relation to requirement) the growth of per capita daily energy supply food production food staples self-sufficiency, and variability of food production and consumption ?
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A. food sufficiency index

B. food security index

C. food growth index

D. food self-intake index

8288. Which of the following is not a consequence of growing agricultural commercialization ?
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A. An increase in the number of landless laborers

B. Workers nutrition is reduced

C. Women gain in decision making power

D. An increase in rural poverty

8289. Which of the following colonial policy contribute further to todays agricultural underdevelopment in Africa ?
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A. Colonialism often changed traditional land tenure systems from individual control to communal

B. Research and development concentrated on food production and small farmers and herders.

C. Colonial governments compelled farmers to grow selected crops

D. . Colonialists failed to train African agricultural scientists and managers

8290. Which of the following is a form of urban bais ?
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A. Government may set price floors on food and price ceilings for industrial goods

B. #NAME?

C. Spending more for education training housing, health and transport in urban areas than in rural areas.

D. Tax incentive and subsidies to infant industry

8291. Which of the following is not true about the specialized farm ?
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A. Such a farm is labor intensive

B. Such a farm uses advanced technology and takes advantage of economies of scale.

C. Such a farm is the most advanced

D. Such a farm usually emphasizes

8292. A set of alternative commodity bundles that a person can command in a society using the totality of rights and opportunities that he possesses is known as ?
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A. income distribution

B. entitlement

C. Production possibilities

D. egalitarianism

8293. Most of Latin America has been characterized by ______ large land-grand estates owned by the few and ________ small poor holdings that rarely provide adequate employment for a family ?
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A. feudum, nocere

B. multitudinous latitudinous

C. latifundios, minifundios

D. grameen, repetto

8294. Which scholar argues the following Plantations have no significant advantage over peasants [for] crops for which centralized processing and marketing are not necessary Cocoa and coconuts are typical examples of a lack of large scale economies Peasants can grow and process these crops in small lots with no large capital requirement beyond small indigenous tools and facilities ?
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A. Tim Dyson

B. Raanan Weitz

C. Hans Singer

D. Yujiro Hayami
8295. Which of the following is not true about most farmers in LDCs ?
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A. cultivators farm only as much land as their

B. On the traditional farm, output is always greater than consumption

C. labor is underutilized except for planting and harvesting seasons

D. The staple crop is the chief sources of food

8296. Which of the following statement about rural and agricultural development is true ?
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A. Rural development is the same as agricultural development

B. Household nonfarm income is uncorrelated to farm productivity and uncorrelated to farm productivity and household incomes in Kenya

C. Chinas rural population receives little income from nonfarm income

D. The agrarian community requires a full range of services such as schools merchants banks and so on
8297. Which of the following is not a major factor raising LDC agricultural labor productivity ?
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A. massive government intervention

B. new technical and organizational knowledge from greater specialization

C. new biological chemical mechanical inputs in production

D. expanded markets for agricultural output

8298. Amartya K. Sen emphasizes that having enough to eat depends on ?
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A. societys high Gini concentration

B. societys system of entitlement

C. low poverty rates

D. an egalitarian income distribution
8299. When several countries jointly impose common external tariffs, eliminate tariffs on each other, and eliminate barriers to the movement of labor and capital among themselves, they have formed a/na ?
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A. customs union

B. economic union

C. free trade area

D. common market
8300. The European Union has achieved all of the following except ?
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A. levied common tariffs on products imported from nonmembers

B. adopted a common fiscal policy for member nations

C. disbanded all tariffs between its member countries

D. established a common system of agricultural price supports