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
801. Technological improvements are similar to international trade since they both ?
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A. Provide benefits for all producers and consumers

B. Reduce unemployment for all domestic workers

C. Increase the nations aggregate income

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

802. Initial conditions in the year before the crisis in Thailand Indonesia Malaysia the Philippines and Korea in 1997 indicate that ?
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A. credit growth was fast

B. capital inflows/GDP were very low

C. Nonperforming bank loan ratios were high

D. . current account deficits were high

803. The natural rate of output is the amount of real GDP produced ?
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A. When there is no no unemployment

B. When the economy is at the natural rate of investment

C. When the economy is at the natural rate of unemployment

D. When the economy is at the natural rate of aggregate demand

804. The multiplier is calculated as___________?
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A. 1/MPS

B. 1/MPC

C. 1(1-MPC)

D. a or b
805. The University of Pennsylvania researchers Summers and Heston compute the price level of GDP as the ratio of purchasing power parity (PPP) exchange rate to the actual exchange rate where ?
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A. both exchange rates are measured s the domestic currency price of the US-dollar

B. both exchange rates are not converted into international dollars

C. both exchange rate are pegged

D. both exchange rate are converted into Big Mac PPP formula

806. A main advantage of specialization results from ?
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A. Smaller production runs resulting in lower unit costs

B. Economies of large-scale production

C. High wages paid to foreign workers

D. The specializing country behaving as a monopoly

807. In the economy when a steel producer sells steel to car producer it is regarded as ?
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A. a final good

B. a leakage

C. an intermediate good

D. an injection

808. Aggregate demand includes only ?
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A. consumer expenditure investment government expenditure and exports less imports

B. sumer expenditure and investment

C. consumer expenditure government expenditure and investment

D. consumer debt investment debt and government debt

809. Aggregate supply is the total amount ?
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A. of products produced by a given industry

B. of goods and services produced in an economy

C. produced by the government

D. of labor supplied by all households

810. Total withdrawals from the circular flow of income include ?
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A. consumption savings and taxes

B. savings taxes and imports

C. savings government expenditure and imports

D. savings taxes and exports

811. Short-run equilibrium output means that aggregate demand __________ actual output?
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A. fluctuates around

B. is greater than

C. is less than

D. equals
812. Feudalism was undercut by?
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A. the migration of serfs to the town

B. the rise of the business corporation

C. #NAME?

D. factory competition with handicraft and manorial production

813. The marginal propensity of consume is equal to ?
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A. Total consumption / total income

B. Change in consumption / change in income

C. Change in consumption / change in savings

D. Total spending / total consumption

814. Which of the following statement is not true about LDCs ?
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A. Setting up western labor standard and minimum wages in labor-abundant LDCs is sensible

B. A greater share of GNP would have to be devoted to education to attain the same primary enrollment rates as in the U.S

C. Most LDCs have less than 1/10 the per capita GNP of the U.S

D. Most LDCs have a greater shortage of qualified teachers than the U.S does

815. Rostows economics stages are ?
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A. The traditional society the preconditions for takeoff, the takeoff, the drive to maturity and the age of high mass consumption

B. the preconditions for consumption the replication the drive to maturity and the age of high mass consumption

C. The preconditions for takeoff, the takeoff, the drive to maturity and the age of creative destruction

D. the learning curve the age of high mass consumption post takeoff, and the drive to maturity

816. Refer to Exhibit 6.If People in the economy expect inflation to be 6 percent but inflation turn out to be 3 percent the economy is operating at point ?
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A. c

B. F

C. d

D. H

817. The percentage of the labor force that is unemployed is the ?
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A. labor force rate

B. unemployment rate

C. employment rate

D. unemployment population ratio

818. The Harrod Domar growth model suggests that growth is ?
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A. directly related to savings and inversely related to the capital/output ratio

B. directly related to savings and the capital/output ratio

C. directly related to the capital/output ratio and inversely related to savings

D. indirectly related to savings and the capital/output ratio

819. The formula to calculate economic growth from 2001 to 2002 is given by ?
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A. [(GDP2002 GDP2001)/GDP2001]100

B. [(GDP2001 GDP2002]100

C. [(GDP2002 + GDP2001)/GDP2001]100

D. [(GDP2002 GDP2001) GDP2001]100

820. A countrys total external debt (EDT) includes ?
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A. IV public official development assistance

B. long-term debt with a maturity of more than one year

C. short term debt with a maturity of one year or less

D. . repurchase obligations to the IMF

821. The original Phillips curve illustrates ?
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A. The positive relationship between output and unemployment

B. The positive relationship between inflation and unemployment

C. The trade-off between output and unemployment

D. the trade-off between inflation and unemployment
822. If there is a balance of payments deficit then in a floating exchange rate system ?
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A. The external value of the currency would tend to rise

B. The external value of the currency would tend to fall

C. Aggregate demand is increasing

D. The injections from trade are greater then the withdrawals

823. Debit entries on the balance of payments are the entries that would ?
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A. exist at the bottom line after all accounts are totaled

B. bring foreign exchange into the country

C. indicate a surplus exist

D. mean a loss of foreign exchange
824. In an Open economy leakage to imports ____________ the value of the multiplier ?
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A. reduce

B. increase

C. do not change

D. None of the above

825. If a result of households wish to save more there is a change in equilibrium income and no change in equilibrium saving this is an example of ?
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A. market imperfection

B. market failure

C. the paradox of thrift

D. the law of diminishing returns

826. In the balance of payments the statistical discrepancy is used to ?
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A. obtain an accurate account of a balance of payments deficit

B. insure that the sum of all debits matches the sum of all credits

C. obtain an accurate account of a balance of payments surplus

D. insure that trade imports equals the value of trade exports

827. A theory ?
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A. provides an explanation of all factors influencing economic growth.

B. explains causal relationships among variables

C. is a systematic explanation of relationships between economic variables

D. #NAME?

828. Barans Neo-Marxist thesis has been criticized for ignoring the probability that power is frequently ?
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A. based on an alliance between landowners and peasants

B. derived from domestic opponents of nationalism

C. transferred from one elite to another when revolution occurs

D. based on an alliance between peasants and the foreign bourgeoisie

829. Which of the following statement is Not true ?
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A. Many large LDC debtors borrowed heavily because of their excellent international credit ratings

B. Middle income countries account for almost four-fifths of the total outstanding debt of all LDCs

C. The ratio of debt service to GNP is very good indicator of the debt burden

D. The debt-burden of sub Saharan African countries may be as heavy as for middle income countries

830. Two of the major factors contributing to growth are ?
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A. money and efficiency

B. money and luck

C. resources and efficiency

D. resources and a good climate

831. Leakages from the circular flow are _________ and __________?
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A. consumption investment government expenditure

B. investment, savings, government expenditure

C. consumption taxes imports

D. savings, taxes net of subsidies imports
832. What is not a feature of the EU as a single market ?
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A. No import taxes on goods bought in another members country

B. Elimination of border controls

C. Each country can retain its own technical standards

D. Common security arrangements

833. An optimal tariff is one which reduces imports to the level at which ____ equals ____?
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A. the balance of trade, zero

B. imports, exports

C. The demand for currency the supply of currency

D. social marginal cost, social marginal benefit
834. Aggregate demand in an economy trading internationally with a government sector can be written as ?
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A. AD = C + I + G + X + Z

B. AD = C + I + G

C. AD = C + I + G + X Z

D. AD = C + I

835. Which of the following would shift the long-run Phillips curve to the right ?
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A. An increase in the minimum wage

B. An increase in the aggregate demand

C. An increase in the expected inflation

D. An increase in the price of foreign oil

836. OECD stands for ?
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A. Open Economies Caucus on Development

B. Organization for Economic Cooperation and Development and Development

C. Oil Exporting Countries Development

D. Organization for Environmental cooperative Department

837. The multiplier tells us how much __________ changes after a shift in ____________?
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A. consumption income

B. output aggregate demand

C. investment output

D. savings investment

838. Purchasing power parity exchange rates are used to ?
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A. convert nominal GDP to real GDP

B. estimate the costs of economic growth

C. compare living standards of different countries

D. pay wages b multinational companies

839. Karl Marxs historical materialism views were shaped by all of the following EXCEPT ?
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A. The rise of industrial and capitalist production

B. a growing spiritual rationalism

C. Political and labor revolts

D. The French Revolution

840. Which of the following countries is not a low income country ?
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A. India

B. Malaysia

C. Indonesia

D. Nigeria

841. Which of the following events shifts the short run aggregate supply curve to the right ?
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A. a decrease in the money supply

B. an increase in government spending on military equipment

C. a drop-in oil prices

D. None of these answers

E. an increase in price expectations

842. According to the Heckscher-Ohlin model the source of comparative advantage is a countrys ?
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A. technology

B. advertising

C. factor endowments

D. both (a) and (c)

843. A tax of 20 rupees per unit of imported cheese would be an example of a (an) ?
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A. Specific tariff

B. Compound tariff

C. Effective tariff

D. Ad valorem tariff

844. Pathologies endemic to the Soviet bureaucracy included secrecy formalism cumbersome procedures rigidity and the tendency to concentrate on control rather than performance The party controlled The state by using the ____ the power to recommend and approve managers in administration and enterprises, of appointments and promotions to control access to government positions ?
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A. Gosplan

B. nomenklatura system

C. Parastatals

D. Gosagroprom

845. An increase in aggregate demand if aggregate supply is totally inelastic will ?
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A. increase output and price

B. decrease output and price

C. increase price but not output

D. increase output but not price

846. Should international transportation costs decrease the effect on international trade would include a (an) ?
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A. Decrease in the level of specialization in production

B. increase in the volume of trade

C. Smaller gain from trade

D. Decline in the income of home producers

847. When a tax on a good start small and is gradually increased tax revenue ?
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A. will first rise and then fall

B. will rise

C. will fall

D. will first fall and then rise

848. A foreign-trade zone (FTZ) is ?
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A. designed to promote exports by deferring imports duties on intermediate inputs and waving such duties if the final product is re-exported rather than sold domestically

B. a regional area within which trade with foreign nations is allowed

C. a free trade agreement among several nations

D. designed to limit exports of manufactured goods by placing export taxes on goods made within the zone

849. A tax system is regarded as horizontally equitable if ?
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A. taxpayers with similar abilities to pay taxes pay the same amount

B. taxes are as low as possible

C. the system comprises only lump sum taxes

D. taxes on all goods are levied at the same rate

E. all taxpayers pay the same amount of tax

850. When excess demand occurs in an unregulated market, there is a tendency for ?
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A. price to fall

B. price to rise

C. quantity demanded to increase

D. quantity supplied to decrease.