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
8401. Which one of the following is a normative statement ?
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A. Inequality in the distribution of income is a more serious problem than unemployment

B. Inflation is rising

C. The richest 10 per cent of the population has had a bigger percentage increase in incomes over the past 10 years than the poorest 10 percent

D. The proportion of peoples income paid in taxes is higher under this government than under the previous one.

8402. The retail price index is used to__________________?
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A. compare shop prices

B. None of the above

C. construct price lists

D. measure changes in the cost of living
8403. When we know the quantity of a product that buyers wish to purchase at each possible price we know_____________?
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A. Excess supply

B. Supply

C. Demand

D. Excess demand

8404. Data are important in economics because _________ and ____________?
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A. they can be used in computers governments use them

B. they provide interesting information can be summarized

C. they suggest relationships for explanation, allow testing of hypotheses

D. they can be used for tables, they can be graphed

8405. In the mixed economy________________?
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A. economics s is solved by government departments

B. economics problems are solved by the government and market

C. economic decisions are made by the private sector and free market

D. economic allocation is achieved by the invisible hand

8406. The economics the central problem is ?
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A. Scarcity

B. Consumption

C. Money

D. Allocation

8407. Economics is the study of ?
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A. Consumption decisions

B. the best way to run society

C. how society decides what how and for whom to produce

D. Production technology

8408. Productivity can be increased by ?
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A. improving the education of workers

B. restricting trade with foreign countries.

C. raising minimum wages.

D. raising union wages.

8409. Macroeconomics is the study of ?
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A. the economy as a whole

B. household purchase decisions

C. the relationship between different sectors on the economy

D. individual building blocks in the economy

8410. -7-+47-+45-+-+Since people respond to incentives, we would expect that if the average salary of accountants increases by 50% while the average salary of teachers increase by 20% then ?
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A. Fewer students will take degree courses in education and more will take accounting courses.

B. fewer students will attend university

C. None of these

D. fewer students will take degree courses in education and more will take accounting courses
8411. In a planned or command economy, all the economics decisions are taken by the ?
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A. voters

B. Consumers

C. government

D. Workers

8412. A demand curve can shift because changing ?
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A. tastes

B. all of the above

C. prices of related goods

D. incomes

8413. Time series data show information ?
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A. about different points in time over the same variable

B. about different points in time over different places

C. about different variables over different places

D. about the same point in time over different places

8414. Inflation is___________________?
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A. an increase in the overall price level.

B. an increase in the overall level of economic activity.

C. a decrease in the overall level of economics activity

D. a decrease in the overall price level.

8415. Foreign trade ?
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A. makes a country more equitable.

B. allows a country to have a greater variety of products at a lower cost than if it tried to produce everything to home.

C. increase the scarcity of resources.

D. None of these

8416. In a free market system, the amount of goods and services that any one household gets depends upon its ?
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A. wage and interest income

B. income

C. wealth

D. income and wealth
8417. Macroeconomics deals with?
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A. economics aggregates

B. the behavior of the electronics industry

C. the behavior of firms

D. the activities of individual units

8418. Raising taxes and increasing welfare payments ?
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A. improves equity at the expense of efficiency.

B. reduces market power

C. improves efficiency at the expense of equity.

D. Proves that there is such a thing as a free lunch

8419. A straight-line diagram can be drawn knowing the ________ and ________?
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A. intercept and slope

B. scale and slope

C. intercept and scale

D. vertical axis and horizontal axis

8420. A graph showing all the combinations of goods and services that can be produced if all of societys resources are used efficiently is a ?
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A. Circular-flow diagram.

B. Lorenz curve.

C. Production possibility curve.

D. capital consumption frontier.

8421. Which of the following statements is true about a market economy ?
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A. Market participants act as if guided by an invisible hand to produce outcomes that maximize social welfare

B. With a large enough computer, central planners could guide production more efficiently than markets.

C. Taxes help prices communicate costs and benefits to producers and consumers.

D. The strength of a market system is that it tends to distribute resources evenly across consumers.

8422. The public sector includes ?
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A. Market forces of supply and demand

B. Government ownership of assets

C. All trade via barter

D. Investors owning companies

8423. Which of the following products would be least capable of producing an externality ?
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A. cigarettes

B. stereo equipment

C. inoculations against disease

D. food

E. education

8424. A market can accurately be described as_________________?
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A. a place to sell things

B. a place where buyers and sellers meet

C. a place to buy things

D. the process by which prices adjust to reconcile the allocation of resources
8425. Which of the following activities is most likely to produce an externality?
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A. A student reads a novel for pleasure

B. A student eats a hamburger in the student union.

C. A student sits at home and watches T.V

D. A student has a party in her room in the student hall of residence.
8426. A rational person does not act unless ?
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A. The action produces marginal costs that exceed marginal benefits.

B. The action produces marginal benefits that exceed marginal costs.

C. the action is ethical

D. The action makes money for the person.

8427. The total demand for goods and services in an economy is known as_____________?
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A. gross national product.

B. economy-wide demand

C. aggregate demand

D. national demand.

8428. ________ and ___________ do not directly affect the demand curve ?
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A. the costs of production bank opening hours

B. the price of related goods preferences

C. the price of related goods consumer income

D. consumer incomes, tastes

8429. Which of the following involves a trade off ?
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A. Going to university

B. Taking a nap

C. Watching a football game on Saturday afternoon

D. All of these answers involve trade-offs
8430. If you income during one year is Rs10,000 and the following year it is Rs12,000 then it has grown by ________________?
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A. 2%

B. 12%

C. 16%

D. 20%
8431. when a market is in equilibrium ?
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A. Excess demand and excess supply are zero

B. The market is cleared by the equilibrium price

C. quantity demanded equals quantity supplied

D. All of the above
8432. Which of the following is a normative statement in economics ?
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A. More spending by the government reduces poverty

B. Higher taxes lead to less desire to work

C. The Pakistans economy is growing fast relative to other SAARC members

D. The government should concentrate on reducing unemployment
8433. A recession is ?
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A. a period of very rapidly declining prices.

B. a period of declining unemployment

C. a period during which aggregate output declines.

D. a period of declining prices.

8434. Which of the following is not one of the basic economic s ?
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A. How to produce

B. Who to produce for

C. How to maximize economic growth

D. What to produce

8435. Which of the following situations describes the greatest market power ?
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A. a students impact on college tuition

B. Microsofts impact on the price of desktop operating systems

C. a farmers impact on the price of corn

D. Subarus impact on the price f cars

8436. The sacrifice involved when you choose a particular course of action is called the?
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A. Producer cost

B. Alternative

C. Consumer cost

D. Opportunity cost
8437. The study of inflation is part of ?
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A. macroeconomics.

B. descriptive economics

C. normative economics

D. microeconomics

8438. Human wants are_______________?
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A. Likely to decrease over time

B. Limited

C. Always fixed

D. Unlimited
8439. Trade-offs are required because wants are unlimited, and resources are ?
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A. unlimited

B. Efficient

C. economical

D. Scarce
8440. Periods of less than full employment corresponds to _________________ ?
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A. points outside the production possibility curve

B. points inside the production possibility curve.

C. either points inside or outside the production possibility curve.

D. points on the production possibility curve

8441. A real value can be derived from a nominal value by ?
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A. adjusting for data collection errors

B. adjusting for population changes

C. adjusting or changes in prices

D. adjusting for changes over time

8442. Aggregate supply is the total amount ?
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A. of goods and services produced in an economy.

B. of products produced by a given industry.

C. of labor supplied by all households.

D. Produced by the government.

8443. A mixed economy ?
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A. Has supply but not demand

B. Has market forces and government intervention

C. Has supply and demand

D. Has demand but not supply

8444. One principle in the theory of mercantilism is that colonies should be_____________?
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A. acquired as markets and sources of raw materials

B. encouraged to develop their own industries

C. granted independence as soon as possible

D. Considered an economic burden for the colonial power

8445. To maintain its economic position, Japan has often limited the number of cars or the quantity of farm products that the United States can sell in Japan Japan has imposed these limits to develop ?
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A. a belief system

B. a more open market

C. an equality of trade position

D. a favorable balance of trade
8446. Name the country which has the largest natural gas reserves in the world ?
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A. India

B. Russia

C. Italy

D. Canada

8447. Copper may be found native that is in its pure state but is more often found in chemical combinations with ?
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A. Iron, lead and sulphur

B. Iron, gold and silver

C. All of the above minerals

D. Gold, silver and lead

8448. Which of the following practices of cultivation can be referred to as crop rotation ?
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A. None of the above

B. The same crop in different seasons

C. Different crops in the same season

D. Different crops in different seasons
8449. What country had the third largest area of forest ?
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A. Brazil

B. Canada

C. United States

D. Russia

8450. What is known as ground black-cherry pits in the Middle East ?
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A. Bangna Cauda

B. Mahlab

C. Falafal

D. Baba Ghanoush